Development Authority of the City of Brookhaven Skyland Office Building Purchase By: Marie Garrett Ed WallSkyland Property * 44,000 Sq. Ft. Office Building on 5.3 acres — Purchase Price $2,790,000 — LOI with State of Georgia with a closing on 1 November 2015 — Annual Lease Revenue from State of $223,200 — State has committed to two years (6/30/17) BoaktianghGeorgia Supreme Court Cases Related to Statutory Development Authority * Odom vs. Union City (1978) = Can only do projects for private projects — Governmental projects don’t qualify as it does not give enough promotion of “trade, commerce and industry” * Green County Development Authority vs. State of Georgia (2015) = Directly on point as to a Charter School furthering the public purpose of “promotion of trade industry and commerce...” — Local residents challenged the validation — Trial Court said the deal as structured did not work + Green County was going to levy a tax and pay a $14 million bond issue for a Charter Academy + At the end of the term of the bond, the Academy would own the building for $1 + Testimony at the Trial Court was that furthering education would improve the economy + Tria Court said that was not particular enough — Supreme Court affirmed the Trial Court ruling and would not validate the bonds satan 3Uses of the Skyland Building * Charter School ¢ Other business * Possible site of Future City HallStructure of Financing * Development Authority owns the building and sells tax-exempt Revenue Bonds * Development Authority leases the Building and land to Atlanta Prep Academy * Atlanta Prep Academy subleases to the State of Georgia * City of Brookhaven adopts an Intergovernmental Contract guaranteeing the Revenue Bonds — As long as the State of Georgia pays, the City will never have to pay anything BoolianSimple Purchase Numbers * Revenue Bond Size $2,880,000 * Term —17 years ° Estimated Interest Rate 2.8% * Annual Payments (16 — 33) -- $215,000Impact on City if Tenant defaults and no other tenants occupy building * 2015 Brookhaven Tax Digest -- $2,603,158,746 ¢ 1 mill equals $2,603,158 * Simple Purchase — 0.083 mills * This millage is outside — in addition to- the City’s Charter millage limitation of 3.15 mills BoaktianehTimeline * Projected Closing with the State of Georgia — 1 November, 2015 * TEFRA Hearings — 2 weeks * Validation Hearings — 3 weeks * Drafting of Documents — 2 weeks * Adoption by Development Authority and Mayor and Council — 1 week