Dalton council approves $1 million loan to housing authority for Walton Fields Phase 1 with deed to secure debt

The Dalton mayor and council voted Monday to loan $1 million to the Housing Authority of the City of Dalton to support Walton Fields Phase 1, formalizing terms for repayment and securing the loan with real property.

City Administrator Andrew Parker presented details: the loan will be structured as a promissory note bearing 1% annual interest. The first interest payment is deferred to Oct. 1, 2028, at which time a $30,000 payment will be due. Thereafter, an annual interest payment of $10,000 will be payable on Oct. 1 each year through Oct. 1, 2045, when the full principal balance will be due.

The promissory note includes a deed to secure debt on an 8.6‑acre tract owned by the housing authority at the northeast corner of Fields Avenue and Dozier Street. The note allows for early repayment of principal; if the housing authority repays principal early pursuant to a related loan with Walton Communities, half of any such payment would be remitted to the city, the administrator said.

Parker told council the loan is permitted under the Georgia Constitution for lending to other public entities and that the repayment schedule is intended to allow construction to finish before payments begin. Council approved the resolution by voice vote.

No members of the public spoke against the loan at the meeting. City staff and the city attorney were available to answer council questions, and city officials said they would finalize loan documents and the deed to secure debt after the vote.