Matt Lasley | GC News-Gazette The Leitchfield City Council voted to take out a 25-year loan on the new city headquarters Monday night.

Matt Lasley | GC News-Gazette

The Leitchfield City Council voted to take out a 25-year loan on the new city headquarters Monday night.

The city of Leitchfield on Monday voted to take out a 25-year loan to finance the purchase and renovation of the former Rite Aid building to be used as the new city government headquarters.

The Leitchfield City Council, during its regular meeting Monday night, heard and approved the first reading of an ordinance authorizing the city to receive a maximum of $5 million in general obligation bonds to pay for the project.

Chip Sutherland, of wealth management service Hilliard Lyons, informed the city that the project is not estimated to require the full $5 million to complete, and the loan is scheduled to be repaid over a 25-year period on a 4 percent interest rate.

The ordinance, prepared by attorneys from Louisville firm Rubin & Hays, also permits the city to levy a tax in an annual amount sufficient to repay its loan in the event that the city is incapable of doing so. However, attorney Christian Juckett said this does not ensure that the city will set a new tax, noting that the city is in a good enough financial position that it should be able to repay the loan without issue.

The bonds are tentatively scheduled to be sold on Nov. 27, and the city will look to close on the bond deal during the second week of December.

The city is purchasing the former Rite Aid building, located on 515 South Main St., for $2.85 million from the Shepard Family Partnership, of Illinois. The building itself is valued at $4.6 million by the Grayson County PVA office.

In other business:

•The City Council authorized interim Parks & Recreation Director Tammee Saltsman to have the playground structure at B.G. DeWitt Park replaced. A replacement structure has already been ordered at the cost of $18,999 from Miracle Recreation Equipment Company.

•The City Council approved a proclamation designating the week of Oct. 15-19 as Head Start Awareness Week in Leitchfield, in recognition of Breckinridge-Grayson Programs, Inc. Head Start and Early Head Start.