The city of Dunwoody finalized purchase of 4800 Ashford-Dunwoody Road for its new City Hall today, Aug. 30.
The 45,000 square-foot building is the city’s first wholly-owned City Hall complex and was purchased for $8.05 million, according to a news release. The city has been leasing approximately the same amount of square feet at 41 Perimeter Center East to use as City Hall.
“This is a great day for all citizens of Dunwoody. We are the very proud owners of our own City Hall,” said Mayor Denis Shortal in a statement. “We purchased a fantastic building situated in a central location to serve the residents and businesses of our city.”
The closing documents were signed by Shortal and City Manager Eric Linton.
“The city plans to conduct minor modifications to the new building in the coming months to create a well-organized, efficient office space for the entirety of city staff, police department, municipal court, and City Council chambers,” states a press release.
The city plans to move in by March 2018 following the modifications.
Dunwoody City Council approved at its Aug. 8 meeting to buy the 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 after it was determined the building needed some $650,000 in repairs, including a new roof.
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.