Creative Loafing has an interesting story about the the New Broad Street deal for the GM Plant. The article quotes Real Estate Service firm, Carter and Thompson Dawson on their skepticism about the feasibility of the proposed development. Also, it mentions that under the current deal, Dekalb County would pay for the project’s infrastructure through bonds. These bonds wouldn’t be repaid for by the development’s success, but instead by millage rate increases for all citizens of the County.
It was not a big surprise, and reported widely elsewhere, so I hadn’t bothered writing about it here, but on October 20, the City Council put out a press release stating that they were all 100% against the Falcons stadium moving to the city.
This story has gotten fairly wide coverage for something that was just “in the early negotiation stage,” although the actual reaction has been somewhat muted. On today’s Georgia Gang, however, there were a couple of segments where the panelists said that the council members are making a big mistake and squandering an opportunity because of petty politics. Jeff Dickerson even made the Doraville City Council his losers of the week for putting out this press release! Of course, none of them would have to live within a mile of a monster football stadium. A clip of the show is below:
Luke Howe sent me this statement from the mayor on the GM Plant, asking me to post it here:
Dear Residents,I understand the stories surrounding the GM property have caused some concern, so I would like to take this opportunity to address those concerns. First of all, don’t mistake our silence for complacency or inaction, and please don’t buy into the distorted facts and the over-dramatized interaction with the county.
I have met with the CEO five times on the plant redevelopment. Twice with my staff present then three more with the council. Mr. Ellis never threatened nor did he try to shove ideas down our throat. These meetings were more like brainstorming sessions. Ideas were purely hypothetical, so certainly nothing was officially proposed or agreed upon. Did he have his own opinions? Sure, but one sentence he repeated over and over was “if Doraville isn’t on board then it won’t work.”
As far as the County purchasing the property, let’s keep a few other facts in mind. On Monday, September, 28, the Georgia Supreme Court nixed the County’s sale of bonds without prior voter approval, and according to DeKalb County’s spokeswoman, “we are not in the position to buy anything” (North DeKalb Neighbor, 10/14/09). The current economic climate and recent articles in the Atlanta Journal-Constitution about the County’s financial situation seem to reinforce this statement.
Make no mistakes. We realize the importance of this redevelopment and what it means to the future of our town. We have and will continue to chart a course based on the comprehensive plan, LCI and Georgia Tech study. In that pursuit, we will not waiver. These studies, as you know, call for a mixed-use development, including green space, retail, entertainment, residential, office and institutional and civic uses for possibly new facilities or even a fire station.
Planning also highlights voids in our local economy such as the lack of professional jobs particularly in the health, scientific and technology fields, so it would be beneficial to include a light industrial use in order to accommodate an innovation incubator. Life sciences and other innovation-based industries would attract major incentives from the state; generate high paying jobs and a greater demand for the other components.
These types of jobs must be created to strike a more equitable balance between rentership and ownership. Another important residential need is senior housing, which would follow the “Aging in Place” model set forth by the Atlanta Regional Commission (ARC), allowing aging residents to stay in town rather than leave.
Since we are the only DeKalb city that doesn’t have its own high school, I, along with our education officials and state legislators, would like to see a charter middle/ high school that would focus on math and science. If we relocate our town center a school could occupy our current civic area. If not it could be a civic use within the new development.
In any event, a school would serve as a fitting legacy for General Motors and compliment the outstanding work that Oakcliff Elementary is doing in these subjects. It would also dovetail nicely with development’s innovation component.
All these things I have discussed are fundamentals needed to sustain and strengthen a local economy, one that can not only weather economic storms but support the retail establishments we all want.
Lastly, I would like you all to know that we will be working to obtain pieces of the plant, machinery parts and other artifacts before demolition concludes. These pieces of our past could be use for a future history museum or converted into industrial art.
In sum, we will warmly welcome elected officials and other entities who wish to help further our goals. After all, these needs and wants are not only good for us but our neighboring communities, the county, metro area and state as well. Any challenges to those goals, however unlikely, will be met with all the resistance we can muster. But rest assured, as long as we holdfast to our sound planning there’s no need to worry.
We have been through a lot, but we have a bright future. We will continue to work hard and do everything possible to realize our ultimate goal of renewal and revitalization.
Finally, let me leave you with this promise: However benign these meetings with the county were, we will conduct future meetings between the county and council in public to ensure greater transparency and citizen interaction. I hope this message eases anxieties and clears up the rampant rumors and innuendo. Thank you for support, and as always please don’t hesitate to call on me for any assistance or further clarity.
