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Mobile County won't back $50 million in bonds for proposed car plant
Published: Tuesday, November 23, 2010, 7:30 AM Updated: Tuesday, November 23, 2010, 12:47 PM
By Katherine Sayre, Press-Register Press-Register
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View full sizeRevenge Supercars shows its Blade sportscar at the North American International Auto Show in January 2010 in Detroit. The Mobile County Commission has passed on a request to stand behind $50 million in bonds for the $75.5 million plant. (Courtesy Revenge Supercars)
MOBILE, Ala. -- The Mobile County Commission has declined to backstop millions of dollars in bonds for a proposed Revenge Supercars facility in Prichard, officials said today.


Still, efforts to bring Revenge’s proposed $75.5 million plant and test track to the proposed Alabama Motorsports Park will continue through other investors, according to leaders of both firms.

State authorities gave Revenge approval to sell tax-exempt bonds to build a facility in Prichard. The company wanted the Mobile County Commission to stand behind $50 million in bonds for the project, in essence borrowing the county’s credit. But commissioners shied away from such a deal.

Former Mayor Mike Dow, who is developing the motorsports complex where Revenge would be a tenant, said today that Revenge lowered the request to $40 million, but the commission again declined.

“They said they had their plate full,” Dow said.

Dow had set today as a deadline to work out a deal. The County Commission met for a regular meeting this morning, but members never mentioned the project.

Commission spokeswoman Nancy Johnson later said that organizers “couldn’t satisfy the commissioners’ concerns about obligations that would be incurred. It was too risky in their view.”

In recent discussions, commissioners have indicated that they didn’t want to put the county’s credit at risk. Under the proposal, the commission would have agreed to a “moral obligation” to repay millions of dollars if Revenge were to default.

Lawyers have said the county would not be legally obligated to repay the bonds. But commissioners have indicated that they thought the county would have to cover the debt or suffer an unacceptable hit to the county’s credit rating.

The bonds had to be issued by the end of the year.

Commissioner Mike Dean said while the county was uncomfortable with the deal, he continues to wish the group good luck in finding other investors.

Revenge, led by Australian auto designer Peter Collorafi, would be built on 200 acres within the proposed 2,800-acre Alabama Motorsports Park.

Collorafi today said in a written statement that the county’s decision was “unfortunate,” but the company still wants to move to south Alabama, even without the bonds.

“Revenge Supercars LLC is currently moving forward with alternative funding through ongoing negotiations with an international investor group, while continuing to put other well-respected team partners in place to ensure this forward-thinking project quickly comes to fruition,” Collorafi said.

He said that the project would bring 1,100 jobs along with 850 temporary construction jobs and a boost in revenue to Prichard and surrounding areas in Mobile County.

Meanwhile, Dow echoed assurances that the project will continue through other funding sources.

He said the bonds would have “fast-tracked” getting Revenge to the site starting next year, and now “we’re just in the process of making it happen.”

Related topics: Alabama Motorsports Park, Mobile County Commission, Revenge Supercars



private investors???????????????? who could that be???lol

http://blog.al.com/live/2010/11/mobile_county_declines_deal_wi.html