South Alabama Mega Site Remains Unsold Nearly a Decade After Baldwin County Purchase
The South Alabama Mega Site remains undeveloped nearly 10 years after Baldwin County bought it, with about $15 million in related debt still outstanding.
BAY MINETTE, Ala. — Nearly 10 years after the Baldwin County Commission bought the land for the South Alabama Mega Site, the property remains undeveloped, and county officials say they intend to sell it to developers.
Purchase and debt
According to County Treasurer Kimberly Creech, the commission unanimously approved paying $25,976,500 to the Crosby Trust and $6,312,500 to Catawba Land Company LLC for the property in 2012.
Creech previously reported that the county had paid $8.5 million on the debt but still owed $23,775,798. That balance was divided between a $10,350,000 debt tied to the county’s 2014 General Obligation Warrant and $13,425,798.99 remaining on $15 million the county borrowed from its own oil and gas trust fund.
At that time, the county was making annual payments of $392,790 on the warrant, scheduled to rise to $762,790 starting in 2020, and was paying $1,297,508 a year to the oil and gas trust fund.
Current figures
Baldwin County Budget Director Ron Cink said that beyond the purchase price, taxpayers have put $150,000 more into the site for improvements to access and visibility.
About $15 million of the debt remains outstanding, Cink said: about $8 million owed to the county’s oil and gas trust fund from the general fund, plus about $7 million in general obligation warrants. Including interest, Cink said, the total investment is about $48 million.
“There’s always that possibility the next enhancement is a vertical enhancement, but we’re hopeful somebody else will do that investment,” Cink said. He said the county intends to sell the property to developers rather than lease it.
Marketing the site
The site is marketed by the Baldwin County Economic Development Alliance, a nonprofit organization that receives hundreds of thousands of dollars a year from the County Commission and local cities. BCEDA President and CEO Lee Lawson has described the site as “shovel ready.”
Last year, Lawson reported 55 to 60 “real inquiries” from potential developers over the previous eight years. He recently said economic development officials nationwide are seeing more interest in shovel-ready mega sites, and that continued investment in the South Alabama Mega Site will cut time and extra costs, making future development more attractive to investors.
State tax credit
The Growing Alabama Tax Credit program, managed by the Alabama Department of Commerce, gives private companies and individuals a dollar-for-dollar tax credit for investing in preparation and infrastructure improvements at industrial sites.
“This opportunity further strengthens Baldwin County’s place as Alabama’s leader for incoming business investment and growth and can lead the way in making paradise even better,” said Baldwin County Commissioner Joe Davis.
