The Gulf Shores City Council signed off on two 20-year loans totaling $197 million, locking in financing for a sweeping 10-year capital improvement plan city leaders say is needed to catch up with the fastest population growth in Alabama.
Mayor Robert Craft said most of the city’s residential growth has pushed north of the Intracoastal Waterway, an area that still lacks fire stations, parks and recreation amenities. The 2020 Census counted roughly 5,000 new residents over the previous decade, a pace Craft said stunned even city officials.
Roads, Bridges and a New Pedestrian Crossing
City administrator Steve Griffin outlined the transportation centerpiece: a third southbound lane on Alabama 59 from Coastal Gateway Boulevard to Fort Morgan Road, paired with plans for a new pedestrian bridge spanning the Intracoastal Canal near Lulu’s and connecting near Tacky Jack’s. A $21.7 million RESTORE grant will help cover part of the roadwork.
Other projects include extending Waterway East Boulevard to link Alabama 59 south of the airport with Cotton Creek Drive and adding a new airport entrance, realigning East Canal Road to remove a dangerous 90-degree turn at Old Highway 59, widening Baldwin County 6 West with turn lanes, walkways and bike lanes, and rebuilding Waterway West Boulevard to eliminate a hairpin turn near Plash Island while raising the roadway against flooding.
A Justice Center, Fire Station and Two New Parks
The plan also funds a new justice center to replace the police station now 38 years old, a northwest fire station, and improvements to the Beach Walking District aimed at making the tourist core more walkable with additional on-street parking.
Parkland is on the way as well: a 120-acre Coastal Gateway Community Park and a 53-acre Laguna Cove Park on Little Lagoon that will add public beach access.
Paying for It
The financing consists of a $150 million Truist Bank loan at 2.34 percent and a $47 million SouthState Bank loan at 2.4 percent. Craft said officials moved quickly to lock in rates because a one-point increase would have cost the city an estimated $24.4 million more over the life of the loans. Upcoming lodging tax increases — 2 percent that fall and another 1 percent in 2023 — along with existing sales and property tax revenue are expected to cover the projected $13.5 million annual debt service.