A Fulton County authority Tuesday denied a developer’s request for nearly $3 million in tax savings for a student housing tower that’s already being built.
The Development Authority of Fulton County board voted 5-2 to reject the property tax abatement request by Atlanta-based developer Dezhu, 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 last month, according to the developer’s social media posts.
Dezhu argued the property tax savings, which it would accumulate over a 10-year period, would help offset increased construction costs and allow for reduced monthly rents for its student tenants. Most DAFC board members, however, said the incentive request was ill-timed.
“What we’re providing here are incentives, and incentives need to encourage someone to do something,” Laura Kurlander-Nagel said. “(It’s) already started, so we’re not really providing an incentive here.”
Credit: Courtesy Georgia Tech
Credit: Courtesy Georgia Tech
The $58 million project has cost about $5 million more than the developer 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.
Dezhu’s representatives argued the tax savings would also help the Hive offer rental rates at about a 20% discount compared to other nearby student housing complexes.
“Designed to meet the critical shortage of affordable student housing in Atlanta and offering lower-cost, dorm-style housing, the (incentive agreement) would provide an affordable and convenient option for students from diverse backgrounds to access quality rental housing close to their institutions,” the developer said in a DAFC fact sheet.
DAFC Treasurer Mike Bodker said there wasn’t a way for the board to police the Hive’s rent prices if the incentive was approved. The authority’s attorneys also couldn’t verify whether the project would fall under Atlanta’s affordable housing ordinance, which would require it to set aside 10% of the units for people making at or less than 60% of the area median income — $45,180 for an individual. The developer said it planned to comply with that policy, if required.
Neither Dezhu nor Keystone responded to a request for comment ahead of Tuesday’s meeting.
Board members Alvin Kendall and Mike Looney were the dissenting votes, while Chairman Kwanza Hall and board member Erica Long were absent.
