A study conducted by the Georgia Tech Center for Economic Development Research (CEDR) reports that SunTrust Park and The Battery Atlanta generate a total of about $18.9 million annually for Cobb County Government and the Cobb school system.
The figure includes $3.98 million that is returned to Cobb County Government and $14.93 million that is generated annually for Cobb County Schools over the next 20 years.
In a presentation to Cobb County government, business and community leaders yesterday, Sharon Mason, president and CEO of the Cobb County Chamber of Commerce, said the report “shows the public and private investments that led to SunTrust Park and The Battery Atlanta are paying off for the community.”
“The Braves have delivered on their promise to reshape the economic destiny of Cobb County, and, in doing so, they’ve managed to create an entirely new, innovative way for municipalities and local governments to partner with sports franchises,” Mason said. “This report clearly and definitively shows what we already knew to be true, and that’s the public and private investments that led to SunTrust Park and The Battery Atlanta are paying off for the community.”
SunTrust Park is a partnership between the Cobb-Marietta Coliseum Authority and the Braves, with Cobb County contributing $300 million to the project and the Braves investing $372 million.
Because the Ballpark is owned by the county, it generates no property tax revenue, but does generate sales tax dollars, a portion of which are allocated to Cobb Schools.
In total, the Braves and Cobb are investing more than $700 million into The Battery Atlanta, a mixed-use development that was an essential component in the deal since it generates property and sales taxes, which contributed to Cobb’s decision to invest in the ballpark.
The report says that after less than two years of operation – including a first season in which The Battery was only partially open – there already is a strong return on those investments.
In addition to the direct impact the projects are having on the community, CEDR experts were able to use a previously defined area of influence for the Cumberland CID to help gauge the “Halo Effect” SunTrust Park and The Battery Atlanta are having on the surrounding region.
Property Value Increases = $4.5 billion, “Halo Effect” = $1 billion in new development
This halo effect is a huge contributor to Cobb County’s investment, as the report notes that property values in the area have increased by approximately $4.5 billion since 2013, when the ballpark was announced, to present day.
The report says there is about $1 billion in “Halo Effect” planned development unrelated to the stadium or mixed-use development in the Cumberland CID, including 1,400 new rooms in six hotels, and construction or plans for six new Class A office buildings in the CID since the ballpark’s announcement was made.
* CEDR analyzed the fiscal impact of SunTrust Park and The Battery Atlanta alone, and then analyzed the additional impact the project has had on the surrounding area through the “Halo Effect,” which increases annual, average net fiscal impact by an additional $4.0 million for the Cobb County Government and $8.7 million for Cobb County Schools.
The researchers’ takeaways include:
* The combined annual net fiscal impact of SunTrust Park and The Battery Atlanta to the Cobb County Government is effectively revenue neutral on an average annual basis.
* The combined annual net fiscal impact of SunTrust Park and The Battery Atlanta to Cobb County Schools is $6.3 million per year.
* When considering the Halo Effect, the annual, average net fiscal impact increases an additional $4.0 million for the Cobb County Government and $8.7 million for Cobb County Schools.
* All told, the combined impact of SunTrust Park, The Battery Atlanta and the resulting Halo Effect to the people of Cobb County is $4.0 million for the Cobb County Government and $14.9 million for the Cobb County Schools, for a total of $18.9 million per year.
“We wanted to answer a key question in this fiscal impact analysis: “Would the level of guaranteed private investment in The Battery Atlanta change the calculus for the public financing of SunTrust Park?” said Dr. Alfie Meek, the executive director of CEDR.
“Our report demonstrates that the answer to that question is yes. The models we used and the assumptions we made were conservative, but the results were clear as, from a purely fiscal standpoint, Cobb County is better off because of SunTrust Park and The Battery Atlanta.”
To develop the report, CEDR staff coordinated with the Cobb County Tax Assessor’s office to access the most up-to-date financial data. Additionally, the staff conducted several interviews and briefings with representatives from the Cobb County Chamber of Commerce, Cumberland CID, Cobb County Tax Assessor’s office and the Atlanta Braves.
View the complete fiscal impact report HERE
Tal Wright is a staff writer for InsiderAdvantage Georgia
