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19 Comments

  1. 1

    Toff

    Bluff called. Go to Plan B.

  2. 2

    Guest

    If they want to develop it bad enough and have faith that it will be a thriving development then they will find away to get it done. NO to any tax help by the city/state.

  3. 3

    Matts

    Good. Though sucks for the small business renters in the area. See ya ethnically diverse Buford Hwy. Will miss you!

  4. 4

    Eddie E.

    Too bad we don’t have BANKS to support the whim of developers when the SCHOOL FUNDS are not available.

  5. 5

    Redevelopment Powers 101

    http://www.georgiacitiesfoundation.org/Resources.aspx?CNID=28756
    http://edckc.com/what-is-a-cid/

    The City of Doraville is simply creating a Community Improvement District to issue debt without tax payer consent and abate Integral’s property taxes in return for a 2.5% tax on ‘real property’. Those taxes won’t fund one inch of pavement or stormwater pipe outside of the TAD. Just because DCSD won’t help them, doesn’t mean they won’t pull out all the stops to issue debt for this utopian dream bubble.

    Why not send Integral to the capital markets everyone else has to use? Because then the small shops and boutiques created during Integral’s development couldn’t compete with existing stores. Integral’s new apartment complexes would be too expensive to compete with the more attractive options in Brookhaven and Chamblee, already benefitting from tax abatements.

    That’s right. Government Financed crony capitalism. Imagine you own a nail salon near the new Assembly Project. You have to pay property taxes through your lease payment.

    One of Gebbia’s Downtown District Authorities or a CID comes along. Then a new ‘salon’ opens up in the new Assembly offering massage, facials, hot oil treatment with all white attractive professionals…for less…because they don’t have to pay property taxes.

    Same racetrack. Different groove. Sustainable business models, albeit diverse business models, vanish under the banner of ‘economic development’. Jobs lost, not gained.

  6. 6

    RAJ

    I think HB658 is a single property owner(Doraville Sixty)CID. First one ever in Georgia. Bonding authority is limited to the valuation of the property, currently under litigation in DeKalb Superior Court. Note the Property owner has to decide to sign on to this deal since HE pays the agreed to additional taxes. A sweetener should be forthcoming from the State in the form of unlimited grants for infrastructure. Stay tuned, there’s more….much more!!

  7. 7

    Ncharlie

    How and will there be Marta connectivity?

  8. 8

    abmagic

    You miss a key feature of a CID – It REQUIRES property owner consent. 51% of land owners representing 75% of the land value must vote to approve the formation of the CID. And since they are essentially voting to tax themselves, why exactly, in your mind, should the funds be used outside of the CID? And for the record, the bonds issued that will be backed by the CID incremental tax will be issued by “the capital markets everyone else has to use”. I’m not sure anything in your entire post is based in fact, but I don’t have time to rebut the balance.

  9. 9

    publicprivateandalsononprofit

    RAJ–read para 3 carefully.
    Integral sign off? But, but, but the city says “all” commercial owners on the Assembly site have signed on. There are two and they are in.
    No car dealer also.

    So–are public officials allowed on the board by law? City buildings included. Also–there is one-only legislation associated with this. Goes somethingthing like–for any CID comprising a 149-acre site….

  10. 10

    JamesB

    MARTA is already there.

  11. 11

    Redevelopment Powers 101

    Because cars driving on public roads to and from the site, kids inside the apartments will use public schools and residents using the sewers won’t pay for the burden on the public systems, that’s why.

    My entire post is based on fact, past precedent and near certain pro forma forecasting. If Doraville issues a $238M bond, it’s a tax abatement, or at the very minimum, a high yield junk bond the voters don’t approve. Doraville will file bankruptcy within the next year.

  12. 12

    RAJ

    Is the car dealership in the map? The map was not available when I made the post, then the map was changed Monday night to include the I-285 RTW to facilitate the Express bus route from Dunwoody to the Doraville MARTA station; plans were not shown at the work session. Only the resolution was presented for a vote of council Monday night…3-3 tie with the mayor breaking the tie for the win! Board member composition is specified in HB658 and follows CID convention. Funds CANNOT be used outside the CID and hence the inclusion of the I-285 RTW. Don’t know if this is for expanded bonding facility since bonding capacity on $28M in appraised value is going to be limited. By the way, mayor said “is the Governor in?…city manager replies…YES!”

