Development amendment appears to pass

Georgia voters have apparently approved a change to the state constitution that would allow developers to divert school tax dollars to redevelopment projects.

With 96 percent of the precincts reporting, the vote on Amendment 2 — so-called tax-allocation districts —. was 1,833,819 in favor and 1,721,700 against, or 51.6 percent to 48.4 percent.

Tuesday night, supporters and critics of the amendment were holding their breath as results showed the vote totals as close as 20 votes at one point.

“This thing is going down to the wire,” said A.J. Robinson, president of the pro-TAD Georgians for Community Redevelopment.

“We’re cautiously optimistic, but that’s all I can say,” Robinson said.

State Sen. Vincent Fort (D-Atlanta), who is against the amendment, said that while the vote remained too close to call at 10:40 p.m., he felt opponents could have soundly defeated it if not for the “deep pockets” funding the pro-TAD campaign.

“It wouldn’t have even been close,” he said.

The fight for votes heated up in recent weeks as supporters and critics of the complex financing tool argued their case to an electorate largely preoccupied with the presidential race.

TADs encourage development in blighted areas by freezing tax payments for a period of time. Instead of paying higher taxes when property values rise, developers use the money to pay down project costs. Cities, counties and school districts choose whether to participate in TADs.

The tool has helped challenging projects such as Atlantic Station and was part of the financing plan for Atlanta’s Beltline of parks and transit.

But in February, the Georgia Supreme Court ruled that the state’s constitution prohibited TADs from funneling school tax money to redevelopment. Tuesday’s ballot question asked voters to amend the constitution and again allow TADs to tap school money, which represented roughly half the tax subsidy TADs offered.

Amendment supporters said fully restored TADs would fast-track important revitalization projects and, in the end, would benefit schools, counties and cities by raising property values. They ran a well-funded campaign using mailers and the Internet.

Critics said it’s inappropriate to use school tax money for redevelopment, and that solid development projects will move forward anyway without the subsidy. A loose coalition of opponents included a few teachers’ associations and the Fulton County Taxpayers Foundation.

On the other two amendments on the ballot, voters:

• Approved amendment 1. It will provide tax breaks to people and businesses that own more than 200 acres of land. In return, owners would agree not to subdivide or develop their forest land for at least 15 years.

• Appeared likely to defeat amendment 3 that would allow cities and counties to approve “infrastructure development districts. The districts which would levy fees on home buyers to pay for amenities and infrastructure improvements needed to support the development.