It's finally happening: The city of Palm Coast is set to break ground on a new City Hall next week.

The City Council on Tuesday unanimously approved the guaranteed maximum price of $6.6 million the city will pay for the building, which will be built on city-owned land at Town Center.

If the price of the building exceeds that amount, the construction management company will be responsible for the overage. If the final price comes in under budget, then the city and construction management company would share the surplus.

City Councilman Jason DeLorenzo said Tuesday that he likes the number of Flagler County-based companies that will most likely contribute to the construction of the facility.

"They received several bid packages, and it looks like about 50 percent of the bid packages will be from local or market-area contractors," DeLorenzo said.

The City Council in November 2013 unanimously approved to move forward with construction of a new headquarters.

The city's headquarters have been located in a shopping plaza, named City Marketplace, for almost six years. By the time the new City Hall is ready, the city will have been in City Marketplace for seven years, said Beau Falgout, Palm Coast's city administration coordinator.

A groundbreaking ceremony will be held at the new City Hall site, at Palm Coast's Town Center, at 5:30 p.m. Wednesday, Oct. 29.