Columbus officials later this year may use a state transportation improvement grant to aid a local developer working to construct two hotels near the intersection of Highway 82 and 18th Avenue North.
The announcement came during a Tuesday night Columbus City Council meeting after council members unanimously voted to approve a memorandum of understanding between the city and Columbus Land Development company.
By passing the motion, council members agreed to use any state transportation grant money given to the city this year to aid local developer Mark Castleberry, part owner of Columbus Land Development, in completing road improvements near the 18th Avenue North development.
Once completed, the estimated nearly $30 million development will house a 95-room Fairfield Inn, a 103-room Courtyard by Marriott and could bring as many as 748 jobs, including construction.
“He (Castleberry) has requested the city use any state transportation grant money it gets this year to do some intersection work over there,” City Attorney Jeff Turnage said of the development. “We get that money almost every year.”
The grant money likely would be used to construct a “deceleration lane” and add a traffic light on Sixth Street North near what is planned as the southern entrance to the development, Turnage explained.
Because the city has not yet received the grant money, city officials were unable to estimate the grant”s amount.
“Mr. Castleberry”s company has agreed to pay any match money associated with the grant,” Turnage added.
TIF bond approved
Council members during Tuesday”s meeting also unanimously agreed to enter into an interlocal agreement with Lowndes County to support the issuance of up to $3 million in tax increment financing bonds to support Castleberry”s project.
Because city and county officials last year passed motions supporting the TIF bonds, Tuesday”s action was a “formality,” Turnage said.
“The bonds are not to exceed $3 million,” Turnage told the council. “Most of the details of the bond will be set forth in a development agreement between the city and the developer at a later time.”
Currently, Castleberry would be required to construct the two hotels and at least 10,000 square feet of restaurants on the development site within 60 months of breaking ground at the site to receive the bond funds.
However, the requirements may be amended before the bonds are issued.
If the TIF bonds are issued, half of the sales tax generated by the development and all ad valorem property taxes paid on the development land during the next 10 years would be used to repay the bond amount.
Although the interlocal agreement has been passed by the City Council, it still must go before the Lowndes County Board of Supervisors Aug. 31 before the bond plan is approved.
Pole debate
In other news, the council agreed to investigate a claim of damaged property at 724 11th St. N.
Property owner Warren Gardner claimed Columbus Public Works employees in February damaged a utility pole being used as a recreational vehicle hookup location on the property.
The workers may have broken the pole while working to clean up what the city considered to be a dilapidated property, Gardner told the council.
“I just want to have what”s fair,” Gardner said. “They hit the pole and then you stick me with an $819.80 bill for it?”
Because city officials classified the property as overgrown and dangerous, the city sent two notices to Gardner demanding he clean the property within a set amount of time.
When Gardner failed to clean the property, city public works employees used a dump truck, a mini excavator and three laborers to bring the property to code, explained Public Works Director Mike Pratt.
After completing the work, the city charged Gardner for the cleanup, legal advertising fees and attorney”s fees, per city dilapidated property law, bringing the total charge to nearly $820.
Although council members refused to alter the charge, the city will pay to replace the utility pole if Pratt determines his employees were responsible for damaging it, Columbus Mayor Robert Smith said.
“If we find out we are at fault, we will replace the pole,” Smith told Gardner.
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