Council approves City Hall East sale, but with reservations

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By Leon Stafford

The Atlanta Journal-Constitution

The Atlanta City Council on Tuesday approved the $27 million sale of City Hall East to Jamestown Properties, even though some voting in favor did so with reservations.

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Johnny Crawford, jcrawford@ajc.com A front view of City Hall East East in Midtown.

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City Councilwoman Felicia Moore, who voted to approve the sale, said she was concerned about suggestions that residential plans for the site might require residents to meet certain income levels, which she said strays from earlier discussions on offering some affordable housing.

"I'm holding my nose on it only to the extent that this real estate market is very tenuous and I can see where these adjustments may be more helpful," Moore said. "But I do think that we need to try another way to ... mitigate some of the affordability issues."

Councilman C.T. Martin, who opposed the sale along with Councilwoman Natalyn Mosby Archibong in the 11-to-2 vote, said he thinks the council should have hired a consultant to run the numbers on the sale to make sure the city is getting the best deal.

"Too often a good deal for the city doesn't end up that way," he said, specifically mentioning Underground Atlanta as an example. "Later on in the fine print, it kind of gets us."

Archibong said she supports the idea, but she thought the council needed more time to look into concerns about the deal.

"There was a level of unreadiness that made me uncomfortable," she said.

Atlanta-based Jamestown Properties will pay $15.5 million to the city for the massive Ponce de Leon landmark. The Atlanta Development Authority will receive $11.5 million.

Jamestown is planning a $150 million redevelopment of the site, with 40 percent devoted to residential use, another 40 percent for commercial space and 20 percent for small- and mid-box retail.

The Atlanta Beltline, the planned 22-mile loop of green space, transit and development around the city's inner core, includes the City Hall East redevelopment in its long-term plans, as the building is adjacent to train tracks on which planners expect to run light rail.

The actual sale of the property will be handled by the ADA, which is the city's official economic development arm. The council's action on Monday turns the property over to the ADA for the sale.

Atlanta Mayor Kasim Reed, in a statement, said, “Today is an important step in revitalizing the Ponce de Leon corridor by moving City Hall East into the hands of a strong private partner -- Jamestown Properties -- that can create jobs, stimulate development and add to the vitality of one of our city’s most important neighborhoods.”

Councilwoman Yolanda Adrean said she was cautiously optimistic about the sale, saying the city was dealing with a known developer. Success in the redevelopment could be the tipping point in changing the face of Ponce de Leon, she said.

"It puts private money on the Beltline," she said, "and that's what the federal government is looking for when matching funds along the Beltline."