On Monday, the Atlanta City Council approved legislation that calls on the Development Authority of Fulton County to cease acting as the issuer of lease purchase taxable revenue bonds for property within Atlanta’s city limits.
The legislation was introduced by Post 2 At-Large Council Member Matt Westmoreland. It states that tax abatements within the City of Atlanta should only come from Invest Atlanta and work towards the goals of the Economic Mobility, Recovery and Resiliency Plan, which had been adopted earlier this month by the council.
“Tax abatements should be used to support projects committing to deeply affordable housing and projects in underserved neighborhoods in need of middle-wage jobs, grocery stores, and other amenities,” said Westmoreland. “Offering tax abatements in thriving parts of town discourages development in communities that need it the most. And it withholds needed funding for everything from police and fire services to street improvements and parks upkeep. Making up for that lost revenue falls to Atlanta homeowners and renters.”
The issue has risen to the fore as properties in particularly busy parts of town, along the Beltline for instance, have repeatedly received tax credits in some form – to the tune of nearly $170 million in abated property taxes over the next ten years. City Council Members and residents are beginning to question whether these in-demand properties, which would almost certainly find a developer with or without tax credits, are the right candidates for this kind of assistance.
There is some feeling among sources that Invest Atlanta got wise to the situation and developers realized they could move down the road to the Fulton County Development Authority to try their hand there. The county development authority, unlike Invest Atlanta, is largely made up of members from outside Atlanta who may not be as familiar with some of the property issues in town. They may want to be seen as giving a boost to Atlanta but the development continues to be crammed into a very limited area of Atlanta, leaving a lot of the city feeling overlooked or wondering who is really benefiting.
Under Georgia law, communities can create local development authorities to be used as financing mechanisms to further economic development initiatives. The Development Authority of Fulton County currently facilitates economic development initiatives within a jurisdiction that encompasses all of Fulton County, including Atlanta. The nonbinding resolution from the city council will be forwarded to all Fulton County Commission members and board members of the Development Authority of Fulton County. The Development Authority would not be legally required to abide by the resolution but if they choose to continue issuing these types of deals, they would be explicitly going against the city’s wishes at this point.”
To read the full resolution, see here: http://atlantacityga.iqm2.com/Citizens/Detail_LegiFile.aspx?Frame=SplitView&MeetingID=3193&MediaPosition=&ID=22417&CssClass=
