DeKalb says GM deal still on

A Florida developer’s bid to remake the GM plant in Doraville, declared dead just the night before, showed a flicker of life Tuesday.

DeKalb County officials insisted they are repairing a broken contract between GM and developer New Broad Street, and that the $36-million redevelopment project at GM's shuttered Doraville plant is still moving forward.

But county commissioners and Doraville officials, who must approve the project, say they are not willing to support a tax increase to fund the project, especially when they have been left out of the loop in its planning.

“It still sounds shaky,” Commissioner Lee May said. “What I don’t want to see is where we’re giving the whole $36 million to New Broad Street and GM and we’re paying it through a tax increase. That’s what I don’t want to see.”

DeKalb CEO Burrell Ellis and his staff have been negotiating a behind-the-scenes deal to use $90 million in federal stimulus bonds to spawn development. They want to use $36 million of that money, which likely will have to be covered by a tax increase, to help Florida firm New Broad Street redevelop the old plant into a mixed-use live-work district.

On Monday night, that deal fell through and New Broad Street announced it no longer had a contract with GM.

On Tuesday, DeKalb administrators said they talked with a GM executive, who claimed the corporation was repairing the contract with the developer.

“As a result of that conversation with GM today, I’m feeling cautiously optimistic that very shortly this deal will be back on track,” DeKalb chief deputy operating officer Jabari Simama told commissioners.

It remains unclear if the deal will happen. GM and New Broad Street declined to talk to The Atlanta Journal-Constitution, citing a confidentiality agreement – an agreement that should expire if the contract fizzles.

County commissioners said that even if the deal is salvaged, they still are dubious about putting $36 million of taxpayer money, needed to back the bonds, at risk.

The deal also must completed by June 30, when the county must either present its financing plan or ask the state for an extension to get funding together for the bond projects.

DeKalb officials have proposed increases in property or sales taxes to generate that money. The only other funding option would be tapping the county operating budget, which is already facing a shortfall this year.

The commission will vote on a tentative agreement with Doraville on June 22, along with a request for an extension from the state.

“We cannot do this without Doraville,” Commissioner Jeff Rader told the AJC. “For two years, we knew GM was closing and no one started planning until now. GM is the most valuable economic site in DeKalb, probably in Georgia. This is ridiculous.”

Doraville was asked to shoulder $10 million or at least share of the debt, which would require another 2.5 mils added to the city tax rate, Doraville Mayor Ray Jenkins said.

“I don’t want to float bonds that my citizens are going to pay for 25 or 30 years,” he said. “We don’t have that kind of money.”

DeKalb commissioners spent Tuesday afternoon hammering the CEO’s staff over being left out of the loop during negotiations with New Broad Street and GM.

“The communication has been abysmal,” Commissioner Elaine Boyer told the CEO’s staff. “Doraville doesn’t have the money. They may have to dip into the reserves to cover their budget. Doraville is not in the position, nor I, to make a serious decision in two weeks or less. ... Just remember we’re the policy-makers. We’re not at the end of the line.”

In Doraville, officials focused on delivering their vision and needs into the project, no matter who the developer is.

“I’m looking forward to interviewing the top candidates for a Doraville-dedicated development consultant,” said Councilwoman Pam Fleming. “It’s time to put Doraville first.”

The 165-acre GM site sits in Doraville off Interstate-285 near MARTA's North line. New Broad Street has proposed building a new urban center with a mix of residential, retail and office space. County officials said Tuesday that the development would create 3,352 new households and an estimated annual sales revenue of $103 million.

“I have no idea if it’s on or off,” Jenkins said. “Whatever these people get together, we’ll be here. If they come back, we’ll be ready.”