One of South Fulton’s largest projects moves forward. Here’s the plan.
A clear runway lies ahead for one of the largest developments in Atlanta’s Southside, a mixed-use village that local leaders hope will attract grocery stores and retailers.
A $209 million project called Sandtown Village is slated for a 60-acre slice of South Fulton, roughly 15 miles southwest of downtown Atlanta. Envisioned to encompass more than 920,000 square feet of development, the project plan includes a variety of housing options, an expanse of commercial spaces and 10 acres of green space.
Dunwoody-based Hutch Development received support for the project last week from the Development Authority of Fulton County, which preliminarily approved a $6.3 million tax break. Officials for the authority, which also goes by Develop Fulton, said the incentive will help Sandtown Village fulfill its potential as a catalyst for the area.
“Sandtown Village marks a significant investment that will strengthen this particular corridor as a place where residents can live, work and thrive while enjoying quality, thoughtful and intentional design elements,” Develop Fulton Chairman Kwanza Hall said in a news release.
Located at 5746 Campbellton Rd., the project site is in a corridor that South Fulton leadership has earmarked for future development. It’s among many suburban stretches surrounding the Southside where longtime residents say they’re starved for commercial gathering places like those found in Northside neighborhoods.
Hutch paid about $3.8 million to buy the property a year ago, joining a wave of developers that have recently spotted untapped potential south of I-20. Atlanta-based development giant Portman in July similarly announced a 332-unit apartment complex in Fairburn.
The South Fulton City Council five years ago created two tax allocation districts — areas where property tax revenue growth is allocated to pay for infrastructure within its boundaries — to try to spur corporate investment. The Campbellton Road corridor falls into one of those TADs.
In December, the city’s downtown development authority allocated $9.7 million in TAD funds to support Sandtown Village. The contribution will help finance a roundabout on Campbellton Road alongside other utility and road improvements.
“This development will not only provide much-needed residential options and commercial opportunities but also enhances our infrastructure and brings new energy to this already vibrant community,” City Manager Sharon Subadan said at the time.
Catherine Rowell, South Fulton councilwoman for the city’s District 1, added that the village “positions the area to attract another anchor grocery store, casual dining and upscale retail.”
Tax support
Develop Fulton pitched in its support by working to lower Sandtown Village’s property tax burden as it comes to fruition.
The $6.3 million tax abatement, which received unanimous support Thursday at a special-called meeting, applies to only $149 million of Hutch’s plans. That includes nearly 290 apartments, up to 120,000 square feet of commercial and retail space and the green space investments, featuring wetland boardwalks and trails.
The rest of Sandtown Village’s plans — worth about $60 million — include 74 single-family homes and 58 townhomes, and that portion falls outside of Develop Fulton’s pending deal.
Development authorities like Develop Fulton offer tax savings to incentivize corporate investment through a complicated real estate agreement often called a “bond-for-title” deal.
The structure, unique to Georgia, is designed to circumvent the state constitution’s gratuities clause, which prevents government entities from providing a good, service or property without an equitable return.
In exchange for “bonds” that aren’t issued publicly but represent the potential future value of the project, the company grants its project site’s title to the development authority. As a government entity, development authorities don’t pay property taxes and are able to pass along tax savings to the company by charging rent at a certain percentage of what the property is worth.
In the case of Sandtown Village, Hutch will accumulate $6.3 million in tax savings over a decade as long as it fulfills its development commitments. Those tax savings will only be accumulated by the aspects of Sandtown Village within the Develop Fulton agreement, not the single-family homes or townhomes.
Develop Fulton estimates the project will produce more than $16.5 million in new property tax revenues during the 10-year period, despite the abatement. Sandtown Village is also expected to support 366 full-time employees when complete.
“Sandtown Village exemplifies how responsible development can elevate an entire corridor and significantly strengthen Fulton’s tax base,” Develop Fulton Executive Director Sarah-Elizabeth Langford said in the news release.
About the Author
Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. He's been with the newspaper since 2018 and enjoys diving into complex stories that affect people's lives.
