An Economic Calculus of Redevelopment Powers in GA.

The benefits to communities in terms of economic growth, jobs, tax revenues and economic vitality

Who is Bleakly Advisory Group?

Bleakly Advisory Group is a real estate and financial advisory firm based in Sandy Springs.

We authored the only statewide assessment of the TAD program for the Livable Communities Coalition in 2007.

We have assisted over three dozen local governments in Georgia in the creation and operation of TADs.

What Does Approval of the Redevelopment Powers Law mean for Brookhaven?

Approval of referendum lets Brookhaven join 70+ Georgia cities and counties with the ability to use redevelopment powers.

The Redevelopment Powers Law is Georgias version of tax increment financingthe nations premier economic development tool used in 49 states and D.C. with over 6,000 transactions completed nationally.

It does not create any TAD Districts or commit fundingjust authorizes its potential use.

TADs accelerates the growth in the Citys tax base by encouraging redevelopment of underperforming assets, lessening the tax burden on homeowners

What Redevelopment Powers can do for Brookhaven?

Attracts new investment into parts of the City needing redevelopment--

TAD funds are typically highly leveraged with private investment--$1 of TAD funds attracts $7 of private investment

TAD bonds are revenue bonds, repaid solely from increased property taxes in district, not a full faith pledge (general obligation) of the City.

TAD funds are the 10% to 15% of but for funding needed to get redevelopment projects financed.

TAD funding typically goes for site improvements, public infrastructure, utilities and other parking decks.

TAD funding has been critical to projects in Atlanta, Atlantic Station, the BeltLine, Centennial Olympic Park, Princeton Lakes, Perry Bolton, East Point.

A sample of the 70+ Cities/Counties who approved Redevelopment Powers

Duluth Gwinnett County (5) Lawrenceville Woodstock Atlanta (10) Savannah Gainesville Augusta Athens Smyrna Fayetteville

Clayton County East Point College Park Albany Marietta LaGrange Rome Flowery Branch Lawrenceville Kingsland

How TADs Work

Future Property taxes from new development and future growth are used to pay off TAD bonds.

Future tax revenue generated in excess of bond payments during the term of the TAD Bonds can also be returned to the tax jurisdictions.

Assessed value of existing properties in TAD district the base

Incremental change in TAD assessed value from new development

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TAD ExamplesAtlantic Station

TAD ExamplesAtlanta BeltLine

The Change: Camp Creek 2002-2013

2002 2013

TADs Impact on Governmental Revenues in East Point

The East Point TAD will be an economic winner for all three governments who participated:

East Point will receive $19 million more in revenue from the TAD

Fulton Co will receive $15 million more from TAD

Fulton Schools $25 million more from the TAD

What Has Been the Impact of East Point TAD# 1?

Without TAD, assuming 4% growth per year the assessed value would have grown from $4 million to $7 million over the last twelve yearsa 1.75 times increase With TAD, the assessed value grew from $4 million to $89 milliona 22.3 times increase increase

The Impact of TAD on East Point

By any measure, East Point TAD #1 has been an economic winner for the City of East Point:

JobsCreated over 3,000 jobs and $109 million in annual payroll

Tax Digest Increased assessed values by $85 million or 22 times greater than when TAD formed

Retail Sales--Stimulated over $165 million in annual retail sales

Generated a surplus of $58.5 million local revenues in 20 years

$19 million surplus to East Point $15.5 million surplus to Fulton County $24 million surplus to Fulton Schools

Commercial TADs are clearly an economic winner for Georgia Cities, Counties and School Districts

Safeguards built into Redevelopment Powers Law for Brookhaven

The City retain all current property tax revenue, only future increment is affected.

Redevelopment Districts are limited to 10% of the Tax Digest in the Citymost cities are at 3% to 5%.

City Council has to approve each district as it is formed, separately it will approve any financing done in the district

Cannot issue financing unless all project debt and equity are committed.

Additional sales tax revenue generated from project goes directly to the community.

Single family neighborhoods are typically not included in TADs. TADs create the framework for attracting jobs and additional

investment in an area. TADs create the halo effect of attracting investment into

areas around TADs