The City Council voted unanimously Monday to approve the purchase of the building it has rented for the past 14 years to house city offices.
The structure at 1327 Foothill Blvd. will cost about $1 million. The transaction is expected to save the city about $2 million in rent increases over the next 30 years.
To make the purchase, underwriters will invite private investors to bid for “certificates of participation"--loans with tax-exempt interest rates of 6.6% to 6.8%, to be issued in increments of $5,000.
Because state law prohibits cities from taking out a mortgage, loan payments on the City Hall will be made to the nonprofit La Canada Flintridge Public Improvement Corp., which will lease the building until the city has paid off the debt. Yearly payments will be between $92,000 and $98,000, according to City Manager Gabrielle Pryor and David Siebert, city treasurer.
Escrow will be completed on Dec. 31.