Doraville pins hope on GM site sale

The sprawling former General Motors plant has been both a shadow and a ray of hope over Doraville, the DeKalb County city of 8,500.

The 2008 closure of the plant near the Perimeter and I-85 wiped out more than one-third of Doraville’s employment base. The factory has been empty since — a seemingly valuable swath of real estate on MARTA rail and near busy freeways, but one whose redevelopment has been stalled by a wobbly economy.

But this week, a hopeful Mayor Donna Pittman announced that developers Integral Group and Macauley+Schmit plan to acquire the 165-acre site in August and eventually turn it into a mixed-use town center.

The property has been under contract since July 2013, and Integral has been in discussions about the site for about two years.

In an interview, Pittman said the potential GM redevelopment — for now more a vision than a concrete development plan — could transform not only her city but also metro Atlanta.

Doraville, a major hub for the region’s Hispanic and Asian communities, has a poverty rate of nearly 31 percent, or almost double the state’s 17 percent rate.

Pittman said the development team has embraced the city’s master plan for the site, which envisions millions of square feet of office space, research centers, retail, parks and thousands of housing units. It could be bigger than the redevelopment of the former steel mill in Midtown into Atlantic Station.

“It’s really exciting to be able to bring the economy up for the whole region,” she said.

But the sale of the auto plant, where minivans last rolled off its assembly line, has been stymied by a fickle economy and the inability of past development teams to seal a deal.

Several firms initially expressed interest, and a previous finalist, New Broad Street Cos., pulled out in 2010 after DeKalb County balked on using stimulus money and other public funds to support the purchase and development.

Shaky capital markets and uneven demand for retail and corporate office space has vexed developers. At one point, the site was also considered for a potential Falcons stadium.

“The location makes it extremely attractive for development,” said Mercer University economist Roger Tutterow. “It’s unfortunately the timing of the downturn of the market that has delayed its promise from coming to fruition.”

GM has demanded a steep asking price — $60 million — and has shown little interest in budging. A GM spokesman declined to disclose details of the sales agreement.

Doraville is working on crafting a tax allocation district or TAD that would help fund development of the site, Pittman said.

The mayor said she is convinced the new development team will come through, but she declined to comment on the developers’ financial backing.

Doraville economic development chief Luke Howe said he believes the Perry team has investors “lined up.”

“The biggest issue has been the asking price,” Howe said. “The $60 million is pretty tough.”