DAPHNE — Tameron Honda — which is being built at the Eastern Shore Park at the intersection of U.S. Highway 90 and Alabama Highway 181 — wants the city to increase the amount of their bond from $8 million to $10 million.

The project has cost more than planned, according to a Tameron representative.

The City Council on Monday voted 3-1 to allow Tameron Honda to apply for a “Go-Zone” bond. Council members John Lake, Ron Scott and Council President Greg Burnam voted in favor of the motion. Councilman August Palumbo was the lone dissenting vote. Absent council members included: Bailey Yelding, due to the passing of his wife; Cathy Barnette, whose husband is in the hospital; and Regina Landry, who is on vacation.

A Go-Zone bond, Gulf Opportunity Zone Bond, was created by the federal government to support the rebuilding of economies that Hurricane Katrina and Rita impacted.

These bonds have special tax advantages and exemptions, according to Palumbo.

To enter into a bond through the city, there must be an inducement agreement, according to Palumbo.

A bond is paid back through a portion of sales tax of the business in that area; should the sales tax not generate enough, the developer must cover the cost, Palumbo said.

“The city gives up a fraction of sales tax and that has not been negotiated yet,” Palumbo said. “The fact that we do not have an inducement agreement in place; we should know what the inducement agreement is before we authorize the amount they can go for.”

The Renaissance Center LLC also wants to enter into limited obligation bonds.

The bonds would help cover costs of public and commercial improvements, such as a traffic signal and storm drains, according to Terry Ogletree, a developer with the project.

These bonds would cover off-site and on-site improvements, according to Ogletree.

Developers plan to build and pay for a detention pond if Malbis donates the land and the city of Daphne helps get the permits, according to Ogletree.

Developers are asking for a bond of $7.5 million to $8 million.

Lake was appointed to the Renaissance Cooperative District board of directors.

“This is an important project; it would be good to have a liaison to go between the project and the city,” Councilman Ron Scott said.

A capital improvement district allows the city to form a special district for developers to borrow money at the city’s bond-rating; it allows the developer to get a low-interest rate.

In other business:

•Robert Colville, a boy scout who worked on a butterfly garden in Gator Alley, received a certificate of appreciation from Mayor Fred Small

•Council adopted an ordinance to rezone property located on the southeast corner of the intersection of Johnson Road and U.S. Highway 98, from R-2, medium density, single family residential district to B-2, general business district

•Council passed a motion to give $1,000 to the Dixie baseball team to help offset costs of their trip to the state tournament.

•Council passed a motion to allow the recreation board spend money for a toposurvey.