Proposed authority could borrow money for new City Hall, rent it to city —
The Fayetteville City Council on Jan. 3 adopted a resolution asking the local legislative delegation to support the creation of the Fayetteville Public Facilities Authority (PFA) which would serve as a financing and ownership partner for major development and provide the ability to lease space for extended periods.
Action to create the authority requires legislative action in the 2019 legislative session. The resolution will be forwarded to members of the local legislative delegation, said City Manager Ray Gibson.
Presenting the idea, Gibson said, “The authority will serve as a governmental entity that has the ability, through contractual agreements, to lease space for terms of over one year. The authority would serve as a financing and ownership partner for major city developments, such as the new City Hall and Park Space project. The Georgia Constitution, while limiting the ability for governmental entities to contractually commit to the expenditure of funds beyond one year, does allow for governmental entities to enter into contractual obligations with other governmental bodies for the performance of governmental services. Such financial commitments can be for up to 40 years.”
Gibson said the PFA will serve as a partner with the city, whereby the city can agree to pay rent to the authority for the use of public facilities such as the City Hall building.
“The Authority is then able to use the contractual pledge of the future rent payments to raise capital, through the issuance of bonds, which capital is then used for the acquisition, design and construction of public facilities. This arrangement also keeps the ownership of these facilities within public entities,” Gibson said.
The PFA requires a 5-person board appointed by the council. That board will consist of Fayetteville residents and can include members of the City Council. Terms will be for one year.
Peachtree City has maintained a PFA for a number of years.