Proposed North Columbus TAD project returns to Columbus Council despite concerns

A proposal that would turn nearly 300 acres in north Columbus into a Tax Allocation District, a designation normally reserved for distressed areas, returned to Council Tuesday despite concerns expressed earlier by the mayor and some councilors.

Flournoy & Calhoun Realty, the developer proposing the project, first presented the plans to Council in December. But the proposal was postponed because some councilors felt they needed more time for consideration.

On Tuesday, City Planning Director Rick Jones told councilors they were only being asked to designate the area located at J.R. Allen Parkway and Manchester Expressway to potentially be developed as a TAD. He said the proposed project would still have to be scrutinized by a TAD committee that consists of staff and representatives from the Muscogee County School District before coming back to Columbus Council for final approval.

A public hearing was held at Tuesday’s meeting, and another is scheduled for the city’s next regular Council meeting, which is scheduled for Feb. 13 at 9 a.m. at the City Services Center. At that meeting councilors are expected to vote on the TAD designation.

The property contains five parcels that include the former Swift Denim Mill that has been vacant for more than 10 years. It consists of 289 acres.

Kenneth Bleakly, of the Bleakly Advisory Group, spoke again on behalf of the realty company. He said numerous proposals to acquire and redevelop the site gained no traction over the years because of the costs to clear the site and bring in infrastructure.

If approved, the final project called Midland Commons would consist of 533,000 square feet of retail and 250 senior housing units on the site, according to information provided by developers. The redevelopment would also include traffic improvements along J.R. Allen Parkway for access and egress in and out of the property.

The project would become the city’s seventh TAD since voters passed a 2014 referendum, after rejecting a similar one in 2007. TADs already have been approved for Midtown East and Midtown West, Fort Benning Technology Park and the River District Development Plan, which includes Sixth Avenue/the Liberty District, Uptown and Second Avenue/City Village.

When a TAD is approved, the city can issue revenue bonds to remedy infrastructure and environmental problems, as well as other issues that might hinder development. The extra tax revenue created by the project is then used to repay the revenue bonds over the life of the TAD, usually 20-30 years. The extra revenue then goes into city and school district coffers.

In December, Mayor Teresa Tomlinson, who was absent from Tuesday’s meeting, said “it’s not the public’s role to subsidize private development.” She believed the first TAD referendum failed in 2007 because voters feared the funds would benefit private developers instead of distressed communities.

On Tuesday, Theresa El-Amin, of the Southern Anti-racism Network, expressed similar sentiments.

“I just heard a part of this conversation, and it seems it’s all about the north side,” she said. “This is a community where transportation problems are so significant that all of those jobs on the north side, people can’t get to them.

“... I voted against the TAD because to give up your right to have some say on economic development for 30 years, when you’re paying the most regressive taxes you can pay in terms of sales taxes. You try to make money off of sales taxes when you have a property tax freeze. This is the most backward thing I’ve ever heard of in terms of city development.

“And in this election year when so many of you are running, we need to raise these issues about what is fair and what is blatantly unfair to a significant part of the population of this community,” she said. “It’s just wrong. It’s just wrong.”

Bleakly said developers did an analysis and the taxable value of the TAD is expected to increase six-fold by $19.5 million. The city would continue to receive the $137,000 in property taxes that it currently gets for the life of the TAD.

“As a result of the redevelopment, the city will see property taxes grow from $137,000 to $928,000 annually, once any TAD obligations are paid,” according to information he presented to the city. “In addition, the city will receive any increase in personal property taxes from new development as they occur.”

He said the development is expected to create 750 permanent jobs and any LOST and TPLOST revenue generated by the retail activity in the TAD will go to the city.

“Creation of TAD #7 by the City of Columbus would have a substantial net positive impact on the city by restoring a vacant industrial site to productive commercial use, creating a significant number of new permanent jobs and increasing the city’s tax base,” according to Bleakly’s presentation.

Also speaking on behalf of the project was Brian Sillitto, executive vice president of economic development at the Greater Columbus Chamber of Commerce, who also represented the Development Authority of Columbus.

After the plant closed in 2006, he partnered with the brokerage community to show the building to possible developers to return it to an industrial site. Over the years, the projects never materialized due to the impediments.

He said traffic problems are due to economic development occurring at Technology Park and other areas.

Sillitto said the Development Authority voted unanimously to support the TAD at a recent meeting because they think it’s a good fit for developing the property. After hearing the presentation, the reaction from councilors was mixed.

Council Glenn Davis said he was having a difficult time understanding the analysis.

“Clearly, I think it’s clear to say, and it’s accurate to say, that the analysis is based on a best-case scenario,” he said. “We’re working on speculation right now. I’m a little concerned with how the projections are coming out. Logically, it’s just not adding up to me.”

Davis said councilors recently received current revenue numbers for the six TADS that already exist. He said for three of them the revenue is zero; the other three combined are generating $90,000 in total revenue. And that’s impacting the city’s General Fund, he said.

It would probably be 10 to 15 years before developers on the proposed project would have enough money to offset the debt that they will incur along the way, he added.

Davis said he’s in favor of the city helping the developer with the project, but he just doesn’t think a TAD is the right way to do it.

Councilor Gary Allen said he has met with residents in the area who don’t want apartments there. So, he likes the plans presented.

“I’m excited about this project. I’m glad it’s here. And I ask my fellow councilors to approve the TAD,” he said. “And if they have to make changes in the future, then we can do that.”

Councilor Judy Thomas said she has received calls from residents in the Beaver Run area complaining about traffic, particularly at morning and night.

“If we put into that area another major apartment complex, senior citizens complex, retail complex, it’s just going to exacerbate that traffic. Is it not?”

Jones, the city’s planning director, said all of that would be scrutinized as part of the vetting process.

This story was originally published January 24, 2018 at 5:00 PM with the headline "Proposed North Columbus TAD project returns to Columbus Council despite concerns."