Florence closes on arts center, tennis complex financing

FLORENCE — Florence Mayor Stephen J. Wukela signed off Monday on a $7.5 million loan that will go toward funding two major city projects: the Francis Marion University Performing Arts Center, already under construction, and a municipal tennis complex.

The performing arts center will be located at the corner of South Dargan and Palmetto streets in Florence, while the tennis complex will be located along North Cashua Drive.

City officials secured the loan funding through BB&T with a fixed annual interest rate of 3.79 percent. The financing proceeds will be used for the city’s $3 million capital contribution to the performing arts Center and funding of $4.5 million will be used for the tennis complex.

Repayment of the financing will be funded by revenues generated by the city’s hospitality fee and a $1.5 million grant reimbursement from the Drs. Bruce and Lee Foundation to be paid to the city over a three-year period for the tennis complex, according to a city press release.

BB&T Senior Vice President Andy Smith said the bank was able to loan the money to the city, despite the current economic crisis facing the banking industry.

“We’re evaluating good credit the same way we always have,” Smith said. “We’re obviously very careful, but the city of Florence has fantastic credit and we have a long history of working with them.

Wukela said the loan was indicative of not only Florence’s good credit history, but also the willingness of BB&T to work with the city.

“The city of Florence is a fantastic risk,” he said. “We have been very prudent with how we spend money and with our tax base ... our credit is extremely good and that shows in our ability to borrow money in this current economic climate.”

The city plans to turn the projects into features that will draw in visitors from across the state and the country.

The performing arts center will serve as an instructional space for FMU’s fine arts programs and a venue for national traveling music, dance and theater productions. With soft costs and such alternative projects as the sculpture garden and the amphitheater, the project cost will come to $32,881,000.

The base cost of the project is being paid for with money donated by the Drs. Bruce and Lee Foundation, the state of South Carolina and the city of Florence.

The alternative costs are being paid for by private donations, one of which was a $325,000 donation by BB&T in September toward the amphitheatre. Another gift was given earlier in January by Florence resident Adele Kassab toward the sculpture garden.

The center is set to be completed in fall 2010.

City leaders said the tennis complex will be similar to Freedom Florence. It will feature 24 courts and include a tennis activity center with outdoor decking, as well as serve as the home base for the Florence Tennis Association. They said they hope it will open in spring 2010.

The expansive parcel of land was donated to the city by Dr. Eddie Floyd, and city leaders say it will be more than accommodating for tournaments of any size. Nucor Steel also has agreed to provide three acres nearby for the public access road, a portion of which has been completed.

Leaders said they hope the tennis complex, the performing arts center and other new projects will bring a spirit of revitalization to the city and will attract visitors to the Pee Dee.

“It’s the financing of those two major projects that we know will improve the cultural life in the city of Florence as well as recreational life, and improve tourism and bring in more tourism dollars,” Wukela said.

— Morning News Staff Writer Nick Hilbourn contributed to this report.