A north Fulton city is paying tens of thousands of public dollars to an organization that is lobbying the city council to support a developer's zoning request.
Some residents and watchdogs say the relationship crosses an ethical line and raises conflict-of-interest questions, with tax dollars used to push a site change that would contradict the city's master plan.
The city of Alpharetta has paid $25,000 this year -- with another $25,000 due in July -- to Progress Partners, an arm of the Greater North Fulton Chamber of Commerce. It was created about 18 months ago to promote economic development.
The chamber says that's exactly what the group is doing in the case of Avalon, a massive mixed-use project off Old Milton Parkway near Ga. 400. The developer, North American Properties, wants the city to allow 250 rental units, which would require an exception to Alpharetta's targeted 85 percent to 15 percent ratio of for-sale to rental properties.
At a breakfast event last month and in a mass e-mail, Progress Partners has told business leaders and chamber members to support Avalon by contacting council members, posting favorable messages on the city's website and showing up in support at an upcoming public hearing.
Others think such tactics in support of a specific project go beyond promoting economic development.
"I feel that $50,000 of my money is going to lobby for something that most of the citizens of Alpharetta have repeatedly said they're against," resident Jill McMullan said. "It's pretty disgusting the way that it was done."
Alpharetta resident Ellen Kendall said the chamber is using its power, and residents' money, to drown out opposition.
"We don't want more apartments," Kendall said. "People were very clear about that on the city's website when they asked for input."
Chamber leaders and city officials say they see no problem, although one city councilman, Mike Kennedy, said the city may need to reevaluate the arrangement. Kennedy said the $50,000 was intended for business recruitment, not lobbying.
"It's not what we had in mind when we gave them the money," Kennedy said.
Further complicating matters, Mayor David Belle Isle and council members Chris Owens and Michael Cross are on the chamber's board of directors, raising questions of impartiality when the developer's request goes before the panel.
"It's one of those things, to the average citizen, that just doesn't smell right," Common Cause Georgia Executive Director William Perry said. He said Belle Isle, Owens and Cross should recuse themselves from voting.
The mayor said giving money to Progress Partners spares the city from having to employ an economic development staff. Alpharetta isn't the only city that gives the chamber group money. Roswell has also paid $25,000 to the chamber initiative, and Milton is considering chipping in.
Belle Isle said he sees no difference between the chamber taking a position on a council decision and any other city-hired service provider speaking out. Both he and Owens said they will not step away from the vote. Cross did not return messages.
Owens pointed out that none of the city officials are on the chamber's decision-making executive board, just the larger board of directors which has about 65 members. He said council members should recuse themselves when there's a prospect for personal gain, and that's not the case with Avalon.
But an official with a similar group in the area, which also receives public funds, said it wouldn't use taxpayer money to lobby governments.
Partnership Gwinnett, part of the Gwinnett County Chamber of Commerce, receives $500,000 from the county government and more than $100,000 combined from a dozen cities and the school system.
"I've never had to ask a board member, in my 5 1/2 years, to call the county to lobby," Senior Vice President Nick Masino said.
North Fulton chamber President Brandon Beach said this is a unique situation, with hundreds of millions of dollars worth of investment, jobs and increased sales tax and property tax revenue on the line.
"We don't look at this as a zoning issue," said Beach, who urged business leaders to support Avalon at the Progress Partners breakfast. "We look at this as economic development."
Avalon is being built on the former site of Prospect Park, a planned mixed-use development that failed in the economic downturn. The property was cleared four years ago, and what remains is a large pile of dirt, a partially-finished parking deck and a large expanse of scarred, muddy earth.
It is North American Properties' second major acquisition in metro Atlanta in the past two years. It also bought the retail portion of Atlantic Station in a joint venture with CB Richard Ellis Investors.
On Thursday the city's planning commission voted to allow rental units only if North American Properties buys rights to undeveloped apartment complexes and builds no more units than would have gone in those developments. The maximum would be 250. The matter goes before council on April 23.
"This has been an eyesore for four years," Beach said, "and the citizens of Alpharetta have been complaining about this for four years. For something to be happening on this site is great news."
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