City Hall East moves closer to redevelopment

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By Rachel Tobin Ramos

The Atlanta Journal-Constitution

The Atlanta City Council has agreed to modify zoning conditions for City Hall East, opening the door to a new development plan for the 84-year-old building.

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Developers hope to transform nearly vacant City Hall East, built in the 1920s as a Sears, Roebuck & Co. store and catalog order fulfillment plant, into a new retail center. The building is in the historic Old Fourth Ward neighborhood.

File Developers hope to transform nearly vacant City Hall East, built in the 1920s as a Sears, Roebuck & Co. store and catalog order fulfillment plant, into a new retail center. The building is in the historic Old Fourth Ward neighborhood.

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“The redevelopment of City Hall East is one step closer,” Atlanta City Council member Kwanza Hall told The Atlanta Journal-Constitution on Wednesday.

The project, which is in his district, has concerned residents, who are both eager to see the hulking space redeveloped but with existing homes and businesses in mind. On Monday, the council voted 14-0 to approve the zoning changes, which will allow for more retail space and fewer residential units than previously proposed -- options residents endorsed.

“We had to get over that zoning hurdle to succeed,” he said.

The massive, city-owned building once was a mailing house for Sears, Roebuck & Co., as well as a department store. The first section of the now 2 million-square-foot building was opened in 1926.

Local development firm Jamestown Properties is negotiating with the city to pay $27 million to buy City Hall East, which housed the police and fire departments for a time. Jamestown needed the zoning changes to allow large anchor retailers to take space there. The company also plans smaller boutiques and restaurants, along with the potential for residences and a "technology hotel" for servers and digital equipment.

Hall also said he’s been meeting with city, county, state and federal officials to identify funding that could help seal the deal with Jamestown.

“We haven’t had a substantial pot for closing our deals, and now there’s not closing funds at all,” Hall said. He’s looking at bond funds or other monies that could be used to fix problems with the aging structure or give other financial incentives to close the deal with Jamestown. Selling the building is crucial to Atlanta, he said, because of budgetary shortfalls.