Alpharetta Development Authority explores innovative financing for city projects

The Alpharetta Development Authority meeting held on March 28, 2025, focused on various financial strategies and opportunities for economic development in the city. Key discussions revolved around the financing structures for development projects, particularly in relation to property tax breaks and the role of the development authority in facilitating these transactions.

One significant point raised was the standard practice in Georgia regarding conduit financing, where development authorities typically charge a profit of one-eighth of one percent annually. This fee structure has become common in multifamily transactions, providing a reliable revenue source for the authority as projects progress. The board expressed satisfaction with this approach during previous multifamily deals.

The meeting also clarified the ongoing role of the development authority as a conduit trustee throughout the life of projects. This role differs from property tax-driven deals, where the authority does not manage debt service payments directly. Instead, the authority remains involved in the project, ensuring compliance and oversight.

Additionally, the authority discussed creative financing options for city projects, including the issuance of bonds backed by the city through intergovernmental contracts. This method allows for higher credit ratings, making it easier to secure funding for public projects. An example cited was the financing of a conference center, which utilized development authority bonds supported by the city.

The authority also explored potential public-private partnerships, particularly in addressing community needs such as parking solutions. While the city has previously financed parking decks through general obligation bonds, there is interest in collaborating with private operators to enhance parking availability downtown.

In closing, the meeting highlighted the authority's ability to utilize fees for various economic development initiatives, including small business grants and other programs aimed at boosting local commerce and employment. The discussion underscored the importance of adapting to market conditions and leveraging available resources to foster growth in Alpharetta.