Should DeKalb Schools embrace economic development? Fate of GM project depends on answer.

A rendering of the corporate campus portion of the proposed Assembly development in Doraville. The Integral Group and partners propose converting the former General Motors plant in Doraville into a $1.6 billion mixed-use development.

Even presidential candidates have not brought as many people to meet with AJC editors and reporters as did a delegation today seeking to turn up the pressure on the DeKalb school board to support the redevelopment of the dormant GM site in Doraville.

I counted 10 people on hand to tell the AJC why the resistance of DeKalb Superintendent Steve Green and his Board of Education may crush the ambitious project to create a downtown Decatur vibe – even bigger and better – on the former car manufacturing site bounded by I-285 and Peachtree Industrial. (You can read the news story about the meeting here.)

The development company, Atlanta-based Integral Group, plans to call the work, play and live community Assembly. As someone who passes the bleak landscape en route to work, I would love to see a bustling Atlantic Station-type project rise from the ruins, as would the city of Doraville, which believes the development would reverse its fortunes.

The question is whether DeKalb Schools – which takes 56 cents of every tax dollar collected in the county – is willing to expand its mission from education to economic development and participate in a TAD, which stands for tax allocation district.

As the AJC explained in a recent story:

The Doraville tax allocation district would work this way: Schools and local governments would agree to collect only the property taxes the 165-acre site now produces for the next 25 years. For schools, that is about $1 million yearly. The developers would start building on the site — a proposed mix of housing, offices, retail and businesses. The increase in property taxes as values increased would not go to schools, DeKalb County and Doraville, but to pay off up to $247 million in bonds that would be issued to pay for the infrastructure the developers want before starting.

The city of Doraville, which contains the site, has agreed to the TAD. DeKalb County commissioners have also agreed, with the caveat that they would participate if the school district agreed to join. If the project were to continue without school board backing, developers would be forced to downsize — or abandon — their plans.

TADs have been successful funding mechanisms for infrastructure at Atlantic Station and for the Beltline, though the latter has been at the center of a dispute over missed payments from the city of Atlanta to Atlanta Public Schools, which concerns Green.

So far, the answer from DeKalb Schools has been a firm “no.”

In a statement on the blog a few weeks ago, Green said, “After listening with an open mind, I remain convinced that our core business should be teaching and learning and the direction of the financial resources to our students. DeKalb schools have never before participated in tax allocation districts. Schools are our business…For the Doraville TAD, the school tax digest would be fixed for 25 years with a best-case scenario of nine more years before DeKalb would recoup lost taxes. What advantage does a 25-year commitment to freezing the school tax digest give students and schools?”

More money ultimately and a better DeKalb County, says the mayor of Doraville.

“The effect this development will have on the entire region cannot be overstated,” said Mayor Donna Pittman, while at the AJC today.I respect the school board. I believe they inherited a mess and they are trying to fix it. This is their opportunity. We are willing to come to the table and talk to them. It is really disturbing to me the school board could possibly stop economic development in our city. They have more power than the council, the mayor and the citizens. We’ve had several meetings with Dr. Green, and I met with a couple of school board members. A few have not even responded. We would like to sit down with all of them.”

Among the financial evidence presented by the development team from a study they commissioned by Bleakly Advisory Group:

  • The total tax digest of the DeKalb County School System lost $1.6  billion in value from 2010 to 2015—this is the main source of revenue to support the school system.
  • Now, the Doraville TAD has an assessed value of $40 million.
  • DeKalb County Schools gets $358,000 per year in property taxes from the property—they will continue to get these taxes every year under the TAD.
  • At build-out, the Assembly/Doraville redevelopment will represent an investment of $2 billion.
  • It will increase the tax value (assessed) of the site by $750 million at build-out—an 18 times increase in value.
  • DeKalb County Schools will get $135,000,0000 in additional tax revenues from the development while the TAD is in effect.
  • When completed, DeKalb County Schools will receive $17 million annually property taxes from the development — 47 times more than it receives currently from the site.
  • This one development, on less than 200 acres, will roughly cut in half the county-wide  decline in the DeKalb County School’s tax base over the past five years

The most interesting comments at the meeting today — at least to me as an education writer — related to the role of school boards today.

