LAURINBURG — BB&T has finalized the $9.1 million loan needed to build a new City Hall and police station.
Work on the 19,900-square-foot complex could begin this week.
The loan, finalized on Thursday, will be paid back over the next 15 years at an interest rate of 2.6 percent. The city expects to pay between $800,000 and $900,000 a year.
The money to payback the loan will be pulled from three city funds — with 67 percent coming from the General Fund and 33 percent being split evenly between the Electric and Sewer Funds.
According to the city, the police department section of the building accounts for well over half the total cost, because specials walls and specs are needed for security measures.
The city should be able to pay back the loan early with no early repayment fees after April, 21, 2025, officials said. The early repayment must be of the total owed amount and no less.
City officials will meet this week with Ediface, the construction management firm, to review the finalized construction schedule.
The city plans to demolish the current municipal building and the Barrett administration building to make way for the new structure. That work is expected to cost aboutn $91,000.
But before the Barrett Building can come down, the city must treat the asbestos on some of the outer paneling. The mold removal is required by the state for any demolition of a building, said Laurinburg City Manager Charles Nichols.
According to Nichols, the building’s construction should be completed in late 2018 or early 2019, depending on the weather.
Laurinburg City Council and the North Carolina Local Government Commission both unanimously the city gaining the laon approved the municipal building’s construction, which will serve law enforcement and administrative staff.
“Now that this hurdle has been crossed, the one thing we have to do on the city side is remove asbestos on the side of the Barrett Building,” Nichols said. “There is not much asbestos… the removal will be less than a day’s work.”
The city manager also plans to to update council on the project during the October regular council meeting tonight at 7 p.m.
The meeting will take place at the Laurinburg Municipal Building at 303 West Church Street.
Reach Nolan Gilmour at 910-506-3171