Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance topic
No spam. Unsubscribe anytime.
Gulf Shores authorizes up to $20 million warrant to fund airport 'Terminal 1.5' expansion
Summary
The City of Gulf Shores adopted Ordinance No. 2203 to issue a general obligation taxable warrant of up to $20,000,000 to Renasant Bank to fund Terminal 1.5 improvements at Gulf Shores International Airport; the privately negotiated warrant carries a 4.800% fixed interest rate and matures March 20, 2029.
The Gulf Shores City Council on March 9 approved Ordinance No. 2203 authorizing the issuance and sale of a General Obligation Taxable Warrant, Series 2026‑B, in an amount not to exceed $20,000,000 to Renasant Bank. The purchase of the warrant is intended to provide funds to the Airport Authority for design and construction of the 'Terminal 1.5 Expansion' at Gulf Shores International Airport.
Ordinance No. 2203, adopted by unanimous roll‑call vote after the council suspended rules for immediate consideration, authorizes multiple draws up to the $20 million maximum and specifies that the Warrant will bear a fixed 4.800% annual interest rate, pay interest semi‑annually and mature March 20, 2029. The Warrant is pledged as a general obligation of the City and the ordinance establishes a special 'Series 2026‑B General Obligation Taxable Warrant Fund' to receive payments for principal and interest.
The ordinance states the Bank is the original purchaser in a privately negotiated loan; the Warrant will not be assigned a municipal securities rating, registered with DTC or issued with a CUSIP. The City also agreed in the ordinance to provide audited financial statements upon request and certain covenants to the Bank. The ordinance explicitly notes the Bank and its representatives are not municipal advisors and that the City should consult its own advisors.
Councilman Joe Garris Jr. moved for final passage after suspension of rules; the motion carried unanimously with Mayor Robert Craft and all council members voting 'aye.' The ordinance includes standard covenants, default remedies (limited to mandamus in Baldwin County courts), and authorizes city officers to execute the Warrant and related closing documents.
Next steps: delivery of the Warrant to Renasant Bank around the projected closing date (ordinance contemplates about March 20, 2026), draw requests and supporting invoices to be provided to the Bank as work proceeds, and application of proceeds to the Airport Authority’s Terminal 1.5 project.
