Dunwoody City Council approved at its Aug. 8 meeting to buy a new City Hall building on Ashford-Dunwoody Road. The city will take out a $9.9 million loan to cover the purchase price and renovations.
Dunwoody city officials were able to negotiate knocking off $200,000 of the purchase price for the new City Hall at 4800 Ashford-Dunwoody Road after it was determined the building needed some $650,000 in repairs, including a new roof. The final cost of the building is $8,050,000.
The deal the city worked out has the Georgia Municipal Association actually purchasing the building and then leasing it to the city until the debt is paid over 15 years.
State law allows for such funding to allow city governments acquire real and personal property at lower interest rates, explained Finance Director Chris Pike in a memo to council members.
Excluding an interest-only payment in 2017 of $110,960, the annual debt is estimated to start at $491,400 in 2018, escalating roughly 6 percent annually until 2029, with a balloon payment of $1.9 million due in 2031, Pike stated.
After 10 years, the city can refinance or pay off the loan without penalty.