The Sandy Springs City Council passed a resolution at its March 17 meeting that authorizes a citizen referendum this November on the city’s right to create redevelopment areas and tax allocation districts.
City Attorney Dan Lee said the Sandy Springs legislative delegation requested that city officials approve a resolution affirming their desire to change the city charter and pursue redevelopment powers through a referendum this fall.
“One of the tools we have not made use of is the Georgia Redevelopment Powers law,” Lee said. “In that, tax [allocation] districts would be allowed, which is a wonderful tool used by many local governments to set aside tax growth in certain areas to be applied to infrastructure improvements and to incentivize private developers to provide certain amenities to a development.”
Redevelopment requires legislation
House Bill 1535, sponsored by all four state legislators in Sandy Springs, would put a citizen referendum on ballots this November if it clears both chambers of the Georgia General Assembly.
“The people of Sandy Springs would have to authorize this,” Lee said.
A city memo says if the referendum is approved by voters, the Sandy Springs City Council could designate redevelopment areas, establish tax allocation districts, and issue tax allocation bonds.
A TAD, or tax increment financing, does not impose a new tax on property owners in a certain district. Instead, it redirects an increment of a geographic area’s property taxes to fund new projects, like mixed-use developments.
Elected officials approved the resolution unanimously without discussion. Council Member Melody Kelley, who represents the west side of the city’s North End, celebrated its approval with a double fist pump.
North End commercial struggles
Sandy Springs officials have been discussing the redevelopment of the city’s North End along Roswell Road for several years without much movement from developers. At its annual retreat in early February, elected officials discussed the legislative process to create a TAD to support North End redevelopment.
The city council also discussed the next steps for the 2021 North End Revitalization Plan, which lost momentum during the COVID-19 pandemic amid high inflation and borrowing costs.
While no announcement has been made, city officials have encouraged the Sandy Springs Development Authority to pursue conversations with the North River shopping center at 8767-8911 Roswell Road.
Some options the city is evaluating include deals to secure city-owned green space and parking spaces. The development authority’s approval of a tax abatement would not require a legislative change, referendum, or citizen approval.
In KB Advisory Group’s presentation analyzing tax digest trends, consultants said they found North End rents lagging behind the rest of the city’s commercial areas.
“Despite lower rents than the combined averages for the city as a whole, north Sandy Springs consistently has higher vacancies,” the presentation said. “For the past 15 years, vacancies in the area have grown in the office sector, remained stable in
the multifamily sector, and decreased in retail.”
Other business
- The council approved a $1.46 million contract with Rhodeside & Harwell, TSW Design, and KB Advisory for the creation of the 2027 Comprehensive Plan, set to be adopted next summer.
- Elected officials, acting in their roles on the Sandy Springs Pubic Facilities Authority, approved a $1.45 million contract with Reeves and Young for pre-construction services related to the rebuilding of Fire Station 1 and 4.
- Council members approved a lease agreement at 8615 Roswell Road for $15,000 a month while Fire Station 1 is being rebuilt. Another $300,000 of capital contingency is earmarked for the temporary station’s build-out.
- The panel passed an ordinance that heightens regulations on massage parlors and spas through licensing and document requirements, time restrictions, and a mandatory human trafficking awareness program.