Key points:
• Mediation between the cities of Sandy Springs and Atlanta regarding water system control, hinging on infrastructure maintenance and service costs, are set to begin Sept. 17.
• Sandy Springs Mayor Rusty Paul said the city could use eminent domain to take control of its aging water system if negotiations with Atlanta officials fail.
• Construction on the second phase of the City Springs downtown district could start next year, as the Sandy Springs City Council gets closer to selecting a development partner.
Sandy Springs Mayor Rusty gave the first State of the City address of his fourth and final term on Sept. 15, sharing the latest about water service negotiations with the City of Atlanta and teasing partnerships to expand the City Springs downtown district.
Paul, the driving force behind City Springs, which officially opened in spring 2018, won reelection last fall after changing his mind about another run. He shared updates on nearby redevelopment and transportation projects, but led with the city’s aging water system.

Water negotiation history
On Thursday, mediations are set to begin with Atlanta officials over control of the Sandy Springs water system. Atlanta provides water for Sandy Springs and owns the water system.
“We’ll find out how serious the City of Atlanta is in working with us to solve the most basic, important asset that any government can provide, which is water,” he said. “We are determined that we shall operate the water system in this town, no matter what it takes, no matter how long it takes.”
Sandy Springs residents have fought Atlanta over maintenance of its water system and rates since before the city incorporated in 2005. Paul said his optimism about reaching an agreement wavers, and Thursday is important.
This summer, Paul said the city wants to purchase the water system from Atlanta and is willing to risk funding. During the Sept. 15 Sandy Springs State of the City, he said he is optimistic that an agreement can be reached and that the city can avoid using eminent domain.
“If we don’t go that particular route, what we call the service delivery strategy, then we will be in court to try to take that system over,” Paul said. “We are determined to get and provide, and make sure we have a secure and reliable water system in this community.”
End-of-year deadline
State law requires Fulton County and its 15 cities to finalize all intergovernmental agreements on public services by the end of the year, with an Oct. 5 submission deadline.
“We have hotels that can’t flush their toilets above the third floor at certain times of the day,” Paul said. “We have hospitals without enough water pressure at certain times of the day … challenges with leaks, and there has been no investment in upgrading it.”
Both municipalities can lose state and federal funding without an agreement. Paul said losing state and federal funding would impact Atlanta more than Sandy Springs,
Despite his criticisms, Paul said he has a good relationship with Mayor Andre Dickens, who he said recognizes the problem both leaders inherited.
“They don’t have the resources to come out here and do the repairs; I know that, he knows that,” Paul said. “The question is, are they willing to give up revenue that they get from us without putting things back … and we have a serious problem.”
City Springs development
As soon as next year, Sandy Springs residents could see construction on the south side of Mount Vernon Highway just south of City Springs, on the second phase of the downtown district.
“We are in the final steps of choosing the development partner,” Paul said. “We’ve had some good meetings; we’ve got some great proposals.”
The second phase of the Sandy Springs downtown district, called City Springs 2.0, has stalled due to financing difficulties and market constraints. Construction was expected to begin two years ago.
This year’s opening of Summit Coffee at the Williams Payne House and the ongoing construction of the multi-use community, Hillcrest, are examples of private investment near city hall.
After another round of meetings, Paul said city leaders hope to have a developer selected.
“We hope to have a hotel over there; we need a hotel to get this campus to work the way it’s supposed to,” he said. “Beautiful, owner-occupied housing on part of it, some rental housing on another part of it, and some connectivity.”

The concepts also call for more restaurants and retail, limited office space, additional greenspace, and shared parking facilities.
“This is the heart of the city,” Paul said. “This is where we build what I call the connective tissue of community. We want to take that to the next level. Council is doing a great job.”
