The state of Alabama closed out an almost $92 million bond sale Wednesday that will largely go to renovations at state parks across the state.
According to the Department of Finance, the bond sale raised about $91.6 million in total. Approximately $79.8 million will go to the Department of Conservation and Natural Resources. About $5 million and $6.8 million will go to the Alabama Historical Commission and Alabama Forestry Commission, respectively.
"The sale proceeds will be used for improvements and renovations at properties and facilities owned and operated by the Department of Conservation and Natural Resources, the Historical Commission, and the Forestry Commission," Susan Wilhelm, assistant finance director, told 1819 News.
According to the Department of Finance, the state's cost to pay off the bond's principal and interest will be about $136.5 million over 20 years beginning in September 2023.
A cost estimate in April 2021 by legislative staff initially estimated the cost to pay off the bonds at $120 million. The Federal Reserve has raised interest rates six times in 2022 to try to put a damper on inflation, but this also increases the cost of borrowing money for individuals, businesses, and governments.
Amendment 1, approved by Alabama voters on May 24 by a 77-to-23% margin, authorized the state to issue around $85 million in bonds for state park improvements, with any excess sales going to the Alabama Historical Commission and the Alabama Forestry Commission.
According to Alabama Daily News, the first projects to be bid on and funded with proceeds from the bond sale are:
Campground renovations at Oak Mountain State Park;
Bathhouse renovations at Oak Mountain;
Campground expansion at Gulf State Park;
Cabins at Gulf State Park;
Lodge renovations at Joe Wheeler State Park;
Town Creek campground expansion at Lake Guntersville State Park;
Campground renovations at Wind Creek State Park.
To connect with the author of this story, or to comment, email caleb.taylor@1819News.com.
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