City Manager Patrick Draper said the city was paying almost all the interest on an interest-only loan for the property.
In accordance with a proposed agreement with the St. Clair County Commission, the city will agree to assume a $4 million loan that was used to help build the new St. Vincent’s St. Clair Hospital on Veterans Parkway.
In return, the St. Clair County Commission will deed the 21 acres, where the old hospital and the St. Clair County Department of Human Resources building are located, to the city.
The city will deed the building, which currently houses the Greater Pell City Chamber of Commerce, to the St. Clair County Commission.
City officials said the Chamber of Commerce will move into the current library after work is completed on the city’s new library.
City officials plan to build a recreation/aquatics center on the hospital property and renovate the former DHR building for the city’s new public library.
City officials say the old hospital would be torn down.
Mayor Joe Funderburg said the Chamber was notified of the plans, as well as the Pell City Library Guild.
In other matters Thursday night, the council:
• Tabled the renewal of a contract with Taylor Power Systems for the annual maintenance of the city hall generator.
• Authorized the city manager to expend funds, not to exceed $110,000, to commission an environmental study and site design plan to improve access to the St. Vincent’s St. Clair Hospital and the Colonel Robert L. Howard State Veterans Home on Veterans Parkway.
• Authorized the city attorney to provide a letter stating the Second Street Plaza Development, which developed the former Food World property, is in compliance with a tax abatement agreement with the city, as long as 40,000 square feet of the development is used for retail.
• Tabled a contract agreement with a company to build a new city website until bids are taken.
• Granted an extension for sewer work for a company. The company will have until March 15 to complete the contract work.
• Approved to adjust utility bills for water customers who continue to receive discolored water.
• Voted to go into executive session to discuss pending litigation.
Contact David Atchison at email@example.com.