“I think it is important the school board and chair understand their role in economic development and in the development of our county and future of our county…This project is so important,” said Katerina Taylor, president and CEO of the DeKalb Chamber.

I have interviewed more than 100 school board candidates over the years and never discussed targeted economic development with them. We talked about the role of schools in influencing real estate values and community cohesion and the urgent need to ready kids for jobs and colleges. But I can’t recall candidates mentioning wielding the taxing power of the district to spur private development. Nor did any of them cite the role of a school board member as enticing such development.

So, this represents new territory, and I understand the hesitation of DeKalb board members to add economic development to their many challenges, including warding off state takeover, improving under performing schools and passing an ESPLOST.

But that is their role, contends Egbert L. J. Perry, the CEO of Integral, the development company seeking to transform the GM plant into a hip mini-city.

By default, Perry said the project now hinges on people who didn’t run for the position of mayor, council member or economic development director. They ran for school board and they applied for superintendent, but yet they dictate the direction of economic development by their control over the majority of the tax dollars collected in the county, he said.

The DeKalb school board’s lack of responsiveness will stifle the growth of Doraville and the county, said Perry. “They should never be crucified for the job they are doing; they are doing it well. They say they are not in the economic development business. They are right. You are not supposed to be. But you are. And deciding not to support the TAD, you are actually making an economic development decision.”

School board member Stan Jester believes the board should consider the TAD, but says most board members follow the lead of the superintendent who remains leery. Jester suggested a belated outreach to the DeKalb Schools may be playing a role.

“I think a number of people may feel disenfranchised and feel they weren’t included early enough, even though most of the money is coming from the school district. And they feel now it is being jammed down their throats,” he said on the phone tonight.

Jester believes the TAD is a financial boon for schools, saying, “I haven’t seen any arguments against the TAD that have any validity.” And he considers a TAD a far better alternative than a tax abatement project. “With a tax abatement, we see nothing for 15 years. And we get nothing like an Atlantic Station,” he said.

So, does Jester believe his school board colleagues might relent and at least meet with the developers? One problem is that while most elected officials in the county and beyond support the TAD, the public does not, said Jester, noting that 99 percent of the emails have voiced opposition. Although that seems to be changing, he said.

 

 

 

 

 

 

 

Reader Comments 1

82 comments
jerryeads
jerryeads

Okay, I have no skin in the game, I'm not in DeKalb. But it's pretty ugly that the politicos, crooks and con artists insist we have to shaft the kids of DeKalb for the next twenty years for them to make their killing. I applaud the superintendent for standing up for his kids. The politicos in the state and obviously in DeKalb have been doing their best to make sure kids in public schools get the short end of the stick for at least the last decade. 

GUARANTEE that it matters not whether the school leaders buy in or out, the politicos and developers will make sure kids continue to get shafted. And if Steve continues to hold his ground, the crooks, con artists and shysters running this gambit will do their development - which, by the way, I think is a great idea for the area. But either way, the kids get the short end. The only question is how mean and ugly the politicos and developers will be toward your kids - and hence, to the parents in DeKalb.

Just another example of the rich making sure they get richer and the poor get poorer.


bu22
bu22

If you are in DeKalb, write your school board member and tell them you oppose the school participating in this TAD.  I have.

EdJohnson
EdJohnson

@xxxzzz Even you are not in DeKalb, write the DeKalb school board members. 

AvgGeorgian
AvgGeorgian

I would like to now place my order with silverbob:

1. Three cases of snake oil - lite please

2. A box of cronyism/nepotism - whichever is cheaper 

3.Two empty promises - size XXL

4. Six Carried Interest vouchers

5. The grab bag assortment of tax credits, credit default swaps, and offshoring classes.


Free shipping please - you may donate your profits on my order to Davenport Histlemeyer Von Moneybags - or developer of your choice.