Sincerely,
Mayor Jenkins
Big news about the GM plant site — councilman Bob Roche just confirmed for me a rumor that I heard earlier this weekend that Dekalb county is considering a purchase of the site in partnership with a developer.
The implications of the development deal are big. According to councilman Roche, the city will no longer have any zoning power over the former GM property, and will lose tax revenue from it (several hundred thousand a year). It will be effectively de-annexed from the city (although Doraville will still set closing times and other similar ordinances). The county has suggested that they can patrol the site using Dekalb PD, therefore not taxing our current police forces.
The developer is New Broadstreet, based out of Orlando. The company’s president, David Pace, helped develop Disney’s Celebration USA outside Disney World. The company’s website says it is committed to New Urbanist principles — which include walkable neighborhoods, and mixed-use developments that adhere to the work-live-play philosophy.
I’ll be honest – as things stand right now, I think the prospect of getting New Broadstreet involved in Doraville is a potentially very good thing for city, and could help us achieve some quality development that we have been missing for a long time. My main concern is that the county has not yet announced its intentions and as Bob Roche said: Once they own the property, they could put a smelting plant there if they wanted. For now, though, I am cautiously optimistic.
[EDIT 9/21/2009] Bob Roche just wrote me to say that DeKalb’s main plan for the space would be a Falcon’s stadium, with mixed use as a “Plan-B.” Obviously, a stadium would have major implications for all residents of Doraville in regards to traffic, property-value, and the quality of future developments in the city.
This is old news to many of you, but early this week a big announcement put Doraville back in the spotlight. The AJC reported that Sembler & Co — the only developer still negotiating with GM for their former Doraville plant — has floated a proposal to build a new football stadium for the Falcons on the site.
In most cities I’ve traveled to, the areas around sports arenas have been wastelands that people don’t feel safe driving through. They increase traffic & inconvenience nearby residents. I personally doubt that a stadium would do much to improve property values for current homeowners in this area.
What is interesting is how this idea has created some strange bedfellows. City councilman, Bob Roche has come out in favor of the idea as has his opponent in the last council race, Chris Avers. The other council people seem to be keeping their mouths shut for now, although on one message board councilman Spangler’s wife made a comment that this proposal is essentially vindication for Tom Hart, proving he was right about the way to “revitalize” the city.
This is fairly big news – even being discussed on this morning’s Georgia Gang. What do you think about the proposal? Is this the best use of the land the GM plant sits on? Is it realistic? Will it be the best thing for Doraville’s current residents? Since most of these developments are subsidized by local governments, I think that makes Doraville an especially unlikely spot for this stadium.
Check out the video clip below of a recent newscast that discusses the GM site and its redevelopment. Vernon Jones, with Mayor Jenkins standing to his left, speaks at length about the county’s commitment to get this project right. I heard on the radio yesterday that GM has received over 1000 inquiries about the site from all over the world. This has the opportunity to be something very special.
A huge thank you to the Dunwoody North Civic Association blog for putting this video out there. That site is one of the best sources for news about North Dekalb County — whether online or off.
At the end of September, the Doraville GM plant will finally close its doors for good. In preparation, the auto maker has put the property up for sale and has submitted Requests for Proposals to various developers. According to the AJC, GM hopes to have the property sold by the end of the year.
The way this site is redeveloped will be a “make or break” moment for Doraville. CB Richard Ellis, the real estate broker that GM has brought on to help them with the sale, has set up a website called The Doraville Project that explains the site to potential developers. Here’s what they say:
Located along I-285 northern arc, on the inside of the loop 165+ generally level acres Dramatic I-285 frontage with unobstructed visibility at grade Drive-by traffic counts of over 270,000 cars per day Full-motion expressway interchanges flanking the site east and west at major four-lane North/South regional surface highways, which connect Atlanta’s CBD with its outer suburbs Expressway on/off-ramps and dedicated site access road sized for major facility “rush hours” Adjacent to MARTA rail station at the northeastern line’s point of origination In-place utilities robust enough for a small city and included redundancies A line-up of city, county and regional governments supportive of dense redevelopment Potential for public sponsored financing that would substantially offset infrastructure costs Dramatic good-will potential for “going green” Situated along Peachtree Road, metro Atlanta’s most celebrated street
It’s obvious from all of this that what the GM site really has going for it is its close proximity to transportation — right off 285, Buford Highway and Peachtree Industrial Blvd, it is also adjacent to the Doraville MARTA station. Definitely prime real estate that is currently not living up to its full potential. In fact, the Atlanta Business Chronicle quotes Dan Reuter from the Atlanta Regional Commission as saying:
“Its access to MARTA is such an advantage [...] if you look at development trends in the coming decades, and gas prices that are likely going to keep rising during that time, this site’s access to mass transit is a tremendous opportunity, and that’s what makes it such an important site for Doraville.”
