It’s official: American Canyon has bought a new City Hall.

On Monday city officials will celebrate the $6.9 million purchase of the two-story Cabernet Village building on Highway 29 near Napa Junction. The city will spend an estimated $2 million to turn the empty second floor of the 25,400 square-foot-building into a working City Council chamber and office space by the summer of 2008.

“It’s all done,” Mayor Leon Garcia said this week. “We have a building.”

Garcia voted with the majority of the City Council to purchase the building, in part to have city staff, now scattered at different sites, work under one roof. The city officials want to have the first room designed to serve as City Council chambers.

American Canyon’s public meetings, including City Council meetings, take place at a recreation center multi-purpose room, where the city also hosts dance and exercise classes.

Close to 50 city employees will eventually work at Cabernet Village.

The current City Hall, where most of the administration officials are based, is in a former bank building at 300 Crawford Way. Planning and building staff are housed in rented space nearby, in Canyon Plaza.

Public works staff work at the corporation yard on Wetlands Edge Drive.

The 14,000 square-feet on the second floor features windows with views to the neighboring hills, Highway 29 — and the Wal-Mart Supercenter under construction at Napa Junction.

The city will also occupy a 600 square-foot suite on the first floor.

The building was completed in March 2006 and has several other tenants, none of whom will be displaced by the city.