The City of Fort Walton Beach has secured financing for the Preston Hood Athletic Complex expansion, selecting Webster Bank from seven competing lenders to provide a $7.5 million loan at a 4.08% fixed interest rate.
- The City Council voted 6-1 Tuesday to approve Resolution 2026-02, which authorizes the loan agreement and allows construction costs already incurred to be reimbursed through the debt issuance.
Finance Director Nicole Nabors said the city’s financial advisor, PFM Financial Advisors, distributed a request for proposals on Nov. 17, 2025, to local, regional and national financial institutions. The city received seven proposals from Capital One, Hancock Whitney, Origin Securities, Regions, Truist, Trustmark and Webster Bank.
“Based on PFM’s review and discussions with us and also with bond counsel, it was determined that Webster Bank provided the best combination of the interest rate and terms most favorable for the city,” Nabors said.
The 4.08% rate is lower than the 4.5% the city had estimated in October when the council first approved the project. The rate remains valid through Jan. 30, eliminating the risk of rising interest rates between now and the loan closing date, according to city documents.
Nabors said the loan amount of $7.5 million exceeds the $7,059,312.75 construction contract awarded to Gum Creek Farms in October.
- “I wanted to put a little bit of cushion in there just in case there’s change orders, which we all know usually happen, and to be able to furnish the expansion itself,” she said.
The loan will be repaid over 15 years with an estimated annual debt service of $710,000. The Tourist Development Council has committed to providing $400,000 annually toward those payments, with the remainder covered by $300,000 that became available after the city paid off an irrigation loan early in 2025.
Councilman David Schmidt asked whether the agreement with the Tourist Development Council remains in place.
“We’re still good with the deal with the tourist development department on helping fund this?” Schmidt asked.
“Yes,” Nabors replied.
Schmidt thanked city staff and Councilman Bryce Jeter, who serves on the Tourist Development Council, for working with the county to secure funding.
- “Any time we have an opportunity to expand parks, it’s always a good opportunity and at this level – really excited about it,” Schmidt said.
Jeter said the project has been years in the making.
“This is a great project that’s been a long time coming, so thank you for staying with it, all of staff,” Jeter said. “It’s been many, many years, but it’s a great project that I’m glad to finally see happening and it’s gonna be great for the community.”
The 12-acre expansion at 203 Hollywood Boulevard will include a 2,000-square-foot recreation operations building, restroom facilities, multi-purpose turf fields, pickleball courts and more than 200 parking spaces. The site previously served as the city’s field office complex.
Councilman Payne Walker cast the lone dissenting vote.
Mayor Nic Allegretto said when the project is complete and the city installs a commemorative plaque, it should recognize the council members from years ago who voted against selling the property.
“I think that was a really important vote, which I was on the wrong side of in retrospect,” Allegretto said. “There were a lot of people that saw it all the way through, and otherwise without that, we wouldn’t have that property to make these fields.”
