Signed, sealed and delivered — Crossville’s indoor recreation and aquatic center is a done deal.
“It’s historic, monumental and a big day for the city of Crossville,” declared Crossville City Council member Art Gernt minutes after he and his fellow councilmen unanimously approved various legal documents bringing the project to fruition Tuesday morning.
“I’m just glad to be a part of it,” he added.
City officials and many of their constituents have dreamed of this moment for more than a decade. It’s become reality through a unique partnership between the city, its designated Sports Authority and the Putnam County YMCA.
The $38 million three-story facility at N. Main St. and Livingston Rd. will have a competition-size pool as its centerpiece. Other amenities include a gymnasium, multi-purpose rooms for classes and events, and an indoor track.
A groundbreaking ceremony is tentatively planned for the end of October.
“It’s exciting, folks,” said Mayor RJ Crawford. “We’re about to break ground on something that has been discussed for, from what I can tell, way back in 2006.”
The YMCA has contracted to operate the center. Its construction will be funded with issuance of tax-exempt bonds.
Mandy Perhay, CEO of the Putnam County YMCA, attended the meeting via Zoom. She shared in the officials’ excitement.
“What an amazing legacy you’ll leave in Crossville and Cumberland County,” she said. “We’re excited to get in there and serve that community.”
“The bonds’ proceeds will be securely held by an indenture trustee to prevent the proceeds from being used by anyone for any purpose other than building the planned facility,” said a Wednesday afternoon press release issued by the three entities. “The bonds will not be redeemable for five years after their date of issue.”
City Council members have said repeatedly that no property tax revenues will be used to pay for the facility, nor will any property tax rates be needed to build it.
Though the resolutions for agreements were approved unanimously, one council member expressed hesitancy after the votes were taken.
“I just hope we don’t fall on our sales tax,” said council member Mike Turner.
Officials have said city’s sales tax revenues have increased substantially with new businesses moving into the area. Buc-ee’s, a Texas-based mega convenience store on Genesis Rd., has particularly been identified as a source of boosting that revenue.
“I believe we can withstand a severe economic downturn like we had after 2008,” said council member Rob Harrison.
Harrison said he has done research on the city’s sales tax revenues over the past 36 years.
“Projecting that on out, and looking at a worse case, I believe we can handle it,” he added with an offer to show the numbers to Turner “and anyone else, too.”
Crawford said there is a lot misinformation being spread in the public about the center and how the city is paying for it.
“Not the Crossville Chronicle or 3B Media, but some other news agencies that are not necessarily informing the public on information that’s public knowledge,” he said. “By the way, this is information that can be pulled from the city’s website that’s been audited by the state.”
Crawford looked to City Finance Director Nathan Clouse to confirm the city’s current general fund debt is $6 million.
“Not $26 [million] that is part of the sewer fund which is a separate fund that cannot be touched and cannot cross between our general fund,” the mayor said.
“That is correct,” Clouse replied.
“When people say that we’re going to raise our debt to $76 million, what they’re doing is they’re incorporating our water and sewer fund, which is not a part of the general fund, correct?” Crawford asked.
“That’s correct,” Clouse responded.
Larry Kidwell, bonding agent for both the city and Sports Authority, confirmed that municipal bond interest rates are now at 3.75%-4.25%.
Crawford gave props to former mayors and City Councils of the past 10 years for strengthening the city’s finances to make construction of the facility possible through the use of sales taxes.
“If I’m not mistaken, based on the public records that can be pulled, we went from a negative $5 million in that position before Mayor [James] Mayberry took over on average, over the previous 10 years,” he said, mentioning his mayoral predecessor. “These current 10 years we’re at $15 million-plus in that position — tax position.”
Crawford then named a list of businesses that have located in Crossville over the past 10 years who have helped increase sales tax revenues.
“We’re in a position now that we’ve never been in,” the mayor said. “It has to do, I think, a lot with what Mayor Mayberry and those councils forward have done.”
Harrison pointed out that the city coffers have almost $25 million in reserves. Crawford added the city’s finances impressed Upper Cumberland Development District officials who worked with the Council on strategic planning in August.
“We have very little debt,” Crawford said. “We have amazing revenue coming in, predominantly coming from sales tax. And our property taxes are one of the lowest in the state. So, I will say it again. Property tax is off the table. We’ve got to that point now that we can pay for it.”
Gernt and Harrison said the city’s strong financial position allows it to afford services like the new recreation center.
“We could operate a year without any kind of income,” Harrison said, to which Gernt added, “Zero.”
The city has a bond meeting with Standard & Poor’s from 10 a.m.-noon Oct. 8. Kidwell said he expects a bond rating to be back by mid-October.