Roswell council adopts development finance program to support new hotels, approves intergovernmental agreement

Roswell Mayor Curt Wilson and the City Council voted unanimously Monday to adopt an ordinance establishing the Roswell Development Finance Program and to approve a companion intergovernmental assessment agreement with the Roswell Development Authority (RDA).

The program uses authority under OCGA 36-62-17 — the Commercial Property Assessed Conservation, Energy and Resiliency Act (commonly called CPACER or CPACE) — to enable third-party capital to fund eligible energy, water conservation, renewable energy and resiliency improvements on qualifying projects. Daryl Connolly, the city’s director of economic development, told council the program is narrowly targeted to help new hotel projects become financially feasible by replacing higher-cost mezzanine financing with lower-cost special-assessment-backed capital.

The ordinance and the intergovernmental assessment agreement together establish the program’s structure and assign the RDA and the city defined roles: private capital provides loans; participating property owners enter voluntary assessment agreements; the city levies and collects special assessments and serves as program administrator and servicer under an IGA with the RDA.

Daryl Connolly described program mechanics and fees: a $500 nonrefundable application fee due at application; an administrative fee of 1% of the loan amount due at closing; a legal fee of 0.5% (50 basis points); and an annual servicing fee of 1% to cover program operations. Minimum thresholds in the guidelines presented to council require a minimum project value of $20,000,000 and a minimum loan of $4,000,000.

Councilmember Lee Hills asked whether the program included abatements and whether taxpayer exposure exists if a project owner fails financially. Connolly and staff clarified that no tax abatements are part of the program and that the capital comes from third‑party lenders, not city funds: “The loans are from third party capital providers. They are not city funds,” Connolly said. Council members and staff explained that the loan repayment is made through a special tax assessment on the property and that the assessment mechanism lowers lender risk and thereby reduces the interest rate compared with mezzanine debt.

A resident asked whether the program sets a maximum loan or assessment; staff said the ordinance establishes only minimums and that any maximums would be determined by market negotiation with private capital, not by the city.

Action and vote details: Councilmember William Mortland moved to approve the ordinance adopting the Roswell Development Finance Program (second reading); Councilmember Alan Sells seconded. The council recorded a unanimous vote, 6–0. Separately, council approved the intergovernmental assessment agreement enabling the city to administer assessments under the program; that motion also passed 6–0.

The city presentation said adoption permits an immediate program launch, with a program guidebook and application materials ready for prospective hotel developers. City staff said the program is structured as a test limited to hotels; council may consider later expansions to other property types.

The vote means Roswell will now accept voluntary assessment agreements from property owners and partner with private capital providers via special assessments to fund eligible improvements for qualifying hotel projects. Staff said fees collected will be used to offset city administrative costs for program operation.

The ordinance, program guidelines and the IGA were approved on second reading and will be implemented under the RDA-administered framework negotiated in the IGA.