According to a news release, City of South Fulton officials have approved a tax allocation development plan – including the creation of two new allocation districts – that will support the redevelopment of historic neighborhoods and the establishment of new ones as well as fund economic development initiatives.
The plan will create an east tax allocation district that includes the city’s main commercial districts along Roosevelt Highway and Old National Highway. A west district includes areas along Fulton Industrial Boulevard, Camp Creek Parkway and Georgia Highway 92.
“By focusing future increases in tax revenue from these districts we will be able to increase the economic viability of these areas and enhance of delivery of world-class services to the residents who live there,” said City Manager Odie Donald II. “Residents can be assured that, while their tax bills will increase naturally as their property values rise, they will not pay additional taxes as a result of the creation of these districts.”
Tax allocation districts (TAD) are one of the most valuable economic development tools cities can use to fund new development. They allow governments to provide financial assistance to eligible public and private redevelopment efforts within officially designated areas.
Increases in property tax revenues, which are generated primarily from new investment in the districts, are allocated to pay infrastructure costs or certain private development costs within the districts. This is primarily done through the issuance of tax allocation district bonds.
Much of the focus of the City of South Fulton’s east side district will be the redevelopment of established neighborhoods and area properties. The district includes nearly 2,000 acres and has a combined appraised property value of about $223 million.
Nearly half of the homes and other structures in the district were built before 1980 and need rehabilitation. Projections from the TAD plan for the east district show a potential property value after 20 years of $1.24 billion.
In the west district, which includes more undeveloped areas within more than 4,700 acres, TAD funds will be used to develop new infrastructure to support residential and commercial development. Today, the district represents about $159 million in appraised property value.
Projections show that could climb to about $1.43 billion as the area grows over the next two decades.
Development in the west district would be focused in several nodes, including the Campbellton and Sandtown communities as well as a planned riverfront district along the Chattahoochee River and a 600-acre new town center complex being considered along Camp Creek Parkway at Enon Road.
“As we work to encourage development in the city, we have to find creative ways to fund these projects,” Donald said. “Tax allocation districts allow us to plan for and manage growth without having to ask residents to bear the additional cost. This is a win-win for everyone.”