The Atlanta City Council gave the green light to redeveloping the Inman Park Trolley Barn.
Under the proposal from Mayor Kasim Reed’s office, sponsored by District 2 Councilman Kwanza Hall, the city will transfer the 126-year-old property to Invest Atlanta to oversee the bid process.
The council passed Hall’s ordinance on Monday by a 12 to 1 vote, with District 9 Councilwoman Felicia Moore voting no. Councilman Andre Dickens was absent and Councilwoman Mary Norwood abstained.
Reed wants to sell the property, which is currently leased to a nonprofit that maintains the historic building, in order to generate property tax revenue. Under the ordinance, a potential future buyer would be required to preserve the trolley barn and allow the space to be used for public events.
Hall noted the future sale “maintains a historic asset in the city into perpetuity.” The nonprofit currently leasing the space has announced plans to make a bid on the former streetcar maintenance facility.
The city bought the once-dilapidated trolley barn in the mid-1970s, tapping nonprofit Atlanta and Edgewood Street Railway Company to restore and maintain the historic building.
For years, the nonprofit has rented out the space for weddings and corporate events, with the proceeds reinvested into its maintenance. But, because the city owns the site, it doesn’t generate property tax revenue.
Steve Hays, president of the nonprofit’s board, said last week that his organization is raising money in hopes of buying the property. According to the nonprofit’s long-standing agreement with the city, he said, it has the right of first refusal on the sale.
Speaking at Monday’s council meeting, Hall called the nonprofit a “great steward” of the trolley barn and confirmed that it would be allowed the chance to buy the building at fair market value. The city has requested an appraisal of the property, he said.
Melissa Mullinax, Reed’s senior adviser, said last week the mayor wants the property to be sold through Invest Atlanta as that allows the city to set the parameters for how it will be redeveloped. If the property is sold through a sealed bid process, the highest bid wins and the city has no control over its future, Mullinax said.
It’s the latest property Reed has moved to sell in the past year as he eyes new ways to raise property tax revenue.
Reed plans to ask voters in March to approve an infrastructure bond referendum worth up to $250 million. He’s refused to raise property taxes on homeowners, thus the mayor is seeking to pay for the bond’s annual debt service through other means.
Last year, the mayor unveiled plans to sell Underground Atlanta and the Civic Center, to name a few. In December, Reed announced the city is under contract with a South Carolina developer to revamp Underground. Invest Atlanta is still reviewing bids for the Civic Center.
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