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Public Facilities Authority approves MOU to fund 111 city parking spaces in Hillcrest mixed‑use project
Summary
The Sandy Springs Public Facilities Authority approved a nonbinding memorandum of understanding with Trammell Crow’s buyer to fund 111 parking spaces in the Hillcrest mixed‑use development, using a 10‑year tax abatement to recover costs and $900,000 for nearby infrastructure improvements.
The Public Facilities Authority on Tuesday approved a resolution to execute a memorandum of understanding that would let the city buy 111 parking spaces in the Hillcrest mixed‑use development being built on the former Hitson Center site.
The MOU—presented by Chris Burnett, Director of Economic Development—would have the city pay for 111 parking spaces inside a developer‑built garage and recover those costs through a 10‑year tax abatement tied to the project. The PFA voted to approve the nonbinding MOU and to authorize staff to continue negotiating documents necessary to finalize the agreement.
Burnett told the board the property is an 8.1‑acre tract on the southwest corner of Sandy Springs Circle and Mount Vernon currently owned by Sandy Springs Methodist Church. The development, led by a Trammell Crow subsidiary in partnership with Third & Urban, would build 362 rental apartments, 30 rental townhomes and about 18,000 square feet of retail. “What we're talking about tonight relates only to the 111 new parking spaces in the new garage,” Burnett said.
Under terms presented, the city's portion of hard construction cost for the 111 spaces is approximately $3,312,000, or about $29,600 per space. The development authority's package includes a developer fee of 3.5% of the city's hard cost (roughly $116,000), $900,000 for local infrastructure and streetscape improvements near City Springs, and estimated legal and soft costs of roughly $220,000. Burnett said total taxes abated are estimated at about $4,000,009 over a 10‑year abatement term (undiscounted taxes over 10 years were presented as roughly $4,800,000; net present value of the abatement about $3,600,000).
Burnett told the board the MOU would give the city a parking easement for 111 dedicated spaces; the first two hours would be free for patrons parking in the city spaces, mirroring City Springs deck rules. The city would pay roughly 20% of ongoing garage maintenance costs because the garage will have about 80% of spaces owned by the developer and 20% by the city. The MOU would also include a provision allowing the owner to repurchase the city’s parking interest after 50 years for a minimum of 200% of the city’s hard construction cost — about $6,624,000 as presented — adjusted by revenues received over time.
Melissa Mueller moved approval of agenda item PFA‑2025‑07; Tibby DeGiulio seconded. After discussion the PFA voted in favor; the item was approved.
PFA members and several councilmembers who spoke during the discussion said the parking component is intended to replace about 105 existing surface overflow spaces the city currently uses and to support events in City Springs and nearby retail. Board members also pressed for pedestrian safety and crosswalk improvements connecting the new garage to City Springs and Heritage on the Green; the presentation said the $900,000 would be targeted for streetscape and safety work to that end.
Next steps: staff will return with final MOU language and related documents for execution once the PFA's approval is memorialized and negotiations finish.
