The city of Atlanta’s development arm is expected to consider property tax breaks Thursday for two apartment communities that will include “workforce housing.”
The proposed property tax breaks are the carrot in a city strategy over the past few years to encourage developers of apartment towers to set aside 10 percent of units that are affordable for residents who make 80 percent of median income.
One project — Post Centennial Park — features a pet spa and rooftop pool and last year was awarded a $4.4 million public grant from Invest Atlanta. An Invest Atlanta meeting agenda says the agency’s board will consider an estimated $4.6 million property tax break that would come in exchange for committing 10 percent of the project’s 438 units to workforce housing.
Separately, the board will consider a nearly $2 million tax break for a 224-unit apartment development at the Edgewood-Candler Park MARTA station.
Between the tax break scheduled for consideration Thursday and the earlier grant from the city’s Westside tax allocation district, or TAD, the Post development could receive about $9 million in public subsidies.
It will rise on underused parking lots that generate about $92,000 per year in property taxes. That figure would grow to an estimated $13.85 million over 10 years after deducting the projected tax break, Invest Atlanta documents state.
The total public subsidy for the project – including the grant and tax break – would equal more than $20,000 per unit.
Regular rents will range from $1,166 per month for studio apartments to $2,592 per month for units featuring three bedrooms and three bathrooms. Workforce unit rents would range from $955 per month for studio units to $1,418 per month for a three-bedroom, two-bathroom apartment.
At the Edgewood-Candler Park MARTA station, developer Columbia Ventures plans apartments, retail, a commercial building and a performing arts facility for a “youth-focused” non-profit, according to Invest Atlanta documents.
The commercial building and performing arts facility are not subject to the city tax incentives, but the documents state that Columbia Ventures plans to finance construction of that portion of the development with New Market Tax Credits, a financial vehicle to encourage development in lower income areas.
The incentives total about $8,900 per apartment.
Following development the property is expected to generate nearly $6 million in new property tax revenue over a decade after deducting anticipated tax savings, the documents said.
MARTA is seeking developers to build on underused land near its stations to create a new revenue stream and boost transit trips.
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