Columbus doesn’t give housing nonprofit controversial $10M grant — but the deal isn’t dead
A proposal to give a nonprofit headed by a Muscogee County School Board member $10 million of taxpayer funds to help build affordable housing in south Columbus did not pass this week.
But the hotly-debated measure is not dead yet.
The Columbus Council voted 5-4 on Tuesday in favor of the proposal, but it failed to get the necessary sixth yes vote. Councilors Charmaine Crabb, Toyia Tucker, Glenn Davis and Bruce Huff voted against the measure. Pops Barnes, the councilor who could have cast the deciding ballot, was not present at the meeting.
City Manager Isaiah Hugley plans to bring the proposal back in the future. City Attorney Clifton Fay told the Ledger-Enquirer that Hugley is allowed to do that because Tuesday’s vote was inconclusive.
At the center of the issue is Cathy Williams, who serves as a Muscogee County School Board member and Neighborworks Columbus CEO.
The housing nonprofit is seeking Tax Allocation District (TAD) funding —a financing tool that encourages projects in underdeveloped or blighted areas using public dollars — to help build 229 housing units at 1104 Leslie Drive. The funds would cover infrastructure improvements and financing.
The four opposing councilors have expressed their support for affordable housing in Columbus but previously posed questions about the legality of the deal because of the school board’s involvement with TADs. Huff attempted to push the vote on the proposal back to the next meeting, but that failed as well.
Legal opinions from Fay and unofficial guidance from the state attorney general have said that state laws governing TAD funds don’t apply to Williams in this case.
“I voted yes last time, and I’m still in support of the project,” Huff said during Tuesday’s meeting. “I just need that cleared up.”
The legal questions
Williams is seeking TAD funding for a development project called Elliott’s Walk, a partnership between NeighborWorks Columbus and First Baptist Church.
The new homes and apartments range from $120,000 to $165,000 in value, and the TAD funds represent nearly 19% of the project’s total construction cost. The money would be paid out over roughly 20 years, according to NeighborWorks and council documents.
That area falls into the South Columbus River District TAD. In a Tax Allocation District, a base property tax rate is set. Any revenue collected above the set rate is placed in a fund and can be used for infrastructure needs within the district.
Concerns about Williams and the project emerged shortly after the tax district’s boundaries were approved. State law prevents certain officials and employees from acquiring property, contracts or performing other transactions in the district.
But an opinion from Fay and informal guidance from Assistant Attorney General Zachary Johnson state the law doesn’t apply to Williams because the school board is an independent body.
Williams also recused herself from school board debates and the votes tied to the tax district.
“Because the Columbus Consolidated Government is the political subdivision which is exercising redevelopment powers in this instance, it appears that the School Board has no applicable association that would present a possible conflict of interest,” Johnson wrote in February 2021.
Councilor Walker Garrett, an attorney and member of First Baptist Church, said during Tuesday’s meeting that a local real estate attorney and “some of the best law firms in Georgia” have reviewed the deal and found no conflict.
In previous interviews with the Ledger-Enquirer, Councilor Glenn Davis said the deal stands against what he’s been told about TADs. He alleged the city legal department previously told him elected officials, on the council or the school board, couldn’t be involved in TAD developments.
What happens next?
Williams told the Ledger-Enquirer that she was disappointed that Tuesday’s vote didn’t pass because it will further delay construction.
“Time is money in development, whether it is nonprofit or for-profit,” she said. “I’m still incredibly hopeful that this will happen there. ...I’m really happy it’s going to be brought back.”
In a statement to the Ledger-Enquirer, Hugley said he was bringing back the measure because Columbus residents deserve more affordable housing.
“Affordable housing for this community, specifically in an economically depressed area of south Columbus is too important to give up on,” he said. “We are too close to remaking/revitalizing this area on Leslie Drive. I applaud NeighborWorks for their perseverance and not pulling the plug on this important project.”
This story was originally published April 13, 2022 at 12:01 PM.