Canton Council OKs resolution to pursue revenue bond for downtown fire station

The Canton City Council on Sept. 18 voted unanimously to authorize staff to pursue financing for the renovation and rehabilitation of the downtown fire station, a project city financial advisers estimate at roughly $8,000,000.

Davenport & Company financial adviser Doug Gephardt told the council the city and Cherokee County have an agreement for fire and emergency services and that the county currently holds about $2,200,000 in fire impact fees earmarked for the project. Gephardt said the remaining financing need would be met through an intergovernmental revenue bond issued by the Canton Building Authority or, alternatively, a direct bank loan. “The city is looking to finance a new fire station downtown at an approximate cost of $8,000,000,” Gephardt said.

The proposed structure would allow bond proceeds to be used first for construction; any remaining impact fees would be applied to debt service. Gephardt described a 20-year amortization with three years of interest-only payments and said the council’s preference for prepayment flexibility led staff to pursue bank-placement options in the short term. He said the plan assumes impact fees are the primary source of repayment but noted the city would pledge its full faith, credit and taxing power as security, meaning the general fund could be liable if impact fees fell short.

City attorney/staff (Mister Ingram) emphasized the contingency: “We don’t control impact fees. It’s all contingent upon development,” he said, adding that the city is negotiating with the county to dedicate all future fire impact fees to this project and to include reimbursement terms if the city fronts funds in earlier years.

Councilmembers asked about cost overruns and timing. Gephardt said the $8 million figure is a conservative high-end estimate based on a 90% construction estimate, and staff committed to provide final construction bids. Officials were told the first debt payment is anticipated in October 2026 (fiscal year 2027) and that estimated annual debt service, once amortizing, is roughly in the low six-figure range depending on final borrowing and interest rates.

The council unanimously approved a resolution authorizing staff, Davenport & Company and bond counsel to proceed with issuing an RFP and pursuing financing; the Downtown Development Authority will transfer title of the project property to the Canton Building Authority before final bond action. Council members were told a first reading of the bond resolution is expected in early October, with formal approval on Oct. 16 and closing anticipated Nov. 18, 2025.

Next steps: staff will distribute an RFP to local, regional and national lenders, evaluate bids and return to council with a recommendation on the final structure, interest rate and repayment schedule.