The company set to construct a new hotel on Hammond Drive in Perimeter Center is on track to receive a $38 million tax break from the Dunwoody Development Authority.
The Dunwoody Development Authority and Concord ATL Perimeter LLC entered into a memorandum of understanding on Nov. 30 that will grant the $38 million tax abatement over 10 years. The final revenue bond agreement is set to be made early next year, according to Economic Development Director Michael Starling.
Concord ATL Perimeter LLC is set to construct a 10-story hotel with 177 rooms at 1134 Hammond Drive. The company is a division of North Carolina-based Concord Hospitality.
A 16-story office tower is also going up right next to the hotel, but that project is separate from the hotel project. Trammell Crow, developer for the office building, for its project early next year, Starling said.
“Although owned by two separate companies, they will happen together,” Starling said of the hotel and office tower.
The City Council approved the office building and hotel project Oct. 9.
Plans are for the office building to break ground in April and the hotel to break ground shortly after that, Starling said.
Under such tax abatement deals, the authority would own the property and lease it back to the developers, who would pay much lower property taxes in the beginning and then gradually increase the amount over many years. Ownership would eventually switch back to the developers.
“Their [Concord ATL Perimeter] abatement over 10 years is $3 million,” Starling said.
Starling said the Concord’s $38 million investment in the hotel project is significant for the city because the property is currently an underutilized parking that is part of Perimeter Mall that provides little property tax revenue to the city. Under the current hotel motel tax rate, the city will receive approximately $2.3 million over 10 years, Starling said.
Concord ATL Perimeter LLC has not entered into an agreement with a hotel yet, but has been in talks with Mariott and Hyatt, Starling said. The hotel is expected to be similar to an “AC brand” hotel and more of a boutique style of hotel, he added.
Starling said the DDA is considering making public art as part of the final tax break deal and that Concord ATL Perimeter LLC representatives are open to the idea. The public art would be part of a placemaking initiative in Perimeter Center.