A performance audit completed by the City of Atlanta shows Invest Atlanta has inflated the positive effects of tax allocation districts (TADs) as the Neighborhood Reinvestment Initiative (NRI) makes its way to a city council vote.
Atlanta’s long-term strategy to address underserved communities while redeveloping residential and commercial property is being reviewed at Atlanta City Council committee meetings this month, which is budget review season at city hall.
NRI was created to revitalize underserved neighborhoods in Atlanta by freezing the property tax base in TADs and feeding new revenue into affordable housing developments, healthcare, transit, and early childhood education centers. There are currently eight active TADs.
Issued by the city’s own auditor’s office, the report requests transparency and accountability from Invest Atlanta, the manager of operational and financial aspects of TADs. The auditor’s office recommends tying funding and activities to redevelopment goals to increase “stakeholders’ ability to understand district progress.”
“Invest Atlanta’s reports to City Council do not provide a cohesive, goal-oriented view of how district funds are planned and used, or how they relate to redevelopment outcomes,” the report states.
According to the report, all but one of the remaining districts have enough funds to pay off existing debt and potentially close. While assessed values are up, showing that public investment has spurred significant growth in property values, performance varies.
Invest Atlanta says property values within a half mile of the districts are up. However, the report states that because the “halo areas” represent nearly half of the city’s property value, it is difficult to distinguish the effect of the districts on the “halo areas” from the rest of the city.
“Our analysis found a much smaller potential halo effect than was reported by Invest Atlanta,” the report states.
TAD funding of community reinvestment has been a hot-button issue, drawing public criticism from residents.
Atlanta resident Nell Pepper and Housing Justice League Organizing Director Matthew Nursey spoke against TADs at the May 18 city council meeting.
“While the TADs have been touted as a solution to Atlanta’s inequality, the funding from the existing tabs has most benefited the private developers, whose property taxes have been frozen … glassy high rises full of luxury condominiums are robbing Atlanta Public Schools and city services of crucial funding,” Pepper said.
“We need to stop relying on institutions like Invest Atlanta. We need to start developing alternative revenue sources. Private development got us into this mess. It’s going to take public development to get us out of it,” Nursey said.
Marvin Nesbitt, president of nonprofit Focused Community Strategies, is fighting to keep TADs and pass the NRI plan. He spoke at a June 9 committee meeting.
“We need every single tool in the toolbox, and TADs are proven to be a vital tool,” Nesbitt said of bringing equality to Southside residents. “By choosing the TADs and investing in NRI, you have chosen to invest in communities that have waited the longest.”
In May, Dickens announced a plan to drop two of the original eight TADs when they expire: the Beltline TAD, the largest and set to expire in 2030, and Perry-Bolton TAD, which expires in 2041. The Beltline TAD brings in around $80 million in annual revenue.
Westside, Eastside, Campbellton Road, Hollowell–Martin Luther King Jr., Metropolitan Parkway and the Stadium Area TADs would be renewed under Dickens’ proposal.
The last audit was conducted in 2021. Invest Atlanta President and CEO Eloisa Klementich reported that all recommendations from a recent city audit – including enhancing redevelopment goals, strengthening transparency, and expanding public-facing reporting tools – are being implemented.
If NRI is approved by Atlanta City Council, the city will engage partner jurisdictions, finalizing impact metrics, updating redevelopment plans, preparing projects for a future bond package and launching anti-displacement programs.
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