The Urban Redevelopment Authority approved the issuance Tuesday of two 30-year bond issues totaling $6.4 million, said Bob Fox, economic development director for Kennesaw.
The $38 million downtown mixed-use development project, at the corner of Watts Drive and Main Street, will include more than 250 “luxury” rental apartments, as well as 11,000 square feet of ground-floor retail space.
Behind the development will be a five-story public parking deck, adding at least 300 public parking spaces downtown.
The spaces in the deck will be split between the apartment renters, diners, shoppers and Kennesaw residents needing to park near City Hall.
This combination of public and private use means one bond issue for $3.65 million will be taxable and the other $2.83 million bond issue will be tax exempt, said Fox.
The bonds will be used to purchase the parking deck after it is built by Atlanta-based South City Partners. Then the city’s Urban Redevelopment Authority will become the title holder for the parking deck.
Construction is expected to last between 15 and 18 months and be completed by summer 2015.
Kennesaw City Council voted unanimously Feb. 17 to enter into an intergovernmental agreement and issue more than $6 million in industrial-development revenue bonds.
The Urban Redevelopment Authority has the legal and financial ability to issue such bonds on behalf of the city, without a vote of the residents, to “assist with the expansion of local industry.”
General obligation bonds are different in that they require voter approval in a public referendum.
Debt service on the new revenue bonds will be paid for by court service funds the city accumulates annually, Fox said.