The cost of acquiring Chevron Corp.’s former headquarter building and converting it into New Orleans City Hall will cost $11.9 million, according to Mayor Ray Nagin. Financing will include $3.8 million in proceeds from bonds issued in 1999, 2003, and 2007.

Nagin said the move would pay for itself in about five years. He said the city would save $45 million over 20 years through reduced operational costs and lower rents.

The mayor said the city would pay $1.35 million a year less in utility, maintenance, and repair bills with the renovated facility, and would save $920,000 a year in rent by moving city offices now located in the Amoco Building and other facilities.

The city has signed a purchase agreement with Chevron to buy a three-building complex in downtown New Orleans that includes a 21-story office tower, an eight-level garage, and a two-story annex. The city has until Aug. 20 to complete inspections of the buildings and to secure financing.

Purchase price for the facility is set at $8 million. Additional costs include $450,000 in moving costs and $486,000 for expenses associated with the purchase.

The city said it would pay for the most of the renovation effort with $2.9 million it is due from the Federal Emergency Management Agency for damages to the current city hall from Hurricane Katrina in 2005. FEMA would also provide $1 million of the purchase price.

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