A month after denying a developer’s requested tax break, a Fulton County authority reversed course and approved the tax savings for a student housing project that’s already under construction.
The Development Authority of Fulton County board voted 5-2 to approve a $2.9 million property tax abatement request by DZ Tech Community 1 LLC, which is building the Hive student apartments off Centennial Olympic Park Drive NW. The eight-story, 100-unit apartment tower targeting Georgia Tech students topped off construction in October, according to the developer’s social media posts.
The situation is a rare reversal in which a developer returned to a development authority after being shot down, promising reduced rental rates and additional community benefits to try to sweeten the pot. On its second attempt, DZ Tech obtained the needed votes.
“The (Hive) student housing project represents an opportunity to alleviate housing shortages, provide affordable options for students and enhance infrastructure along a key corridor near Georgia Tech, Georgia State and many (historically Black colleges and universities),” board member Laura Kurlander-Nagel said in a statement.
The dissenting board members, however, said they felt the incentive request was too late, since the apartment building is already under construction. Board member David Belle Isle said he felt like the developer was “trying to bootstrap some good will … to make a bad idea suddenly a good idea.”
“I think this project is just grabbing for funds,” he said, voting in opposition alongside Vice Chair Kyle Lamont. Chairman Kwanza Hall and Treasurer Mike Bodker were absent, with the rest of the nine-member board voting in favor.
The $58 million project has cost about $5 million more than DZ Tech anticipated, its representatives told the DAFC board, which recently rebranded as Develop Fulton. Keystone Financial last year announced $39 million in construction financing for the project, according to the Commercial Observer. DZ Tech appears to be a subsidiary of Atlanta-based developer Dezhu, according to state business records and its social media accounts.
Credit: Courtesy Georgia Tech
Credit: Courtesy Georgia Tech
DZ Tech’s representatives argued the tax savings, which it would accumulate over a 10-year period, would help the Hive offer rental rates up to a 12% discount compared to other nearby student housing complexes.
The approved incentive also requires the developer to comply with Atlanta’s affordable housing ordinance, which involves setting aside 10% of the units for people making at or less than 60% of the area median income — $45,180 for an individual. DAFC said the city’s ordinance only applies to student housing projects when incentives are provided.
In addition, the developer said it would donate $350,000 to Boyd Elementary School, Children’s Healthcare of Atlanta’s Arthur M. Blank Hospital and the Girls Who Golf foundation.
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