Papa John’s pizza chain will get financial incentives from Cobb County for opening a headquarters near Truist Park.
In a split vote, the Development Authority of Cobb County on Tuesday approved $13 million in revenue bonds, which will pay for improvements Papa John’s needs for its new headquarters at The Battery Atlanta. One member of the authority who voted against the incentives said they were not necessary to ensure the company located in Cobb.
The company plans to move into 60,000 square feet of office space at Three Ballpark Center at 788 Circle 75 Parkway near Truist Park. The new location is expected to add about 162 jobs, with an average annual salary of about $120,000, company officials said.
Papa John’s plans to keep its information technology, supply chain, accounting and legal departments located at its original headquarters in Louisville, Kentucky. The relocation of other jobs to Cobb is expected to be completed by the summer, Papa John’s previously said.
The authority also granted a tax break to Papa John’s known as a “bond for title transaction.” Papa John’s will transfer the title of its property to the Development Authority, which does not pay property taxes. Under the arrangement, any property taxes Papa John’s owes on the assessed value of the property are increased gradually by 10% each year until it’s paying the full amount.
Nelson Geter, executive director of the Development Authority, said Papa John’s will pay debt service on the bonds.
Clark Hungerford, chairman of the Development Authority, said the tax abatement would only apply towards personal property at the site, such as improvements made to the existing office space, furniture and equipment. He said Papa John’s plans to build out the two floors it will lease at the building.
Hungerford said a fiscal impact study concluded the company’s relocation will have a positive affect on the county and the school district.
“Any time you’re trying to recruit an opportunity for this county as opposed to other locations, everybody comes with their economic incentives available to the applicant,” he said.
Authority member Donna Rowe said the relocation will attract other companies to Cobb.
“It’s just good for The Battery area, (and) it’s good for Cobb County,” she said.
Development Authority members J.C. Bradbury and Karen Hallacy voted against the resolution while Hungerford, Rowe, Jamala McFadden and Smith Peck approved it. Member Kevin Nichols did not attend the meeting.
While he’s glad Papa John’s is coming to Cobb, Bradbury said he didn’t think the Development Authority’s incentives made a difference in Papa John’s decision because the company said in November that it would be moving to the county.
“I was not convinced this investment would not happen without incentives,” he said.
Cobb County Commissioners at their Nov. 10 meeting unanimously approved an incentive package for Papa John’s that reduced building permit and business license fees for the company. The value of that package was $105,314, according to county documents.
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