Archive for the ‘Tax Allocation District’ Category

Atlanta Proposes $240 Property Tax Increase

Mayor Shirley Franklin unveileda proposed budget that will raise the average homeowner’s property taxes $20 a month.

The mayor said the tax increase is necessary because the city is receiving far less money from sales taxes and other fees, which she blamed on the ongoing economic recession.

Atlanta Takes Aim At DeKalb’s HOST Money

With budget shortfalls and furloughs, the City of Atlanta is looking for a piece of DeKalb County’s Homestead Option Sales Tax (HOST) pie.  DeKalb County created the 1-percent sales tax on most goods sold in the County in 1997 to offset property taxes on homeowners and to fund infrastructure projects, such as new sidewalks and paving some streets.

About 33,000 Atlantans live in portions of the city that are within the boundaries of DeKalb, according to the Atlanta Regional Commission. They live in neighborhoods such as Candler Park, Druid Hills, East Lake, Edgewood and Kirkwood.  Councilwoman Natalyn Mosby Archibong believes the city could be in line for about $10 million a year.

East Lake resident Kyle Caldwell believes the money from HOST can be used for projects such as building new sidewalks near Drew Charter School.

“It’s very hard to push a stroller on these sidewalks,” said Caldwell, 46, who’s lived in East Lake for more than 10 years.

Caldwell said he’s pressed DeKalb officials for years for a breakdown of how much money from HOST has been collected in East Lake and how much has been spent on projects in that community.

“I did not know it had been this long,” said Councilwoman Anne Fauver, who co-sponsored legislation supporting Archibong’s plan and represents portions of DeKalb. “The city tends to think of itself as Fulton County, regardless of the fact that 11 or 12 percent of its residents live in DeKalb.”

DeKalb County recently suffered a set back when the Fulton County Superior Court Judge Jerry Baxter ruledthat the County had to share HOST revenues with the newly created City of Dunwoody.  DeKalb County continues to litigate with its cities over the share each are entitled to receive.

New TAD Restrictions Clear Legislative Hurdle

Legislation putting restrictions on taxpayer-financed redevelopment of blighted areas passed a Georgia House committee unanimously on Monday.

HB 63, sponsored by Rep. Earl Ehrhart, would raise the bar for local governments seeking to form tax allocation districts (TADs) in run-down neighborhoods by tightening the legal definition of what constitutes a blighted area.

Communities across Georgia have been using TADs since the 1980s to foster redevelopment in areas that have deteriorated to the point that they aren’t likely to attract private developers.

TADs allow local governments to float bonds for redevelopment projects that are repaid from the tax revenues generated by the higher property values those improvements bring.

Ehrhart, R-Powder Springs, introduced the bill after officials in Cobb County complained that some TADs were being proposed there in areas that weren’t truly blighted.

“I think people took it too far and ruined a valuable economic development tool,” he told members of the House Governmental Affairs Committee.

Ehrhart said his legislation would get rid of “subjective, general” language that makes it too easy for communities to form TADs.

Hat tip:  www.LegalBlogAtlanta.com

Duluth Delays Overlay District Decision

Duluth wants to clean-up Buford Highway and is looking to create overlay zoning districts to remove certain acceptable commercial uses from along Buford Highway and in its downtown.  Types of commercial development that could be disallowed completely are modular home sales, used auto dealerships, auto repair businesses and pawn shops. 

The Duluth City Council delayed a decision this week to incorporate additional changes and to allow review by its legal department.  The proposed zoning changes will come back to the council on its September 8 meeting.

An August 11 version of the proposed overlay district proposals can be found here.  The proposed overlay districts are a part of a larger Buford Highway Corridor Development Strategy that includes a development of a 2030 Comprehensive Plan, creation of a Tax Allocation District (TAD), a Pilot Bond Program, a Citywide branding campaign, and hiring of a full-time Economic Development Manager.