Smyrna study by Georgia Tech calls for tax increase
The Smyrna Gateway Studio Report proposes new investment of $3.7 billion over the next 20 years in response to the new SunTrust Park/The Battery complex. Prepared by a graduate student studio in Georgia Tech’s School of City and Regional Planning, Noell Consulting and Enterprise Innovation Institute, the land use, market and fiscal analysis was presented recently at a Smyrna City Council meeting.
Last year Mayor Max Bacon and the City Council approved a contract with Georgia Tech to undertake this analysis for the area in Smyrna next to The Battery and Sun Trust Park.
The report explored development impacts and opportunities along the east portions of the Spring Road corridor and its intersection with Cobb Parkway to transform low-density, strip-style development into a major new urban center over 20 years.
The Georgia Tech studio proposed that, over the next 20 years, the city redevelop these areas to include:
- more than $347.7 million in new single-family residential investment.
- $1.4 billion in new multi-family residential investment.
- $390 million in new hotel space.
- 3.2 million square feet of new office space.
- about 500,000 square feet of new retail space.
- $52 million in new infrastructure costs.
If the city issued 20-year debt to cover the entire $52 million in new infrastructure costs, the annual debt cost would be $3.5 million. After the impact fee proposed by the studio, the annual debt obligation needed to be covered by a bond millage would be $2.8 million. That means 1.14 mills more or nearly a 13 percent tax increase over the city’s current millage rate. If the bond was issued to cover only the required $19 million of initial required investments, that change drops to 0.22 mills or a 2 percent tax increase.