I hope the current credit crisis doesn’t affect what gets developed. It would be a shame if the current (hopefully temporary) economic situation ends up having a negative effect on our city for the next 30 years.
Edit (3:44pm) – I just received the following press release from the Mayor’s office regarding the GM Plant:
FOR IMMEDIATE RELEASE – May 22, 2008
Contact: Luke Howe 770-883-8452 or luke.howe@doravillega.us
Statement from Mayor Ray Jenkins on GM plant redevelopment
In 1947, General Motors opened its 165 acre assembly plant, transforming Doraville from a sleepy community into a formidable industrial center. Since that time, the City and GM have forged a strong bond and an even stronger friendship. GM made Doraville and it will be sad to see them leave. Much like their arrival, GM’s departure will signal a defining moment for the City.
Our partnership with GM is as strong as ever and we will continue to work closely together throughout the post closing process. We share a common vision with GM, a vision for a transit oriented, mixed-use development complete with office complexes, a new town center and much more.
Doraville is a major gateway into the heart of Atlanta. It is a city teeming with redevelopment opportunities, and we are gearing up for major work throughout the City. At the center of our redevelopment activity, of course, will be the GM property.
Its redevelopment presents many opportunities and it will certainly have a ripple effect throughout the New Peachtree/ Shallowford corridor, an area that is also ripe for revitalization.
We look forward to an upcoming meeting with representatives from GM, at which time we will discuss all the details reflecting our common vision. After the property changes hands, we fully intend to work as closely with the new owners as we have with our friends at GM.
As developments happen, the area news agencies will be the first to know.
Is anyone knowledgeable as to what is likely happen to the GM Plant’s assessed property value for property tax purposes after plant operations cease and the property sits idle?
I suppose GM could seek a reduction in appraised value if plant tooling and fixtures of a size and scale that are included in the property’s value are removed or scrapped. GM could conceivably seek a decrease in assessed value based on the cost of remediating any environmental hazards left behind.
I think it difficult for the county to increase assessed value prior to sale, the property not being subject to comparable sales valuation (though there are state guidelines about the assessed value of unusual properties). My guess is that the appraised value stays the same over time as the property sits idle without being sold, less any immediate removal or devaluation of tooling.
General credit market trouble arising from subprime mortgage troubles probably have the commercial/industrial real estate market treading water. A frozen assessed value becomes a drag on the city budget as the value of other properties increases, even if only at the rate of inflation. Regardless of exact circumstances, a frozen assessed value will not adversely impact Doraville property tax revenue/millage rate in the near or medium terms, the city being able to adjust its budget over time if redevelopment/reuse is delayed, unless there is a substantial initial reduction in assessed value.
This is an article from the AJC about the redevelopment of Fort MacPherson, when it is vacated by the US military in 2011.
The site is much larger than the GM plant site that Doraville should be dealing with right now, some 488 acres compared to the roughly 130 acres remaining on the GM site for redevelopment. The current GM site is comparable to the 138 acre Atlantic Station site, making the common comparison a meaningful one. That would make the site size appropriate for a similar development, with significant numbers of single family homes, condos, and townhomes, along with a retail portion including grocery and dining opportunities.
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Karen Pachuta asked me to post this:
Neighbors – Something for us to watch – I’ve heard a rumor that General Motors wants to de-annex itself from Doraville and become part of unincorporated Dekalb County. Currently, in order for GM to de-annex, it would need the permission of Doraville. HOWEVER, there is pending state legislation that would take that power away from a municipality. HB 123 and SB 110 did not succeed this session, but are still alive for 2008. Both bills would permit a landowner to de-annex itself from a city by just having the county pass a resolution consenting to that property becoming part of the un-incorporated area. With all the concern about whether the Doraville annexation bill would pass, I’m surprised that I never heard about either one of these bills! This is definately something to carefully watch.
Losing the GM property to unincorporated Dekalb would be a huge blow to Doraville and we need to be pro-active in preventing that from happening – including passing new zoning ordinances and generating a plan for the GM re-development!