A company considering relocating to Sandy Springs found itself in the middle of a city policy discussion about tax breaks for companies.
At its work session on Sept. 20, the City Council said it would come up with a definite policy on incentives at its next meeting in October.
The council discussed offering incentives to GT Software, a “mainframe integration” company with offices in Atlanta and Alpharetta looking to consolidate in one location. Sandy Springs is competing with the Vinings community for the company, according to documents provided by the city.
City Manager John McDonough told the council in a memo that the company is considering purchasing property that would house 45 employees and has plans to expand by 30 employees over the next two years. Under the current incentives proposal, GT Software wouldn’t pay business license fees for two years, equaling a possible $150,000 in incentives.
The benefits McDonough suggested are proposed under a draft policy for economic incentives that has not been approved by the City Council.
Assistant City Manager Eden Freeman told the council the company wants to buy a building on Barfield Road and make a $4 million capital investment. But the possible improvements to the building became a sticking point. The council debated whether the city would forgive taxes for aesthetic improvements, like painting walls, or major renovations like replacing a roof or a building’s exterior.
Eric Nelson, the company’s president, told the council the company plans to put a roof on the building and make some interior renovations. Nelson declined to identify the exact location of the building.
“We’re just trying to figure out if there are any incentives the city would offer us in order to bring the business [here],” Nelson said.
But the city is still trying to figure out what incentives it will give companies like GT Software.
City Councilman Gabriel Sterling said he wants a broad set of rules to allow more flexibility for companies. He said the lack of an economic incentives policy is hurting the city.
City Councilman John Paulson and Mayor Eva Galambos said it shouldn’t be so easy.
“I don’t want a tenant coming in and saying, ‘I want two years worth of fees because I’m repainting the office I’m coming into’,” Paulson said.
“I want something that stays in the tax digest so we can continue to get the benefit of it as years go by,” Galambos said. “Tenant improvements come and go.”
In July, the City Council awarded incentives to a company reported to be Graphic Packaging that included waiving two-years’ worth of business taxes, up to $75,000 each year, a $35,000 one-time impact fee and a $3,887 permit fee to move to Sandy Springs from Marietta. The payoff for the city will be 289 new jobs with an additional 50 expected in the next five years.
City Council members assured the GT Software that it stands a good chance of getting an incentive to come to Sandy Springs.
“Fell good about it,” Sterling told Nelson.