SilverBob
SilverBob

By the way, let's not forget that we are arguing the merits of a TAD when that is not the issue at all.  The issue is that the DeKalb School Board won't grant a hearing to a respected business leader (chairman of Fannie Mae, etc) who invested heavily in our county in good faith.  Just let him present his case and then vote based on facts rather than hear-say.  When I real all the comments it is easy to see there are strong opinions often based on partial truths.  TADs are commonly used by other jurisdictions.  There is reason to believe a presentation of his case is worthy of fair consideration.  In fact, not to give him his day in court is rude.  We shouldn't be that way to anyone who has come to us with a serious proposition. 

Astropig
Astropig

@SilverBob


Fannie Mae was bailed out with tax dollars a few years back.I don't think I would be bragging about that connection.


Fannie is currently involved in litigation about whether its current income and profits belong to its shareholders or the U.S. Treasury,which rescued it just a few short years ago.Before it imploded,it was generally seen as the gold standard in buying and selling political influence and favors to keep its pyramid of loans and securities moving through the financial system.


Seems like Egbert Throttlebottom doesn't understand any business dealings that don't involve taxpayer bailouts and subsidies.

bu22
bu22

@SilverBob The issues are clear.  There's no need for a hearing.  A politically connected developer is trying to fund his project on the backs of schools.  Its a lie that it doesn't cost the schools money.  Every $ of increase goes into the pocket of the developer as he doesn't have to pay his infrastructure costs himself.  This is probably the best big property in the entire Atlanta metro, near MARTA, I-85 and I-285.  It will develop.  And if there is a TAD, the school district gets none of that money.  The developer effectively pockets it all with bigger profits.  Economic development is not within the purview of the schools.  Real estate speculation is not something the schools should be doing.  They should be educating students, not lining the pockets of politically connected developers.  I applaud the superintendent and all the school board members for standing up for students.

Lee_CPA2
Lee_CPA2

@SilverBob

He can get on the School Board agenda just like every other citizen.  What he wants is a special BEHIND CLOSED DOORS MEETING to pitch his proposal.  He wants the decision to be made in private before any public hearing - which is a requirement of a TAD.


iwd
iwd

This piece is heavily slanted in favor of Integral and Doraville's claims and interests. The fact is that the assessed valuation of these parcels are very low right now due to the condition of the property. Without a TAD, some development would occur given the state of the economy and the ITP real estate market. So, without the TAD, the schools will be seeing higher tax revenues. Some of the value induced by the TAD (if any) will also come from a decline in revenues to businesses/property values in other parts of Dekalb County, so only the part induced in the COUNTY as a WHOLE is of value to the schools. (There is strong evidence that TADs/TIFs merely move the tax base around within a county; that localities with TADs/TIFs do no better - or even worse - than localities without TADs/TIFs. See work by Richard Dye and David Merriman and the Lincoln Land Institute.)


So, a reasonable approach would be for the school system to obtain projections (by its own consultant, and not by Bleakley) of what the County's tax base would be over the life of the TAD with and without the TAD. The difference between those should constitute the upper bound on what the schools should forego over this period. The TAD should provide the schools a portion of the increment (vs. none of it as proposed) corresponding to this analysis.


For folks who think that school boards have no business in economic development/TAD decisions, please recognize that schools receive roughtly 1/2 of the property tax based and so are the BIGGEST stakeholder in TAD decisions. They stand to lose the most if a TAD unjustly rewards a developer for growth that would have occurred anyway.

