Stan Jester
DeKalb County
Board Of Education
The City of Doraville has embarked upon a major redevelopment opportunity to create a regional mixed-use employment and activity center at the site of the old General Motors plant. The Doraville TAD Bleakly Report outlines the rationale, boundaries, fiscal data and potential projects for the City of Doraville Tax Allocation District (TAD).
A Tax-Allocation District (TAD) is a defined area where real estate property taxes gathered above a certain threshold for a certain period of time (typically 25 years) is used for a specified project improvement. These improvements are typically for revitalization, especially to build the public infrastructure necessary for the development – roads, water and sewer lines, bridges, etc.
Once any TAD obligations of the district are retired, the City, County and Schools will receive the full property tax increment from the accelerated pace of new development created. Throughout the TAD period, the proposed redevelopment will generate additional retail sales with increased sales tax and ESPLOST revenues.
The city, county and school district are each taxing authorities over that property. In July, the Doraville City Council voted to approve and adopt the Redevelopment Plan and TAD. Yesterday, the DeKalb County Commissioners unanimously passed the TAD .
Intergovernmental Agreement (IGA) with Doraville and DeKalb County
Doraville TAD Bleakly Report (outlines the rationale, boundaries, fiscal data and potential projects for the TAD)
Potential benefits to DeKalb County Schools
• The TAD will accelerate future growth in DeKalb County Schools’ Tax Digest.
• DeKalb County Schools will continue to receive the estimated $936,000 in property tax revenue currently generated in the TAD Redevelopment Area over the term of the TAD.
• The proposed redevelopment will have the potential to generate an additional $18 million in new DeKalb County Schools property tax revenue, which will revert to DeKalb County Schools upon the termination of the TAD.
• If DeKalb County Schools participates in the TAD, DeKalb County Schools would receive $113 million more (over the first 25 years) from ESPLOST revenue and in personal property taxes from participating in the TAD, than it would receive if it did not participate in the TAD.
News Release
STATEMENT REGARDING PARTICIPATION OF THE DEKALB COUNTY SCHOOL DISTRICT IN THE DORAVILLE TAX ALLOCATION DISTRICT (TAD)
Dr. Stephen Green
CEO & Superintendent, DeKalb County School District
I have several serious reservations about committing school resources over the course of the 25 years of the TAD for this project.
- Our core business is teaching and learning, not speculative, unpredictable real estate projects.
- Two of the three current TADs in DeKalb County have not succeeded in meeting their tax revenue projections. The Kensington and Briarcliff TADs have decreased in tax digest value since their inception with Kensington showing a decrease in excess of 20 percent.
- After several years, the ongoing inability of the City of Atlanta and the Atlanta Public Schools to fulfill their intergovernmental agreement based on a TAD for the financing of the Beltline project demonstrates how unforeseen pitfalls can be costly to the local school system.
- The school tax digest for the Doraville TAD would be fixed for 25 years with a best case scenario of nine more additional years before the School District would recoup taxes that had been given up.
We are expected to be good stewards of our resources and I think making a 25-year commitment to freezing the school tax digest does not fulfill that commitment.”
— Dr. Stephen Green, Superintendent DeKalb Schools
Superintendent: DeKalb Schools won’t be part of Doraville TAD
By Marlon A. Walker – The Atlanta Journal-Constitution
Jan 10, 2016 – Superintendent Steve Green said DeKalb County Schools would not contribute financially to what could be one of Atlanta’s most significant mixed-use developments since Atlantic Station, saying he would not gamble with millions in tax dollars meant to educate children.
DeKalb adds safeguards to public investment in GM site
By Mark Niesse – The Atlanta Journal-Constitution
Dec 24, 2015 – DeKalb won’t contribute any tax money to $247 million worth of infrastructure upgrades unless the county school system signs on. DeKalb also added a clause to the deal that ends its participation in the redevelopment plan after 10 years — on Dec. 31, 2025 — unless the county votes to continue its investment.
DeKalb backs development of GM factory site, awaits schools’ support
By Mark Niesse – The Atlanta Journal-Constitution
Dec 15, 2015 – Ambitious plans to rejuvenate a closed-down General Motors factory site cleared a major hurdle Tuesday when the DeKalb County Commission unanimously agreed to invest in the redevelopment effort.
DeKalb school district voices concerns over Doraville-backed project
By Brent Barron – NeighborNewspapers.com
Dec 23, 2015 – “We are expected to be good stewards of our resources and I think making a 25-year commitment to freezing the school tax digest does not fulfill that commitment,” DeKalb County School Superintendent Stephen Green said.
“I have seen the statement from the superintendent, but that is not necessarily a reflection of the entire board — we have not been given an opportunity to make a proper case,” Doraville Mayor Donna Pittman said. “The facts are compelling, so we feel confident if given an opportunity to make the case.”
Doraville Tax Allocation District
By Nancy Jester
Dec 22, 2015 – Every dime of property taxes for this property must be paid. The TAD does not change that. The business community and investors have expressed their concerns about DeKalb’s business climate. The GM site redevelopment is one of the largest projects in the Southeast. Successfully redeveloping this area will improve DeKalb’s reputation, bring thousands of jobs to the area, and improve land value; resulting in a larger commercial tax base for everyone.