The Atlanta City Council has authorized the transfer of City Hall East to the Atlanta Development Authority to facilitate the sale of the building to a developer.

The Atlanta Development Authority (ADA) operates as the official economic development agency for the city of Atlanta.

The 2-million-square-foot City Hall East building is located at 695 Ponce de Leon Avenue, N.E. in the historic Old Fourth Ward and is the largest building in the city.

Built in the 1920s, the building was purchased from Sears and in the early 1990s and housed the police, fire-rescue and parks, recreation and cultural affairs offices.

On Sept. 30, the city signed a letter of intent with developer, Jamestown Properties for the purchaser to pay $27 million for the property, with $15.5 million to be paid to the city at closing.

The transfer to ADA allows the city’s economic development arm to benefit from an additional $11.5 million, plus interest, over time, if and when the development reaches certain economic thresholds. The deal is also contingent on the purchaser’s ability to received historic tax credits.

Jamestown Properties plans to invest $150 million to develop the building with about 20 percent small and mid-sized retail space and about 40 percent each residential and office/commercial space.