As for the Bleakley study, this firm is an economic development consulting firm that is hired basically to justify economic projects and subsidy. They did another TAD study years ago arguing that merely because areas with TADs grew in tax base that the TAD's were a "success." But public officials designate TAD areas, and can draw their boundaries around neighborhoods poised to grow even with out the TAD, essentially "capturing" tax growth rather than CAUSING tax growth. This means that tax monies that would have gone to schools and local government are diverted to developers.

Finally, given the size of the proposed development at this site, costs will be imposed on schools and public services. None of this is taken into account int he sizing of the TAD subsidy. 



Astropig
Astropig

@iwd


Good analysis.It used to be that politicians solicited bribes from business interests,but these kind of deals turn that on its head.

SilverBob
SilverBob

@iwd Study what a TAD is before waxing your opinions.  You are simply wrong.  The TAD is based on revenues that would not exist if it weren't for the development generated by the TAD.  Taxes go up and everyone wins.  Every jurisdiction uses TADs except DeKalb.  Could that be a reason why our tax base has dropped $1.6 billion in the past five years while others around us have gone up?  Might be we should approach our growth in a business like manner and not fall behind. Someone is giving you really bad advice.  There is zero logic to failing to do a TAD.  All the school board has to do is let the TAD happen.  It isn't in the economic development business unless it blocks progress and hinders future tax growth, which means it is doing great harm to our children.  It needs money.  TADs generate fresh money.  Pretty simple.  And TADs don't fail and there is no liability.  Check it out.

Astropig
Astropig

@SilverBob @iwd


Look, if you're on the DeKalb school board,the fastest way to get rid of Egbert Throttlebottom IV here is to say that since this is such a sure-fire,can't miss deal, that you'll only consider it for a piece of the equity.Instead of being your  banker we want to be your partner. I'm sure he'll lose interest pretty quickly

iwd
iwd

@SilverBob  I haven't seen you cite any actual evidence to back up what are simply your opinions. I cited serious work by two urban economists who have studied TAD/TIF districts and found zero-sum effects - exactly contradicting your claim that TADs "generate fresh money." The work by Dye and Merriman shows that localities issuing TADs actually saw less tax base growth than areas that did not. This means that TADs may stimulate activity in the TAD itself, but at the expense of lower activity in the rest of the locality. This is not opinion (which is what you are offering); this is empirical evidence based on hard data.


bu22
bu22

@Astropig @iwd You don't think some of the DeKalb politicians putting pressure on the school district aren't getting some quid pro quo?

bu22
bu22

@SilverBob @iwd Development will happen with or without a TAD.  Its your statements that are wrong.  It might happen slower, but on this property, it absolutely will happen.

bu22
bu22

@iwd If Doraville wants so badly to help him, let them not only give him tax abatements, but use their city tax dollars to support infrastructure.  Don't ask the schools to do it.

Astropig
Astropig

@xxxzzz @Astropig @iwd


"You don't think some of the DeKalb politicians putting pressure on the school district aren't getting some quid pro quo?"


Of course they are.They're bought and paid for themselves and their big problem is that they can't get the schools to go along.


DeKalb Schools can deal with this guy from a position of strength.He 's basically "offering" to give them what they'd get anyway by law.They don't have to give in to this pressure from politicians that want lucrative consulting jobs when they finally get kicked out of office.


They would have to be crazy to offer this guy any kind of hearing. Hells bells,they sent 10 flunkies to the AJC to try to hoodwink them on this, and there is an obvious shill on this very board right now,so they'll probably rent a mob of a couple of hundred at any hearing that gets scheduled to "prove" that the public is demanding this boondoggle.





Astropig
Astropig

Doing this would set a dangerous,destructive precedent.If you think that other businesses are not going to demand the same little wet kiss from the school district to "even the playing field" if this passes,then you need psychiatric care.These deals distort the marketplace by favoring one developer over another and making true price and cost comparisons impossible.They're financial cocaine for connected wheeler-dealers that don't have to live with the burdens that they create for working middle class families that pay the great bulk of the taxes that support basic governmental functions.


It used to be called "insider dealing",but now we call it a "public-private partnership".

