Florida County To Borrow $50M For Hurricane Michael Repairs
Oct. 7--PANAMA CITY -- Bay County commissioners on Tuesday approved a $50 million bond with Truist Bank for Hurricane Michael recovery.
The money will help the county continue its repair work while Federal Emergency Management Agency funds make their way here. With the new bond, the county has borrowed $300 million for recovery expenses since Michael devastated the area two years ago.
The $50 million will be used for several projects, including building new fire stations in Hiland Park, Southport and Panama City's west end station on Michigan Avenue. Currently, there are temporary structures at those locations.
"We are just creating another bridge between completing these projects and getting the reimbursement," said Philip Griffitts, County Commission chairman. "We've already paid back around $100 million to the banks through FEMA proceeds and we'll continue to do that to finish these projects in a timely fashion."
The county's debt committee recently chose the bond with Truist Bank as its best option. Truist offered more money and an interest rate that matched the lowest of the other two bids at 1.06% interest rate.
While much of the new bond is targeted for reconstruction of the three fire stations, road repair and other projects also are planned.
Griffitts said he is hopeful that this will be the county's last round of borrowing for Hurricane Michael repairs.
"I'm hopeful this is it," said Griffitts, chuckling at the thought of having to sign another bond agreement. "When you sign your name at the bottom of a $50 million bond, it's a little stressful."
Griffitts said what keeps his stress about the bonds under control is seeing the recovery from the storm. He said the county looks good now, and specifically pointed out how Mexico Beach has bounced back.
County Manager Bob Majka also said he is hopeful the county's borrowing for Michael is finished, but said several factors will dictate future bonds. One major factor is the skyrocketing price of lumber during the past 90 days.
But Majka noted that about $12 million the county received for three buildings -- the Parker Tax Collector's Office, East Bay Community Center and the county's records facility -- will be used for other projects because those buildings won't be coming back.
The county has repaid about $100 million on the previous loans for Hurricane Michael. All of the loans can be paid back early without penalties.
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