In a special called meeting on Tuesday morning, the Brookhaven Development Authority unanimously approved a resolution outlining the parameters of the deal. If things go as planned, the panel could vote to finalize things as soon as next month.
“We’re very excited, both about the project and also to be part of the city of Brookhaven,” said Ed Allen, Related Group’s senior vice president for development.
As outlined during Tuesday’s meeting, the development authority would issue up to $160 million in bonds to help fund the development, which is scheduled to be completed in 2026. It would also offer the developer a 10-year tax abatement valued at up to $15 million.
Officials said the incentives are needed to “facilitate the construction of the hotel, to offset the cost of supplying the affordable housing units, and to defray the cost of some public infrastructure improvements.”
About 20% of the project’s 382 apartments would be set aside for workforce and affordable housing. Walkways and sidewalks connecting to the new Children’s Healthcare of Atlanta campus would be among the infrastructure improvements.
An aerial view of the planned site for "Manor Druid Hills," a mixed-use development near Briarcliff and North Druid Hills roads. The buildings inside the yellow lines would be replaced with office space, a 140-room hotel and nearly 400 apartments. SPECIAL PHOTO
DeKalb County commissioners and school board members have for months questioned the need to offer tax incentives in such a high-demand corridor, saying it would unnecessarily limit new revenues coming to their respective tax digests. They have not changed their stance since the proposal resurfaced with the Brookhaven Development Authority.
Proponents of the deal, meanwhile, say the project would increase tax revenues even during the abatement period.
BDA executive director Shirlynn Fortson said the site in question created about $130,000 in tax revenue last year. Somewhere between $14 million and $18 million in net new tax revenues would come in during the decade-long abatement period, she said.
Brookhaven councilwoman Madeleine Simmons said during Tuesday’s meeting that the city was supportive of the deal.
County leaders opposed to the arrangement have no direct authority to stop it. They could, however, file a challenge in court during the bond validation process.