SilverBob
SilverBob

@Astropig Don't be cynical.  TADs are like mortgages, they are used all over the U.S. to fund public infrastructure.  It is all based on revenues generated by the development, so there is no money for the school system to you. Just like you don't pay for the streets around your house because the government does, there has to be a way to raise funds for infrastructure.  TADs do that with everyone winning.  There are 6,000 successful TADs in the U.S.  It could be argued that the reason DeKalb is falling behind is that we don't use TADs to build our tax base.  How many homeowners would we have if we didn't use mortgages?  My guess is not many.

Astropig
Astropig

@SilverBob @Astropig


They're not like mortgages at all.Mortgage holders don't expect their neighbors to pick up part of the cost of building and owning a home.


Again,why isn't Thurston Howell III here offering schools a piece of the action? If he's baking a pie that will only grow in size,why can't he throw a few crumbs to a stakeholder?



bu22
bu22

@SilverBob @Astropig Just because it could be argued doesn't mean it makes sense.  You could also argue the moon landings were fake.

SilverBob
SilverBob

Egbert Perry and his company's efforts to develop the 165 acres on the site for the former GM plant are being hindered by the reluctance of the DeKalb County School Board to accept a presentation on the proposal to create a Tax Allocation District ("TAD") to build the public infrastructure needed for this major development in our county.  I believe a TAD is essential to the success of the project as envisioned, and the vote of the school board is important only after all the facts are presented and all questions are answered.  TADs are safe and proven and only use taxes generated by new development that result from the TAD to fund the project's public infrastructure.  So, everyone benefits, particularly the students in school systems where TADs are used to generate new taxes. 

SilverBob
SilverBob

Check out some basic info on the TAD, how it works.  There is no reason for the School Board not to take a presentation and thoughtfully consider something that will be a tax windfall for DeKalb.  No TAD in Georgia has ever failed, and there have been lots of them. 


https://www.change.org/p/dr-stephen-green-ask-the-dekalb-county-school-board-to-hear-the-tad-proposal?recruiter=91309387&utm_source=share_petition&utm_medium=facebook&utm_campaign=share_facebook_responsive&utm_term=des-lg-notification-custom_msg&fb_ref=Default


Astropig
Astropig

@SilverBob


C'mon Silver...You're about as convincing as Jim and Tammy Faye Bakker in their post scandal days.You're embarrassing whomever you are shilling for,man.

OriginalProf
OriginalProf

I have been reading Get Schooled  for about 5 years, and this is the first thread I can remember in which every poster agreed! Here, that DeKalb Schools should stay out of economic development projects, period.

SilverBob
SilverBob

@OriginalProf The DeKalb Schools won't be involved in economic development by participating in a TAD.  No existing tax money is used.  It is just a way to increase tax revenue while building public infrastructure needed for a major real estate development.  TADs are safe and they work.

AvgGeorgian
AvgGeorgian

I too have some projects that would work(at least for me) if funded by the taxpayer instead of me.

SilverBob
SilverBob

@AvgGeorgian A TAD doesn't use existing tax funds...they are frozen.  it is just a financial vehicle to accelerate the funding needed for public infrastructure.  Most governments and school systems use them.  DeKalb should.  Everyone wins in a TAD.

redweather
redweather

@SilverBob @AvgGeorgian Tax revenues are frozen at their present level, if I understand how this works. The school system must wait a significant number of years before it can reap the benefits of enhanced tax revenues, and that is the problem, or one of them. 

Astropig
Astropig

@redweather @SilverBob @AvgGeorgian


" The school system must wait a significant number of years before it can reap the benefits of enhanced tax revenues, and that is the problem, or one of them. "


Right-o. And by the time those tax revenues are unfrozen,those places will be run down 25 year old homes and boarded up businesses where tax assessments will actually be declining.Thus,the natural revenue growth will have been captured by the investors and connected insiders. SilverBob knows this,he just thinks that we're too stupid to know this.


