The Atlanta Journal-Constitution
Development agency clashes over tax breaks
Some question if city is giving away too much as panel OKs incentives.
The board of Atlanta’s economic development agency approved more than $17 million in tax incentives for several developers on Thursday, but tax breaks for a pair of projects at the former Turner Field caused a clash among board members, with one saying the agency needs to re-think its public investment strategy.
The board of Invest Atlanta narrowly approved a nearly $2.6 million tax break for a 680-bed, $69 million student housing project called Aspen Atlanta. It will rise in a parking lot on Ralph David Abernathy Boulevard, across from what is now called Georgia State Stadium.
The board also approved a separate, nearly $2 million tax incentive for a $50 million project nearby that will include a small office building, retail, restaurants and 129 apartments along Georgia Avenue.
The votes spurred a broader conversation among board members after the meeting about whether the city is seeing enough bang for the taxpayers’ bucks.
Board member Julian Bene said the city is seeing impressive job growth and development, fueled in part by the city’s tax incentives. But overall, the property tax digest has largely stagnated since 2010, and he suggested the city might be giving away too much.
“That is not the kind of thing we should be seeing with the economic growth we’ve had,” Bene said. “We need to grapple with this.”
Bene, often a lone critical voice on the Invest Atlanta board, said just starting development at the former home of the Atlanta Braves isn’t a good enough pub- lic benefit. The combined abatements only reserve a total of 18 units in the 129unit apartment project as affordable for residents making 80 percent of the area median income. In that light, the tax breaks for the two projects come to about $277,000 per affordable unit over 10 years.
“The public benefit I’m hearing is new development in areas south of I-20,” Bene said. “I don’t think that is enough on its own.”
Others on the board disagreed, saying denying the tax breaks put the project at risk.
A recent investigation by The Atlanta Journal-Consti- tution found that the city of Atlanta and county govern- ments in Fulton, Cobb, Gwin- nett and DeKalb doled out $30.7 million in property tax incentives in 2016 to major projects and marquee companies in the name of economic development.
Those firms owed $72.6 million in local taxes after the tax breaks were taken into account. But some crit- ics have questioned the need for incentives amid the economic boom.
The board also approved an estimated $5 million tax incentive for a new office tower by developer Port- man in Midtown and a $7.6 million tax break for the redevelopment of Colony Square.
Though arguably the city’s hottest neighborhood, neither Midtown project attracted the sort of debate over incentives during the meeting as the two projects south of I-20. need to keep in mind prom
Vice Chairwoman Conises for revitalization after stance Barkley-Lewis said the 1996 Summer Olympic the tax breaks are necessary Games were never fulfilled. to kick off the Turner Field A no vote, he said, “puts redevelopment. this entire project at risk,”
Banks, she said, “are not and would further hamper lining up to lend” money ability to recruit additional to the development team investment there. led by Atlanta-based Carter. The private development
Georgia State University around Georgia State Staacquired the stadium and dium has been seen as one certain parcels earlier this of several potential sites that year, with a development state and local leaders could team led by Carter obtain- pitch for Amazon’s second ing other land, including a North American headquarnumber of key parking lots ters project. in the area for a mixed-use A number of residents project. in the surrounding neigh
Two Carter principals borhoods complained they signed personal loan guar- were not notified of the antees to secure financing – Invest Atlanta meeting until a not uncommon practice in the last minute and that they real estate finance – to help haven’t been included in kickstart development. planning for development
“The first money going in the area. Public cominto these neighborhoods is ment also was held after very, very difficult to get,” the votes and after Reed she said. left the meeting.
“It seems like a no-brainer “Low income residents we would develop these who have kept these comneighborhoods,” she said munities alive for 50 years of private sector interest in aren’t invited to the table,” the project. But the neighsaid Avery Jackson, of Peoborhoods aren’t affluent as plestown. other parts of the city, makOthers said development ing development there a bigcontinues to bring the real ger risk in the eyes of lenders. risk of displacement for long
“This is not a no-brainer term residents, who could at all,” she said. be pushed out because of
After the vote, Carter rising property values. President Scott Taylor“How are we going said the tax deal “sets the to remain in the city of stage for the first phase of Atlanta?” asked Peothe Summerhill project to plestown resident Alison begin.” Johnson. “Where is our
“We are in a very challeng- return on investment?” ing lending environment In April, Georgia State and and projects like Georgia developers reached a comAvenue might not be finanmunity benefits deal with cially feasible but for proneighborhood associations grams like the bond for title,” to address systemic floodTaylor said, referring to the ing, provide jobs and edulease-purchase bond mechcation programs, and set anism Invest Atlanta and aside at least 10 percent of other such authorities uses new housing for low-income to grant tax breaks. Atlantans.
Mayor Kasim Reed, who But a separate group of chairs the body, said the neighbors that sought a comdebate over affordability is munity deal hasn’t been sat“necessary and appropriisfied. ate.” But, he said, members