December 22, 2016
The Johns Creek City Council by a 7-0 vote authorized the Mayor to execute a purchase and sale agreement for the acquisition of an existing office building in Technology Park to consolidate City Hall functions with the headquarters for public safety personnel as well as the City’s Municipal Court.
Consolidating City departments into one location will improve efficiency in communications, management, and overall operations.
“The City Council and I are very excited about this purchase,” said Mayor Mike Bodker. “This will be one of the most significant moves we have made in the City’s 10 years of existence, and one that we believe can propel us to even greater heights in terms of service to the residents of Johns Creek.”
With the purchase of an existing office building, the City will realize significant savings by avoiding the costs associated with new construction as well as converting rent payments to developing equity in a facility the City will own. The City plans to renovate the 75,000 square foot building, utilizing 10 years of operating experience to create a citizen centric facility.
The City Council recognized that a predictable debt service schedule through ownership provides greater financial certainty compared to short term lease agreements with annual escalators. The conversion of rent payments to pay for ownership (inclusive of maintenance and operations) will result in a projected net savings to the City on an annual basis.
Other advantages of the consolidation of staff include the opportunity to create a centralized Emergency Operations Center that is co-located with the City’s high tech Traffic Control Center. The new facility also offers increased efficiency of space via a combined Courtroom and City Council Chambers.
The building, which is located at 11360 Lakefield Drive in Technology Park near LifeTime Fitness, sits on 7 acres and comes at a cost of $9,409,125 or approximately $125 per sq. ft. The city considered other options for purchase, but nothing was available that met its space requirements. The City has a 30-day due diligence period followed by a 15-day window to close the transaction.
Currently, City Hall and the Fire Department headquarters staffs are divided among two floors in approximately 36,000 sq. ft. of office space, while the Police Department and Municipal Court are in a separate 20,000-square-foot facility with an identified immediate need for an additional 10,000 sq. ft. of space.
With the purchase, the City will also control approximately 340 parking spaces adjacent to recently acquired land for a linear park.
The City expects to close the transaction in February, 2017. The exact timeline for the move has yet to be determined.