Sandy Springs City Council approves $4M infrastructure agreement for parking garage development

The Sandy Springs Development Authority convened on June 5, 2025, to discuss significant developments regarding a new parking garage and associated infrastructure improvements in the city. The meeting focused on a development agreement with Grama Pro, which will oversee the construction of 111 parking spaces at a cost not to exceed $4,000,008.77. This cost is notably low compared to typical general contractor fees, with a rate of 3.5% applied to the project.

A key point of discussion was the tax implications of the development. Currently, the property is exempt from taxes as it is owned by a nonprofit organization. However, once developed, it will be added to the tax digest, generating an estimated taxable value of approximately $131 million. This is expected to yield around $1.6 million in property taxes in the first year, with projections indicating a growth rate of 3% annually over the next decade.

The meeting also addressed the proposed tax abatement plan, which would reduce property taxes by 50% in the first year, decreasing by 5% each subsequent year until the property is fully returned to the tax rolls after ten years. Over this period, the estimated abated taxes total approximately $4 million, with a net present value of around $3.6 million.

Funding for the infrastructure improvements, estimated at $900,000, will be sourced from the tax revenues generated by the development. These improvements are aimed at enhancing pedestrian safety and overall accessibility in the area, including potential upgrades to roadways and sidewalks.

The authority emphasized that these infrastructure enhancements are discretionary and not mandated by the development code, allowing the city to leverage this project to fund necessary improvements. The meeting concluded with a timeline for the project, indicating that the council will review the agreement on June 17, with execution and closing expected later in June.

Overall, the meeting highlighted the strategic financial planning involved in the development project, aiming to balance growth with community safety and infrastructure needs.