The Holts Summit Board of Aldermen Monday night decided to use a lease-purchase agreement to acquire a new building to be used as the new Holts Summit City Hall.
The board completed action on a 10-year lease-purchase agreement with a finance firm to occupy a 5,000-square-foot building near the current City Hall.
Holts Summit City Administrator Brian Crane said the newly acquired two-level building was occupied previously by Mid-Missouri Inventory Service, Inc. The building and business is owned by Kenneth Berkel of Berkel and Berkel LLC of Holts Summit.
The lease-purchases agreement gives the city the option of buying the building at the previously agreed purchase price of $310,000 at any time during the next 10 years.
The lease-purchase agreement approved Monday night is with Greyhawk Commercial Finance LLC.
Instead of financing the building with bonds, Crane said the city is financing the building purchase through Missouri Public Utility Alliance. That group is using Greyhawk Commercial Finance LLC to finance the structure at an annual percentage rate of about 3 percent.
The board amended its current 2012 budget to permit the addition of $160,000 to the budget for the building lease-purchase agreement and to transfer funds to make up for revenue shortfalls in the operation of the city's animal control shelter.