You'll know that they got to Stephen Green if he suddenly,inexplicably changes his position on this and is miraculously offered a lucrative no-show job when his days of public service are over.

coopma
coopma

Now you know why the Braves just hit the road to Cobb and did not want to go through the aggravation of dealing with the City of Atlanta. 


I bet Arthur Blank wished he had moved the new dome to the burbs rather than being extorted by the neighborhoods around the new dome for tens of millions....

FredinDeKalb
FredinDeKalb

Not surprising that Stan Jester is open to the School Board considering the TAD given he and his wife (DeKalb Commissioner Nancy Jester) are both ALEC members. They both know the TAD could undermine the school district by not providing the necessary funding to an area that is already has overcrowded schools, if approved by the school board. As mentioned by others, the primary objective of school boards is to educate children not economic development. Former school Board member Paul Womack recently reminded this Board of their obligation to children first. This sentiment has been echoed by many other citizens throughout the county.

If this project made fiscal sense, a TAD would not be required. DeKalb citizens should support the superintendent and the Board on thieir stand along with enoucraging them to not be intimidated. I would not be surprised if TAD advocates try to encourage DeKalb citizens to vote against continuing the eSPLOST program, which has provided benefits for the children.

SilverBob
SilverBob

@FredinDeKalb No existing taxes are involved in a TAD.  The TAD is a way of financing major public infrastructure without using existing tax money.  The taxes that support the bonds are only ones that come from the new development, and the tax base is increased in several ways...not just property taxes but also taxes from increased values of property surrounding the TAD and also business and retail taxes from the new development.  TADs are very safe, and everyone wins. 

JDJay
JDJay

I am leery of a 25-year TAD, but given that DeKalb is in dire need of a Doraville cluster, including new middle and high schools, why not come to a deal on the TAD in exchange for some of the land to build schools which are already desperately needed.  

BiggestMouthintheSouth
BiggestMouthintheSouth

I'm just happy to read educated comments with substance on the AJC, without the usual racist banter.  This reeks of a good ol' bait and switch.  

Lee_CPA2
Lee_CPA2

If a tax incentive is the deciding factor in a development decision such as this, it probably wasn't viable to start with.  These projects should stand on their own merits.

Whose to say that in thirty years, they bulldoze the development and want to build something else?  Absurd you say?  Let me point you to the Ga Dome.

If the leaders in Dekalb were serious about economic development, they should focus on the quality of life factors - you know, those silly things such as the crime rate, crumbling infrastructure, traffic congestion, and GREAT SCHOOLS.

What is also unsaid is that GM Doraville was paying its taxes for years while Ga lawmakers were dangling tax incentives in front of its competitors to locate in Ga.  How many hundreds of millions in incentives did Kia receive while GM and Ford were struggling and closing down their facilities in Doraville and Hapeville?

We have met the enemy and he is us....

OriginalProf
OriginalProf

@Lee_CPA2 

Are you the same person as Lee_CPA? Whatever, I agree with you here strongly.

SilverBob
SilverBob

@Lee_CPA2 A TAD really isn't a tax incentive, it is a financing mechanism that allows governments to fund public infrastructure.  The existing tax base is no touched.  So, the schools benefit just as they would have otherwise.  The new taxes generated by the development secure the bonds.  Also, the taxes increase for a variety of reasons, including what is called the halo effect that increases property values surrounding the TAD.  The nice things about a TAD are that they are safe and everyone wins.  They are used successfully by most governments, and none has failed in Georgia.

SilverBob
SilverBob

@Lee_CPA2 A TAD is a financing vehicle, not a tax incentive.  No existing taxes are lost and the new development should generate enormous taxes in future that will help get the school system out of its tough financial situation.  No tax revenue is lost.  The schools continue to get the taxes they are getting.  It is somewhat like a mortgage to buy your home.  Just a way for a government to fund public infrastructure.

