Sandy Springs authority approves purchase of 111 parking spaces at Hillcrest; council abandons 2018 slope easement

The Sandy Springs Public Facilities Authority voted Tuesday to ratify easement and parking agreements that will let the city acquire 111 parking spaces in a 646-space garage planned for the Hillcrest mixed-use development at 6150 Sandy Springs Circle. The City Council separately approved abandoning a 2018 slope construction and maintenance easement on the same parcel, clearing a technical title issue needed for the development.

The authority’s director of economic development, Chris Burnett, told members the city would own 17.2% of the garage’s spaces and finance the purchase through a 10-year tax-abatement arrangement. "The city will own 17.2% of the total parking spaces in the garage," Burnett said, and the city will place construction and acquisition funds into an escrow account to be administered by the city and held at Truist Bank.

The vote ratified two PFA actions: the execution of easement agreements to secure the 111 spaces and a budget amendment to make project funds available. The PFA approved agenda item PFA 20 25-12 (parking agreements) on a motion by Councilmember Melissa Mueller, seconded by Jody Rochelle, and approved agenda item PFA 20 25-13 (amending the FY2026 budget to purchase the spaces) on a motion by Mueller, seconded by John Paulson.

Why it matters: The acquisition gives the city guaranteed parking capacity in the City Springs district as the Hillcrest development — led by a Trammell Crow Company partnership — moves forward. Council and authority members asked how the city will control costs and revenues tied to the spaces and how the arrangement will affect future city budgets.

Key financial and operational details discussed - Garage size and city share: The full garage will have 646 spaces; the city will acquire 111 spaces (about 17.2% of the total). - Construction and escrow: Burnett said roughly $3.0 million of escrowed funds are earmarked to pay construction of the 111 spaces, which he described as "just slightly under $30,000 per space." Those funds will be drawn on as construction progresses and after review of draw requests. - Fees and contingencies: Burnett said the deal includes a developer fee (described as about 3.5% of hard costs) and a contingency reserve of roughly 5% for unforeseen construction issues. - Streetscape funds: An additional $900,000 will be set aside for nearby road, safety and streetscape improvements around City Springs, funded through the same tax-abatement structure. - Tax abatement structure: The abatement will run 10 years, beginning with a 50% reduction in assessed taxes in year one and declining about 5 percentage points each year thereafter; Burnett said the abatement proceeds are expected to provide the cash flow to repay the city’s upfront investment over that period. - Buyback option: The agreement includes a developer buyback provision. Burnett said Trammell Crow could repurchase the 111 spaces for a stated price of $6,624,000, reduced by credits for revenue the city has collected if a buyout occurs. - Operations and revenue: The city will receive revenue from its 111 spaces and will pay 17.2% of the garage’s operating costs (maintenance, utilities, insurance, parking management fees). The parties expect a joint parking-management arrangement and accounting and "true up" processes so city and developer records align.

Questions from members and staff safeguards Councilmembers asked who will inspect construction draws and whether the city will hire an independent construction management firm. Burnett said the city has not finalized who will serve as the city's on-site representative and "more than likely, we'll bring in a firm that specializes in independent construction management," but said the project lender will also perform inspections. Council members also sought clarity on which line items count as "operating expenses"; Burnett listed maintenance, restriping, insurance, utilities and parking-management fees as examples.

Budget source and repayment path The PFA voted to reallocate $4.4 million that had been reserved for a separate initiative (discussions with the Georgia Commission on the Holocaust) into the escrow account for this purchase. Burnett said that reallocated funds plus other amounts will provide the near-term cash required; if a remaining funding gap appears later, staff said it would return with a request for additional funding, likely from the general fund. On how abatement payments flow, finance staff (Tony) explained that pilot/abatement payments are collected to the development authority under the agreed arrangement and ultimately are handled in the same way other pilot payments are processed now; the current practice routes pilot proceeds into the general fund after the authority’s processes.

Event parking and temporary overflow Burnett said the city will reserve its 111 spaces for designated major City Springs events and that, for other nights, revenues from city spaces used by restaurant or retail patrons will go to the city. He noted the city could use several nearby parcels (to be graveled) as overflow parking during construction. The council also heard that the developer and Sandy Springs United Methodist Church have agreed between themselves — not through a city-funded contract — for the developer or its contractor (New South) to build a sidewalk on the north side of Mount Vernon adjoining the property.

Easement abandonment At the council meeting, staff asked the council to abandon a perpetual slope construction and maintenance easement the city obtained on Feb. 18, 2018, from Sandy Springs United Methodist Church for a narrow 0.52-acre slope along the western side of Sandy Springs Circle. Burnett said the slope is expected to be removed as part of the development, and ownership and maintenance responsibility will transfer to the developer and future property owner if the council approves the abandonment. The council voted to abandon the easement (agenda item 20 25-150) on a motion by Mueller.

What the actions do and do not do These approvals commit the city to acquire 111 parking spaces under the terms presented and to place the funds in escrow, and they free the property from a prior city slope easement so development can proceed in areas covered by that easement. The city’s ownership interest in the 111 spaces is time-limited: Burnett described the interest as lasting up to 50 years under the agreement and noted a buyback mechanism if the developer elects to repurchase the spaces. The council and PFA did not approve detailed long-term parking-management contracts or final vendor selections during the meeting.

Next steps and outstanding items Staff said closing on the deal is anticipated within days of the meeting and that the city will finalize escrow funding and select a construction-evaluation representative. The PFA and council must still finalize detailed management and accounting procedures for parking operations, vendor selection for parking management, and any additional budget requests if initial escrowed funds fall short.

Speakers quoted or referenced in this article are drawn from the meeting record and identified by full name and role at first reference.