The Alabama Power Company Speculative Building Program was established in 1991 to advance the construction and availability of quality buildings within a community.
Benefits and Uses
The construction, acquisition and renovation of buildings.
Applicants must be IDBs, IDAs, municipalities or counties. For an application to be considered, the following conditions must exist:
- The building must be located in an industrial park encompassing a minimum of 75 acres.
- The park must be subject to a development plan.
- Restrictive covenants must exist for the entire park.
- Suitable paved roads and all other appropriate infrastructure must serve the site.
- The ratio of the building site to the building must be 5:1 or greater.
- The applicant must have developed a marketing plan (including budgets) for the promotion of the building.
- An environmental study must be completed showing the site is not in a flood plain and that there is no violation of environmental or hazardous waste laws.
- The applicant must own the property in fee simple title.
- The applicant must provide an acceptable takeout agreement.
Terms and Conditions
Alabama Power Company has established a limited fund from which its Economic and Community Development Department is authorized to purchase industrial development bonds issued by a local industrial development board (IDB), industrial development authority (IDA), municipality or county. The amount cannot exceed 70 percent of the structural cost of the building and must be secured by a mortgage of the building site and building in favor of Alabama Power Company. Such bonds will be due and payable upon the sale or lease of the building or upon the expiration of 48 months from the date of the first disbursement, whichever occurs first. In addition, the applicant must provide Alabama Power Company with a satisfactory takeout agreement, such as a bank loan commitment, which will assure repayment of the loan at the end of the 48-month period in the event the building is not sold or leased.
Each community’s application will be evaluated on a case-by-case basis, which will provide flexibility in regard to the size and type of building. Whether Alabama Power Company enters into a loan agreement depends upon the applicant meeting the minimum basic requirements listed above, upon the availability of funds from a limited source, and upon the priorities determined by an Alabama Power Company Executive Review Committee. As bonds mature, additional commitments from the revolving fund will be made.
Applications will be reviewed in order of receipt.