The City of South Fulton Public Facilities Authority and the City Council approved a $96,285,000 revenue bond Thursday to finance construction of a police headquarters and a fire training center, awarding the sale to Truist Commercial Equity Inc. and approving an intergovernmental agreement to back the debt.

City Manager Subadan read a memorandum into the public record saying the city and Regions Bank were unable to reach acceptable financing terms for the projects and that staff recommends moving forward with Truist as the next-best bidder. "The city of South Fulton and Regions Bank have been unsuccessful in reaching favorable or acceptable terms regarding funding for the forthcoming police headquarters and fire training center and headquarters," Subadan said.

Bond counsel Doug Selby told the authority and council the Truist offer carries a 4.63% interest rate, a 20-year maturity and is prepayable beginning in year five with no prepayment penalty. Selby also said the parties negotiated an additional option allowing the issuer to prepay up to 10% of outstanding principal each year during the first five years without penalty. "Truist has an interest rate of 4.63%. Remember, it's prepayable in year 5 and thereafter with no prepayment penalty," Selby said. "Every year during those first 5 years, you can pay up to 10% per year of the outstanding principal balance with no prepayment penalty."

Selby and staff described why Regions did not proceed: Regions reportedly preferred a different issuer and declined the transaction because it wanted the city to use the Urban Redevelopment Agency (URA) rather than the Public Facilities Authority. Selby said using the URA would have required a blight finding under Georgia law for some of the project areas; the city manager said she did not want to pursue a blight declaration in neighborhoods that include high-value homes. Selby also said the city remains within its previously stated millage cap. "We still have the 13.469 ... cap. We're borrowing the money underneath that cap," he said.

Formal actions: At the special Public Facilities Authority meeting the motion to approve the bond resolution and related intergovernmental agreement passed unanimously, recorded as 5–0. Later at the City Council special-called meeting the council approved the resolution and intergovernmental agreement by a unanimous roll call recorded as 7–0. The resolution authorizes the PFA to issue revenue bonds titled "Public Safety Facilities Project, Series 2025," in the original principal amount of $96,285,000 and establishes funds and accounts for deposit of bond proceeds.

The city attorney, bond counsel and financial advisor were all present for questions during both meetings. Staff indicated the bond documents and the intergovernmental agreement were available for council and public review. The council requested no additional conditions on award; councilmembers who asked questions were told staff would provide further details as needed.

Next steps: the approved resolution and intergovernmental agreement will be available in the city records; the transcript shows staff and counsel present to assist with closing and to respond to follow-up questions. The city did not provide a construction timeline, contractor information or a final financing schedule in the recorded discussion.