DDA asks Chamblee council for up to $300,000 short-term loan to cover City Center costs

The Downtown Development Authority (DDA) told the Chamblee City Council it needs a short-term loan to cover debt-service and operating costs tied to recent City Center work. "the D D A is requesting a short term loan of up to $300,000 to cover debt service and operating expenses," the DDA chair said, adding the DDA expects to repay the loan from proceeds of a planned sale in July or August.

Council members responded with repeated calls for clearer communication and a documented contingency plan. The DDA chair said the scale of legal and closing costs was not fully apparent until the closing on the Pierce property in mid-December and that the monthly interest-only debt service on two loans amounts to "slightly less than $30,000 a month." Council members said they were concerned about being "caught off guard" and asked for regular DDA updates and a paper trail so the council can evaluate risk before approving any loan.

City staff said the city attorney will draft an intergovernmental agreement (IGA) if council wishes to proceed and floated possible terms: a 5% interest rate and $50,000 monthly installments up to the $300,000 cap. The DDA chair outlined short-term and long-term contingencies — short-term borrowing to carry obligations through 2025 and refinancing or sale of additional properties if the primary sale does not close — but acknowledged uncertainty and said additional discussions would be required if the sale is delayed beyond expected timelines.