Colbert shelter pays off building loan
TUSCUMBIA — Nearly 30 years after the Colbert County Animal Shelter borrowed money to build its current facility, the shelter has officially paid off the loan ahead of schedule.
Shelter Director Corey Speegle said the decision will free up about $20,000 a year which had been going toward loan payments, allowing the shelter to focus on muchneeded improvements to the aging building.
According to USDA Rural Development Area Specialist Douglas Shortt, the shelter took out two loans on April 10, 1997, to finance construction of the building. One loan was for $320,000 with a 5% interest rate, and the second was for $50,000 with a 4.875% interest rate.
Both loans were set up with 30-year repayment terms.
Shortt said the total construction project cost $370,000. The second loan covered a cost overrun during construction.
Speegle said he paid off one of the USDA loans ahead of schedule last year. He recently received approval from the shelter’s board to pay off the remaining loan early as well.
The money used for the final payoff came from several sources, including adoption fees which had accumulated through the shelter’s payment processor and money available in the building fund.
Speegle said the board had discussed investing some of the money in certificates of deposit but decided paying off a loan with a 5% interest rate made more financial sense.
“I got to looking at it and thought, why not just pay the loan off and save that 5%?” Speegle said.
The building fund receives appropriations from Colbert County and the cities of Muscle Shoals, Tuscumbia and Sheffield. Speegle said those appropriations will continue even though the loan has been paid off.
The extra money will now be used to improve the nearly 30-year-old facility.
Speegle said several doors need replacing because they are rusting and no longer close properly. Each replacement door is expected to cost between $800 and $1,000. He also hopes to repair damaged insulation in the ceiling and complete other cosmetic improvements.
“We’ve been chipping away at it a little at a time,” he said.
He said the shelter may eventually seek a small loan to renovate parts of the building but has no plans for major construction.
