Stonecrest’s URA re-approves bond resolution to finance purchase of Sears, Sam’s Club buildings

Plez & Mayor
Testingfg of Ads

Mayor Jason Lary and Deputy City Manager Plez Joyner

 

 

Bond sales stalled in March due to corona virus pandemic

 

The City of Stonecrest’s Urban Redevelopment Authority (URA) re-approved a resolution on June 24 to issue $5,410,000 in revenue bonds to finance the city’s acquisition of the Sears and Sam’s Clubs buildings.

The city was scheduled to sell the bonds on March 30, but the closings had to be rescheduled due to the COVID-19 pandemic.

“When the pandemic hit in March, we could not get a judge to validate the sales date for the bonds. We had to set new timelines and re-approve the bond resolution because our dates had expired,” said Deputy City Manager Plez Joyner.    

The new date scheduled to close on the bonds is July 15, Joyner said.  

Joyner said the city is getting a lower interest rate on the revenue bonds because interest rates around the country have fallen.

The URA will issue two revenue bonds, Series 2020A and Series 2020B. The Series 2020A tax-free revenue bond, with the principal amount of $3,195,000 for the Sam’s Club, will be paid in 20 years at an interest rate of 2.92 percent per annum. Previously, the city’s interest rate was 3.18 percent.

Joyner said the Sam’s Club building can only be used for government-type services due to its tax-exempt status and seller’s agreement with Sam’s Club. The city plans to house its new City Hall and other municipal services in the building once its lease is up at the 35,000-square-foot office spaces at 3120 Stonecrest Boulevard. The city is in the third year of its five-year lease. The Sam’s Club building has 131,000 square feet.       

The Series 2020B taxable $2, 215,000 bond for the Sears building and auto shop, will be paid for in 10 years at a rate of 3.04 percent per annum instead of  the 3.56 percent interest rate the city had in March. The city is continuing to seek tenants for the Sears building but has said it is considering an institution of higher education, MARTA police precinct, and film industry.  

Joyner said the city has set Dec. 31 as the new deadline to pay off its Tax Anticipation  Note (TAN).  The TAN was used to cover the purchase of the city’s two buildings until the bonds are sold to repay the debt.    

Mayor Jason Lary said he is pleased with the new deadlines set, adding that the city is solvent and remains in good financial standing.

“We are financing this bond at interest rates that are lower than we originally planned. We will be paying about the same amount to own two buildings as we are currently paying to rent a relatively small space in one building,” said Lary. “We are laying a foundation that will immediately help Stonecrest and pay significant dividends to future generations. We are making history.”

 Lary serves as chair of Stonecrest’s URA. URAs are authorized by statutes of the Georgia Constitution to issue revenue bonds to prevent and eliminate pockets of blight. Stonecrest’s URA is a separate entity from the City Council. although it is comprised of the mayor and council members. Four members of the agency met and unanimously passed the bond resolution on June 24.

The meeting was held virtually and livestreamed for the public through the city’s web site at stonecrestga.gov.  

On Common Ground News


3 comments

  • Timothy G. Merridith

    June 29, 2020 at 9:07 am

    How about stop bringing all of these fast food chain restaurants and bring in better eateries like what neighborhoods like Virginian Highland, Old Fourth Ward Cabbage town and etc we shouldn’t have to leave our neighborhood to eat out good this been going on too long

    Reply

  • S

    June 29, 2020 at 3:27 pm

    I hate that the COVID pandemic has caused problems for Stonecrest and other retailers around the US. Even if the peoblem didnt exist, malls were becoming extinct. These days,people are putting their bucks online,consignment shops or outlet malls like Tanger Outlet and to top it off Stonecrest Mall was/ is dealing with bankruptcy. Not exactly great news for the South DeKalb community* sad face*.

    I can’t say what would go right in place of Sears .Though I understand that were going through some hard times,the choices being considered to fill the void of the store Im not crazy about. It would make the mall look crappy. Things like that belongs on the outside.

    At one point,Costco’s was being discussed to replace Sams Club. Though it cant go in Sams,Im hoping that it be reconsidered from both the city/ Costco’s and for space to be found for it. If not,I hope some reputable grocery store ( Kroger’s,Publix,Aldi’s ,Lidl’s) can come there as another one of them are needed.

    Supposedly, a developer was going to build a ” Atlanta Sports City”
    in Stonecrest,which turned out to be a farce. After that fiasco,a deal for an amphitheatre, hotel and civic center was coming to fruition. So far,no word about the project but the unforeseen circumstances of COVID may have delayed those plans.

    I would love for Stonecrest to prosper. It is said that things happen for a mysterious reason but at the end,it mostly be for the best. Hopefully, this will be the story about Stonecrest.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

Testingfg of Ads

About us

On Common Ground News is published daily by On Common Ground, Inc (OCGNEWS.COM). The newspaper serves DeKalb, Gwinnett, Rockdale and Metro Atlanta.

The opinions expressed by writers and contributors are not necessarily those of the publisher or the newspaper’s advertisers.

No portion of this newspaper may be reproduced in any form without the written permission of the publisher.

We reserve the right to reject material and advertisements we deem inappropriate.


On Common Ground News
P.O. Box 904
Lithonia, GA 30058


(770) 679-5607

editor@ocgnews.com


Latest News

Select list(s) to subscribe to


By submitting this form, you are consenting to receive marketing emails from: On Common Ground News, 1240 Sigman Road, Conyers, GA, 30012, https://www.ocgnews.com. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact