At their April 15 meeting, the council authorized the 4A Economic Development Corporation (EDC) to secure funding through sales tax revenue bonds.

Council members chose to enter into the closed session after the city’s plans to use certificates of obligation (COs) to pay for the new park were dashed in part by one of their own.

Councilman David Sutherland submitted a petition with 59 signatures of registered voters to the city offices March 26 requesting the city put its proposed plan to the voters.

According to City Administrator Ryan Kelly, the petition was turned in to the offices too late to be put on the May ballot. Kelly said the next time the issue could be voted on would be in November, which could have delayed festivities already planned at the park for this summer.

In lieu of waiting seven months for a verdict on the COs, city officials gave the go-ahead for the revenue bonds.

City Attorney Leonard Schneider pointed out that the debt accrued from the revenue bonds “will be the EDC’s alone” and that no matter what happens, even if the EDC were to default on the loans, the citizens would not be responsible for the repayment of the debt.

Jim Gilley, the city’s financial advisor, said he has already received a “verbal commitment from a local bank to buy the bonds.”

Even though the city council approved the revenue bonds, Councilmember Patsy Williams spoke out on one issue surrounding the revenue bonds that she isn’t happy about.

“I want the people to know how much using revenue bonds over COs is costing the city,” Williams said.

Gilley said that by not utilizing the COs, the city is spending about $2.2 million more.

“I urge every citizen that before they take on the responsibility of signing a petition they need to understand what they are signing,” Williams said. “I didn’t see anyone who signed the petition at any meetings.”

Sutherland countered by saying that his petition was only addressing the issue that the city had “always planned on paying for the park with a sales tax revenue bond.”

“It only changed to the COs because of the market,” he said. “And, they knew exactly what they were signing.”

Now that the city will be utilizing revenue bonds to fund the park, there will not be a November vote on the certificates of obligation.

Phase 1 of the park’s construction is scheduled to begin shortly and will focus primarily on building the infrastructure. Projects in Phase 1 include a fishing lake, excavation of the general area, clearing of the land, paving of the primary roads and the construction of a pavilion with restroom and concessions.

Phase 1 will cost approximately $2.5 million.

The current Magnolia City Park sits on a small plot of land at the intersection of FM 1488 and FM 1774.

For more information on the City of Magnolia’s new public park, call 281-356-2266.

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