Bonds to fund new Gadsden home for Alabama Department of Rehabilitation Services

Some creative funding will keep two dozen jobs in Gadsden.

The City Council on Tuesday approved the issuance by the city’s Public Building Authority of revenue bonds to cover a new local home for the Alabama Department of Rehabilitation Services.

It would be located on city-owned land in the 200 block of East Broad Street, behind Burger 101 and Jack’s.

Here’s the creativity: The city won’t be paying to service the bonds and its bond and credit ratings won’t be impacted.

That’s covered in an agreement subleasing the bond financing to ADRS. The agency’s rental costs must cover both the principal and the interest on the bonds, and will shift as needed to cover that.

ADRS currently is housed on the Gadsden State Community College campus, but will be vacating that site at some point because of construction that’s underway on the new Advanced Manufacturing and Workforce Skills Training Center at GSCC and construction to come on the extension of Interstate 759.

“It would leave their offices in Gadsden without a home, and we wanted to retain those jobs and that state agency’s presence here,” Brett Johnson, Mayor Craig Ford’s chief of staff, said during the Oct. 10 precouncil work session at which the measure was discussed.

Ford on Tuesday said, “We’re really excited about developing that area on East Broad.”

City officials cited David Hooks, director of the Gadsden-Etowah Industrial Authority, for his work on the project.

Hooks said ADRS couldn’t find other accommodations in Etowah County that met its needs, “so we’re building them a building.” He said he just “facilitated” the deal, adding input on the funding mechanism that’s being used from his days in the banking industry.

He said the bond issue — roughly a $7 million transaction, although that amount remains to be finalized — should be ready to “go to market” once federal officials sign off on it (required because of federal funding of ADRS). They’ll be Aa2 bonds, high credit quality, based on the state’s rating.

ADRS’ mission, according to its website, is “to enable children and adults with disabilities to achieve their maximum potential.” It does that through early intervention, children’s rehabilitation, vocational rehabilitation and independent living programs.

This article originally appeared on The Gadsden Times: Gadsden uses creative bond issue to fund home for state agency