  13. 13

    RAJ

    Not so fast. Construction begins in Oct-Nov and requires an easement over MARTA property. Can someone please get the the plans from MARTA…..I have the OLD Breeze Card!

  14. 14

    RAJ

    Have not spent much time in the Mid-West but we may have gotten our money’s worth(finally)with Dr Green!

  15. 15

    abmagic

    I guess we may be reading the article differently. My interpretation is that any bonds issued will be tied to the CID generated tax revenue. If that’s not the case, and the city is issuing revenue or GO bonds, I would agree with your public burden comment (as well as the likelihood that Doraville may face an uncertain future)..

    However, if I am right, and the CID taxes are the SOLE source of revenue used to pay the bonds issued, then I think I am right and you are wrong. Because a CID is a self imposed INCREMENTAL TAX. And therefore, all other scheduled taxes, which already go to fund things like roads, schools and infrastructure, will be still be generated for Doraville and the DeKalb school board. And there will be no incremental risk to the city or the county (except the risk of poor management of those funds).

    If we are debating the merits of the TAD, I would agree with you.

  16. 16

    enuff govt already

    A commentary on the GM debate can be found here. http://theotherdunwoody.blogspot.com/ The whole push for public money in the GM project is coming from politicians. There must be money in it for them.

  17. 17

    RAJ

    I think the bonds would be secured by the property owner’s property…Doraville Sixty and repayable from annual tax revenue of the CID. The City of Doraville is not involved except for a member on the CID Board. They only passed a Resolution approving a CID for the City of Doraville Monday night. All other taxes still go to their respective jurisdictions.

  18. 18

    Rebekah Cohen Morris

    Developments don’t use a one-size-fits-all model, so this type of negotiating should not automatically be assumed to be a by-product of cronyism. Negotiations like this are just part of the deal when big developments are in the works. Seems to me that many developers don’t have to undertake this much in financing public spaces like roads, sewers, etc.

    This CID may be a good “Plan B” to a TAD (although I definitely still believe the TAD to be the most expedient way to finance this public infrastructure). Seems like a nice hybrid between private and public financing since the participating businesses will be essentially imposing this tax on themselves to fund public goods.

    Maybe that tunnel between the Assembly site and MARTA could be funded with tax-exempt special assessment bonds issued by the Assembly CID (see excerpt below). Whatever happens, we need to work together to reach an agreement that will ultimately benefit the community. Development is necessary to do this. In my opinion, it’s better to have a little tax-exempt financing to ensure that this great site located next to a MARTA station gets developed in a way that benefits the highest number of people.

    “Infrastructure to be financed by a CID with governmental tax-exempt bonds must be in public use. For example, roads or utility lines that by their configuration or location can practically be utilized only to serve a particular landowner or narrow group of landowners cannot be financed with tax-exempt special assessment bonds. Through-streets and public improvements typically can be financed through a CID’s tax-exempt bonds.” http://www.sgrlaw.com/resources/briefings/bond_practice/452/

  19. 19

    Tom Doolittle

    Article to be updated in Post–detail that AJC won’t do. How do tax abatements fit in with a CID? Is the CID for the purpose of doing private bonds or generating matching funds for grants?

    Regarding a CID for fallow property (non income generating, nontaxable) primarily for issuing private bonds:
    Its the same thing as what was attempted to be passed by Gold Dome in 2008. Called them “private cities” or IDDs. So Assembly isn’t a CID, because nothing is operating there–its an IDD.
    https://ballotpedia.org/Georgia_Infrastructure_Development_Districts,_Amendment_3_(2008)

    Ironically, an IDD is what New Broad Street used to build Baldwin Park in Orlando. New Broad Street was clearly counting on Georgia to re-introduce IDD legislation when it responded to GM’s request for bids in Doraville in 2009.

    History repeats.

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