GUEST BRN BLOG BY JULIAN BENE

You may have seen press reports in the past few months about the scandal at the Development Authority of Fulton County (DAFC). DAFC board members had been helping themselves to cushy per diem payments and other perks, using cash that DAFC earns on its tax break deals.

So who cares? You should, and here’s why.

The breaks that DAFC has been doling out come at the expense of Atlanta Public Schools and of city and county services – and of local taxpayers. Why would it be necessary to reward developers for building in Atlanta’s hottest markets?  The answer: it’s not.

DAFC’s deals reduce a project’s first ten years of property tax by 27.5%. Since 2018 alone, DAFC abatements have totaled $328M, mostly on developments in Atlanta. $58M of those breaks come at the Beltline’s expense. Projects that benefit from the public’s huge investment in the Beltline don’t pay back their fair share. DAFC’s biggest Beltline break was $16M for the Star Metals mixed-use Howell Mill project. Star Metals -- like other Beltline-adjacent projects -- can also take a tax write off for all money spent on environmental remediation. This is a gift to the legacy owners of polluted sites - at our expense. 

Numerous other breaks have stunted the Beltline’s revenues. The Beltline’s highest-value property -- Ponce City Market -- has paid next to nothing in tax thanks to a state historic rehab provision, costing the Beltline up to $140M. And worse still, Fulton assessors systematically undervalue big commercial properties. 725 Ponce, a prestigious new office development on the BeltLine, just sold for $300M, but was valued at $103M!

All this reduces funds for meeting the Beltline’s promises on transit and affordable housing. The public needs to demand a stop to DAFC breaks for projects in hot markets like around the Beltline and reform of commercial assessment so that big properties pay their fair share in property taxes.

Julian Bene is a 33 year Atlanta resident and is a retired management consultant with a Harvard MBA and an econ / pol degree from Oxford. From 2010 to 2018 he was on the board of Invest Atlanta, the city's economic development arm, where he challenged instances of corporate welfare. He has continued to champion equity in economic development through the Redlight the Gulch coalition and by researching and speaking out against wasteful commercial tax breaks and underassessments.