Orange Park approves $14M loan for Johnson Slough bridge project

The Orange Park Town Council voted 3-2 on Oct. 6 to approve a $14 million loan and a nearly $14 million construction contract for the Johnson Slough bridge replacement project, advancing a long-planned effort to address aging infrastructure and roadway flooding.

The council authorized a $14,049,750 loan through Webster Public Finance Corp. and approved a guaranteed maximum construction price of $13,999,561.67 with Superior Construction Company Southeast.

Mayor Winnette Sandlin, Vice Mayor Doug Benefield and Councilman Randy Anderson supported both measures. Councilmen Ken Vogel and Glenn Taylor opposed them.

The project will replace infrastructure at three crossings: Nelson, Plainfield and Nelson South.

Loan carries 4.84% interest rate

The financing, authorized under Resolution No. 24-26, carries a fixed interest rate of 4.84% over 20 years, with interest-only payments for the first two years and no prepayment penalty.

The town targeted Oct. 22 for closing, according to the council's Oct. 6 draft meeting minutes.

Finance Director John Villanueva and Mickey Johnston of Public Resources Advisory Group presented the financing terms.

The town plans to repay the debt using stormwater fees, gas taxes and infrastructure sales tax revenue rather than property taxes.

According to projections presented at a Sept. 8 special meeting, annual debt payments would initially total approximately $1.1 million beginning in fiscal year 2028-29.

A $7 million Florida Department of Environmental Protection resiliency grant is expected to reduce the outstanding principal in the third year, lowering projected annual payments to approximately $563,000.

Those figures are projections and depend on the timing and application of the grant.

Construction awaits environmental permit

The construction contract remains contingent on approval from the St. Johns River Water Management District.

Town officials expected final comments from the district by Oct. 11, but the council had not received final permit approval when it voted.

Town Attorney Lawsikia Hodges raised concerns that the construction agreement lacked an explicit provision allowing the town to terminate the contract if the permit was denied.

Council members directed Hodges to prepare a separate resolution addressing that issue.

Public Works Director Kyle Croce and Brian McGarity of Superior Construction presented the construction price.

Benefield expressed confidence in the decision following years of studies and said he hoped the improvements would reduce roadway flooding and benefit nearby properties.

Taylor, who opposed the financing and construction measures, said he supported the project's purpose but preferred a lower cost.

Council approves additional contracts

In other business, the council unanimously approved a $155,000 contract with Synagro South for sewage sludge dewatering and hauling during fiscal year 2026-27. The amount reflected a 3% increase attributed to fuel surcharges.

Members also voted 5-0 to authorize up to $90,000 for sodium hypochlorite from Odyssey Manufacturing for water treatment.

A $38,271.90 agreement with Raulerson Paving to mill and resurface Hurley Street between Plainfield Avenue and Smith Street passed 3-2, with Anderson and Vogel opposed.

The council also voted unanimously to remain independent of the Clay County Community Development Block Grant program for fiscal years 2027-29, preserving the town's ability to apply separately for federal and state Small Cities grants.

Council members deferred a decision on an engineering agreement associated with a potential $13.2 million state loan for hurricane resiliency improvements to sewer infrastructure damaged by Hurricanes Helene and Milton. The item was moved to the Oct. 20 meeting.

The council also rescheduled its November meeting from Nov. 4 to Nov. 5 at 6 p.m.