June 20, 2017
The City of Johns Creek has approved a series of real estate agreements to set into motion an accelerated timeline for a move into a new City Hall.
The City purchased 7 acres and an existing 75,000 square foot office building (with 340 parking spaces) in February, 2017 for the purpose of establishing a permanent location for a Johns Creek City Hall and Public Safety Complex. The exact location is 11360 Lakefield Drive, Johns Creek, Ga.
The City currently leases space in two separate buildings. The move to a consolidated facility will ultimately save taxpayer funds and provide an efficient building for City Hall, Police, Fire and Courts to serve the citizens. The location backs up onto a 20 acre linear public park the City will be developing as early as 2018.
The new City Hall location was purchased with several tenants leasing space from the previous owner. The leases for the building were set to expire in 2019. The City currently leases two buildings with leases expiring in 2017.
The City intended to extend current leases and begin renovations on the new City Hall in late 2019 and move in to the facility in 2020. Shortly after the City purchased the building, the main tenant, Movius Interactive Corporation expressed a desire to downsize their footprint and terminate their lease early. This provided the City the opportunity to accelerate plans to occupy the building.
The City Council tonight approved a “Termination Agreement” with Movius Interactive Corporation that concludes a mutual early termination of the lease agreement by August 1st, 2017 in exchange for a lump sum payment to the City for $1,426,435. In consideration of the accelerated timeframe, the City will compensate Movius Interactive Corporation up to $100,000 for moving and transition costs.
Mayor Mike Bodker is grateful to Movius Corporation for their contributions to the business community here in Johns Creek.
“While the City could have kept the lease in place and collected rent through 2019, the City is eager to move ahead with plans to consolidate City functions into one facility and save taxpayer funds,” said Bodker. “This agreement is beneficial to both parties and the City Council and I thank Movius Corporation for coming to terms in a timely manner.”
The conclusion of this lease agreement makes it possible for the City to establish a schedule for renovating the City Hall facility and conclude existing office leases to accommodate this move. Earlier this month, the City agreed to a short term extension for the Police Department Headquarters that will end in December 2018 and allows for the City to extend the leases further for four 6-month options, if needed.
The current lease for City Hall expires September 30, 2017 and the City was able to negotiate a reasonable extension of its existing lease for one year with four 6-month options the City could exercise if necessary. However, a difficult decision was made to leave 12000 Findley Road at the conclusion of the existing lease to move into a less expensive facility at 10700 Abbotts Bridge Road while construction on the new City Hall is performed.
This decision will net a savings of between $150,000 and $650,000 (depending on when the City moves into the new City Hall) compared to the cost of extending the current lease agreement, including costs to transition to the new facility.
City Council and other public meetings will be held at the current Police Department facility Court Room at 11445 Johns Creek Parkway until the new City Hall is completed. The Police Department and Court will remain in its current facility until the new City Hall is ready.
Renovations of the new City Hall facility are expected to take 12-18 months to be complete.