Sandy Springs is weighing an economic incentive measure that would provide qualifying companies with a streamlined permitting process and breaks on licensing fees and taxes that could potentially exceed $200,000.
The proposal is the latest in an effort by cities across Georgia to attract jobs and shore up tax bases devastated by the recession.
It dwarfs a similar plan adopted by Alpharetta last year that provides up to $25,000 in fee-based incentives and outpaces Roswell's designs for economic inducements, which are still in the planning stages.
Sandy Springs officials still need to hammer out some details.
Under a draft plan presented to the City Council on Tuesday evening, qualifying businesses would need to create a minimum of 16 full-time positions and provide new capital investment or tenant improvements of more than $1 million. The incentive would increase as capital expenditures and the number of jobs grew.
But some council members objected, saying that tenant improvements, such as interior painting or new wiring, add nothing to the overall value of the property on the tax rolls.
"I support everything but tenant improvements," said Councilwoman Karen McEnerny, a retired asset manager for commercial real estate portfolios.
McEnerny said tenant improvements lose tax value over the years, while capital improvements, such as a new facade or addition, carry long-term tax value.
"I want something that stays in the tax digest," Mayor Eva Galambos said.
But Councilman Gabriel Sterling said the city's incentive package should weigh a company's total investment in the property, adding that Sandy Springs needs to settle on an incentive package quickly.
"We are losing out as the economy is turning around," he said. "Our lack of a policy is hurting us."
The council agreed to fashion a hybrid policy that may allow some tenant improvements in the formula.
The deliberations were of special interest to representatives from GT Software, which is looking to consolidate operations now in Alpharetta and Atlanta. The move would bring 45 employees to the city with plans to add an additional 30 over the next two years, all with an average salary of $100,000, said Eric Nelson, the company's president.
The company has found a suitable building in Sandy Springs, Nelson said, and he wanted to see what the city was offering in the way of economic incentives.
"The building we found is a great building," he said. "It needs a lot of work, more than just tenant improvements."
Under the current draft, GT Software would be eligible for a waiver of business license fees for two years, equaling a potential $150,000 incentive.
About the Author