Astropig
Astropig

@SilverBob @Lee_CPA2


"A TAD is a financing vehicle, not a tax incentive. "


Interest rates are at  all-time lows.Money is basically free.If they can't make the project work without robbing the kids of DeKalb,then this project is doomed,anyway.



class80olddog
class80olddog

So don't approve it and let the land stay like it is.  No sweat.  The only question I had was number of residences that were part of this development and the amount of school tax generated by these residences.  Of course the school superintendent should not agree to take on another 2000 students and receive no money for their education.  But if we are only talking about commercial development and he just wants a windfall property tax without having to contribute, then shame on him for standing in the way.  Remember: the taxes are not there now; he is not giving up ANYTHING at this point in time. 

DCSSFrustratedParent
DCSSFrustratedParent

@class80olddog From the rendering it looks like there could be a large number residences and hence the school district would take on new students into a cluster that is already overcrowded with zero $$ to actually support these students - for 25 years - almost 2 full kindergarten to 12th grade classes.

MaureenDowney
MaureenDowney moderator

@class80olddog @DCSSFrustratedParent No, they pay. Here is a good primer from Invest Atlanta:


https://www.investatlanta.com/development/commercial-incentives/tax-allocation-districts/tax-allocation-districts-frequently-asked-questions/


Local jurisdictions choose to invest their future tax revenues in new development. TADs are established in slow- or no-growth areas where a disproportionately low amount of property tax revenues is generated. Typically, areas designated as TADs don’t pay their fair share of property taxes, forcing higher-wealth areas to carry the cost of services for these areas. TADs are essential for catalyzing development that would otherwise not occur.

After a TAD is created, participating public school districts, cities and counties continue to receive the pre-TAD base amount of property tax revenues. Increases in property tax revenues resulting from new development attracted to the area are used to pay certain redevelopment costs; this is the subsidy used to draw new projects to the area.

All taxing jurisdictions choose whether or not they want to participate and the terms of their participation in TADs. In Atlanta, payments in lieu of taxes (PILOT) have been provided as allowed under state law to reduce the demand on the City, County and School Board by earmarking additional dollars to offset real or perceived service demands as projects go vertical. The Atlanta Board of Education and the Fulton County Board of Commissioners have acknowledged the effectiveness of this economic development tool by consenting to the inclusion of their property tax increment in every TAD to date in the City, with the exception of Princeton Lakes.

Property tax values increase in TADs as redevelopment occurs. This gradual growth over the life of the TAD results in a windfall for participating jurisdictions when the districts is dissolved and all property tax revenues revert to the taxing entities.

16. How are increases in service costs, such as public safety and waste management, funded if property tax revenues to taxing jurisdictions remain level over the life of a TAD?

Areas designated for TADs generally don’t pay their fair share of taxes: high-wealth areas carry the cost of services for low-income areas. In fact, the tax digest within areas designated as TADs in Georgia is 44 percent of the average value of the host jurisdiction.

TADs are typically established in areas with a declining tax base resulting from disinvestment and blight, where the demand for some city services such as solid waste collection and police patrol is greater. The creation of a TAD generally leads to a decreased need for many city services as well as increased revenues for the jurisdiction, including personal property taxes, sales taxes and impact fees. Once the district is dissolved, the incremental growth in real property taxes reverts back to the taxing jurisdictions, creating a windfall of new revenue and expanding their tax bases.


class80olddog
class80olddog

@MaureenDowney @class80olddog @DCSSFrustratedParent Forgive me for being so dense, but the County sets the millage rate for the educational part of property taxes, right?  So, will that part of the property taxes of the houses in this development go to the school system or to the TAD?

SilverBob
SilverBob

@class80olddog @MaureenDowney @DCSSFrustratedParent There are no houses in the development affected by the TAD.  It is high density commercial development, not many youngsters that will require educating in the schools and very high property taxes paid to support the schools.  Makes enormous sense.

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