Mayor Jimmy Lunsford on Wednesday signed documents on behalf of the City of Troy for a $3 million line of credit offered by Region's Bank.

The city council had approved the measure at its June 10 meeting in order for the city to move ahead with the purchase of property for the city's new industrial park.

"The loan will allow us to move forward with the industrial park purchase, and will be repayed when we issue general obligation bonds later," Lunsford said.

The line of credit, Lunsford said, is for up to $3 million, although the exact amount that the city will be used is still up for consideration. The council will also use the proceeds to finance other projects that have yet to be prioritized.

"The council will prioritize these other capital expenditure projects," said City Clerk Alton Starling. "The loan is really called a 'bond anticipation loan'… when (the other projects) finalized, we will do the bond issue and those proceeds will be transferred to the note."

The council awarded the loan bid to Region's after it offered a 1.55 percent rate. SouthTrust's bid was 2.01 percent; Troy Bank & Trust 3.6 percent; Colonial Bank's bid was just over 4 percent.