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March 24 - 30, 2016 • Page 9A
LOCAL
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The property known as The Assembly is located at 3900 Motors Industrial Way in Doraville. Photo by R. Scott Belzer
Doraville mayor explains TAD conversation
by R. Scott Belzer
sbelzer@dekalbchamp.com
O ne northern DeKalb
County official has
weighed in on a hot topic
concerning real-estate,
public funds, and an abandoned
GM assembly plant.
On March 10, Doraville
Mayor Donna Pittman released
a statement to The Champion
concerning tax allocation districts
(TADs). Specifically, Pittman
referenced Doraville’s proposal
to become a TAD in order to fund
the redevelopment of the former
General Motors assembly plant
known as “The Assembly”.
In December 2015, DeKalb
County voted 7-0 in favor of
supporting Doraville’s proposed
TAD, which would allocate a fixed
amount of property tax revenue
to participating governments.
Doraville, DeKalb County, and
DeKalb County School District
(DCSD) would be the participating
bodies and a fixed amount would
go toward redeveloping the
property.
So far, the film production
company Third Rail Studios has
begun construction on 130,000
square feet of the property,
complete with a sound stage, mill
shops, related vendor spaces and
administrative offices. According
to the company’s website, the
first phase of construction will be
Doraville Mayor Donna Pittman
complete by summer 2016.
Nalley Nissan has also begun
construction - complete with a
structure in place - on the most
northern corner of the property.
Approximately $180 million
in infrastructure costs is needed
to make The Assembly ready for
mixed-use retail, housing and
office space, according to Pittman.
While that number - cited by
Integral Group, who’s heading
redevelopment - seems daunting,
area development would raise
property tax revenue and pay off
the project.
An initial, third-party feasibility
study projected approximately
$800 million in tax revenue could
be earned after The Assembly is
established, Pittman said. The
same study estimated $247 million
in infrastructure bonds could be
issued for the project, provided all
three government agencies agree
to the TAD.
While Doraville received support
from DeKalb County, DCSD has
not committed to the project. In
December, DCSD superintendent
Stephen Green likened the project
to Atlanta Public Schools’ shaky
involvement with the Beltline and
stated he wanted to keep funds
within the school system.
Pittman’s aim on March 10 was
to clear up misconceptions about
the proposed TAD and explain
how DCSD would benefit from the
project.
“When I consider the future of
our schools and think about the
tens of millions of dollars that the
school district will not get by saying
no to the TAD, it saddens me,”
Pittman states. “There are those
that would have us believe that by
participating in our TAD, the schools
will be giving up tax revenue. In
reality they will only lose revenue if
they don’t participate.”
Pittman went on to explain that
by not participating in the TAD, the
school system can expect $4 million
in personal property tax in the next
25 years, whereas participation
will allow $65 million. The project,
according to Pittman, would also
increase E-SPLOST funds from
$4.1 million to $45 million.
“Without the TAD, the
development does not happen, thus
the tax dollars never materialize,”
Pittman said. “All of these new
dollars can be used to pay teachers
and build much needed new
schools. As someone who grew
up attending DeKalb schools and
is now the parent of a student in
DeKalb schools, it concerns me
greatly that we would dismiss this
opportunity.”
The mayor said the “uniqueness
of the site” and the “severe
challenges of access to the MARTA
station [nearby] mean that it will
not develop except on the fringes
where streets already exist.” City
manager Shawn Gillen said this
was already becoming a problem
in attracting potential businesses in
and around the site.
“We have to keep in mind the
infrastructure was designed over
70 years ago,” Pittman said. “It was
well suited for an industrial facility
but not a dense, urban development.
Opposition to TAD financing typically
stems from a misguided assumption
that the development can happen
without it.”
The Assembly is located at
3900 Motors Industrial Way in
Doraville. The plant opened in
1947 before closing its doors
in September 2008. In 2014 it
was acquired by Integral Group,
which has outlined upcoming
redevelopment.