PELL CITY – The Council appears split as to whether to purchase the former Avondale Mills plant property, expressing concerns about the city’s financial future.

“This property is where this community says the library needs to be,” Councilman Donnie Guinn said at Thursday’s council work session. “I will support the purchase of the property.”

Guinn said although it is nice to have a new library, it could take years before a new library is actually built.

“Realistically, it’s not going to happen in the next two to three years or more,” he said.

Mayor Bill Hereford is expected to ask the council to vote on whether to purchase all or part of the former Avondale Mills property in Pell City at Monday night’s council meeting.

The price tag ranges from $2.2 million for the Avondale Mills well site along U.S. 231 and the Avondale Mills plant site located between U.S. 78 and Cogswell Avenue, or $2.47 million for the entire Avondale Mills properties in Pell City.

“I really hope we will agree to buy the Avondale Mills property,” Hereford said at Thursday’s work session.

Although Guinn said he supports buying the Avondale Mills property, he worries about the city over-extending itself financially.

“Right now, we’re fixing to cap out,” he said.

Guinn said there are major paving projects needed throughout the city.

“We have major paving in the $1 million-plus range,” he said. “We can’t forget that, but where is that money going to come from?”

Councilwoman Dot Wood, who is also a real-estate appraiser, questions whether Pell City-Tifton Properties LLC, the owner of all the Avondale Mills property, is asking too much for the 28-acre plant site.

“If that land is so valuable, why hasn’t it sold in so many years?” she asked. “I’m not for buying it. We have so much debt, it concerns me.”

Pell City-Tifton Properties LLC bought all the Avondale Mills property in Pell City in 2007.

Councilman Greg Gossett said the city needs 15 new police cars that could cost the city a half-million dollars.

Gossett also said inexpensive water lines were installed along Golf Course Road and in the Seddon Shores community and those water lines need replacing with more durable ductile iron pipes.

“I can’t see spending utility money out of the 2006 bond,” he said.

Gossett said the city’s debt service could double in two years, from $3 million to $6 million.

Hereford said only within a few months the current mayor and council have incurred $23 million in debt, which does not include the Avondale Mills property purchase.

Hereford said the bond indebtedness by the city was necessary to meet a consent order agreement between the city and the Alabama Department of Environmental Management to eliminate major sewer overflows, to pay its share of the Coosa Valley Water Supply District surface water treatment plant project, and its support to the Alabama Department of Veterans Affairs Home/St. Vincent’s St. Clair Hospital projects.

“We have taken on a mighty big debt,” Hereford said. “But we did what we were supposed to do.”

Councilman James McGowan said he supports a new library site on the Avondale Mills plant property, but he does not support the purchase of the entire 28-acre Avondale Mills plant site.

“And another thing, it’s (the property) going to be clean before I vote to buy it,” McGowan said.

McGowan said Gossett has some valid points, saying it is irresponsible for the council to buy any property without an appraisal, geological survey and soil testing.

“There are a lot of other places where the library can go,” he said.

McGowan said the city could borrow money to buy a new library site, and he is not overly alarmed at the growing city debt.

“The city is in debt now, and the city will remain in debt long after we leave office,” he said.

Gossett expressed opposition at pulling bond money from the utility department for land acquisition.

He also said one of the reasons city officials say they are considering hiring a private company to run its water department is because the utility department temporarily borrows money from the general fund to pay utility bond debt.

Hereford said part of the money he wants to use for the acquisition of the Avondale property is from a 2006 bond issue secured by the city for sewer work in order to meet a consent order by ADEM to eliminate major sewer overflows throughout the city. A portion of the bond money was to help pay for the U.S. 231 bridge project, police cars, a fire truck and help pay the city’s share for the construction of the Fox Hollow lift station, as well as “to make other capital improvements.”

Hereford said there is $3.1 million left from the 2006 bond issue, and he has a written legal opinion from the city’s attorney that the bond money can be used for the Avondale Mills land acquisition.

The city recently secured $18.2 million from the state revolving fund loan program for sewer system improvements, but the city only has to pay back $12 million on that loan.

Councilman Donnie Todd said he is for buying the Avondale property, but there are issues that need resolving.

“I think they are issues that can be worked out,” he said.

Todd said by buying the Avondale Mills plant property, the well property price goes down, and the pending court case is resolved.

He also said soil testing of the former Avondale Mills plant site must be completed before the city buys the property.

“I don’t think we can buy it without testing,” Todd said. “I’m almost positive the bank would not finance it.”

The Avondale smoke stack and water tank also concerns him.

"In my opinion, the smoke stack would have to come down," Todd said.

He said the water tank's structural integrity may be sound, but it would have to be examined by a qualified engineer.

Todd said if the city has to remove those two structures, the cost of the property would have to be reduced to cover the expense.