The City of Greensboro was approved to take over the 100,000-square-foot building, valued at $20 million and located at 320 Federal Place, for just $1.
However, Assistant City Manager Mike Speedling said mold was discovered in seven separate locations inside the building.
The non-black mold was found by leaky windows and had spread into the wallpaper in some areas, Speedling said.
The structure was previously expected to cost $300,000 a year over a three-year period to make renovations, including cleaning tasks, window repairs and new carpeting.
Half of the renovation money was already in the police budget, while the other half will come from money seized during drug arrests, Speedling said.
It's unclear as to whether the mold discovery will affect the renovation budgeting.
Speedling says the city still believes it's a good deal in comparison to paying for an entire new building.
The police department had hoped to move into the building by the end of the year.
One of the major benefits of having the larger building was attaining space for an in-house evidence facility, which would save time during investigations.
Speedling said there will be a groundbreaking ceremony in September.
Elon University also applied to take over the structure, but it was awarded to Greensboro.
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