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Mobile County won't back loan for car firm; Mike Dow will try to rework deal

Published: Thursday, November 04, 2010, 6:30 AM Updated: Thursday, November 04, 2010, 8:49 AM

By Jeff Amy, Press-Register
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View full size(Courtesy Revenge Supercars)Revenge Supercars shows its Blade sportscar at the North American International Auto Show in January 2010 in Detroit. The firm is proposing to spend at least $75 million to build an assembly plant and test track on 200 acres at the Alabama Motorsports Park in Prichard.

Mobile County commissioners declined Wednesday to backstop $50 million in borrowing by Revenge Supercars LLC.

The firm wants to build a $75.5 million plant and test track in Prichard, where it would hire 600 employees to assemble sports cars priced at $195,000 apiece.

All three commissioners said they were unwilling to approve the deal as Revenge had proposed it, saying they couldn’t risk county money on a venture that Commission President Merceria Ludgood described as “highly speculative.”

Revenge would build on 200 acres within the proposed Alabama Motorsports Park. Former Mobile Mayor Mike Dow, who has been the public face of the planned motorsports complex, led advocacy for Revenge on Wednesday. Commissioners did not take a formal vote Wednesday, and Dow told them that he would seek alternatives and present them to the county by Monday.

Dow said a bad economy and the aftermath of the financial crisis mean lenders won’t allow Revenge to borrow without help.



“We’re relegated to having to be creative to try to get some of these things done,” Dow said.



State authorities have given Revenge, led by Australian auto designer Peter Collorafi, approval to sell tax-exempt bonds.

Revenge would be responsible for repaying the bonds, but had asked the County Commission to agree to a “moral obligation” to repay $50 million if Revenge were to default.

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



Revenge has said an unnamed investor will guarantee $25 million of the money.



“If it’s the deal of the century, why aren’t other investors lining up?” Ludgood asked. “Typically we’re not asked to carry the whole load.”

Dow said the unnamed international investor was in place and said others would come “after they know it’s real.”



Also voicing support for Revenge were Prichard Mayor Ron Davis, other Prichard elected officials and a representative of city retirees who are seeking payment from Prichard’s insolvent pension fund.

"When issues come up that pertain to Prichard, people move away from the table,” Davis said. “But you have a real opportunity to help us. We are crying out to you to help us, so we can help these folks.”



County Commissioner Mike Dean asked why the Mobile Area Chamber of Commerce and state officials aren’t also lobbying for Revenge.

“I’m concerned why you’re standing here alone without these other state agencies,” he said.



A bond adviser to the county prepared a memo analyzing the deal, but County Attorney Jay Ross declined to release it, saying the commission signed a confidentiality agreement with Revenge several weeks ago.

Collorafi could not be reached Wednesday for comment. 



Revenge hasnt made a public statement for 2yrs since this article was published, so I dont see any improvement thus far!