(Atlantic) The Atlantic City Council passed a resolution on Wednesday to enter into a land acquisition loan agreement to borrow money in the principal amount of $700,000.
In April, the Atlantic City Council agreed to purchase 41.54 acres of farmland for housing development for $20,000 per acre, or $850,000. The property is located northeast of 22nd and Olive Streets, surrounded by the residential property to the north, west, and east, and immediately northwest of the Atlantic High School.
Atlantic City Administrator John Lund says the land will be financed through a general obligation debt. He says this is a 20-year loan agreement at five-hundred-thousand dollars at an interest rate of four percent.
Lund plans to invest the purchase balance using American Rescue Plan funding. The debt service payments will come from the Local Option Sales Tax Progress. He says this will allow the city to continue to take advantage of other economic activity.
Lund says Atlantic’s housing stock is not competitive, with only 12.6 percent of the city’s housing stock built since 1990, with 34.9 percent built before 1930. He says a community that cannot provide new housing, diverse housing options, building places, and an adequate housing inventory cannot expect to attract large-scale or even smaller, higher-paying employers.
The public hearing on the proposed debt issued for this property is set for September 21, 2022.
