Development Authority: 850 Main renovation nears occupancy; staff seeks city accounting for long-running PILOT payments
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Summary
Staff said 850 Main's renovations are nearly complete (as-is appraisal about $1.6M; stabilized value ~$2.1M), multiple tenants have expressed interest in the cafe and ballroom space, a dentist tenant at 842 Main is about $20,000 behind in rent, and the authority is moving its finances back into the city's treasury while seeking a reconciliation of longstanding Kroger PILOT distributions.
Forest Park's Development Authority received an extended economic-development briefing on Feb. 25 that covered multiple downtown properties, leasing prospects, tenant arrears and the authority's finances.
850 Main: staff said renovations are largely complete and presented an appraisal showing an as‑is market value of about $1.6 million, a prospective market value around $2.0 million and an estimated stabilized value of roughly $2.1 million. The building's first-floor cafe area has been remodeled as a prep/warming space and will require a grease trap and some minor health‑department fixes; the elevator must be fully operational before full occupancy. The authority reported three parties interested in the cafe space (two local coffee purveyors and a sandwich/pastry concept), and staff said a national coffee franchise that is new to Georgia is also exploring sites in Forest Park.
Ballroom and rental management: staff recommended Recreation & Leisure manage rentals under an intergovernmental agreement (IGA) and flagged required common-area services (Wi‑Fi, janitorial, trash, exterior signage and security). Staff also said it is preparing a rental application and a draft agreement for attorney review.
Tenant arrears at 842 Main: staff reported a long-term dentist tenant signed a March 2025 lease at $18.50 a month and is about $20,000 behind on rent. The authority's attorney has contacted the tenant's attorney; staff gave the tenant a short cure period and indicated eviction is possible if arrears are not brought current.
Finances and Kroger PILOT: staff said authority funds have been managed outside the city's finance department; staff are working with the city finance team to bring authority finances back into the city treasury (the finance department would serve as treasurer) and aim to complete the transition by April 1. The board discussed a longstanding payment-in-lieu (PILOT) arrangement connected to the Fort Gill/URA projects and Kroger; staff and counsel said payments historically flowed through the authority to the city to service bonds, but past recordkeeping and reconciliations are incomplete. Board members asked staff to obtain bond documents and ask the city's financial adviser to present a transaction-by-transaction accounting so the board can determine which entities received funds and whether any redistribution is appropriate.
Other items: staff gave updates on two properties under contract (794 Main / GUCA and 76770 Main / Prestwick), and the board authorized the chairman to sign an amendment extending the Prestwick contract timeline so the developer can reapply for low-income housing tax credits; that motion passed by voice vote.
What happens next: staff will finalize outstanding punch-list items at 850 Main, pursue a health-department walkthrough, share the finalized rental agreement and IGA terms with the attorney, pursue resolution of the dentist arrears (including eviction if unresolved), and coordinate with the city's financial adviser to present a full accounting of PILOT and bond-related transactions at a future meeting.