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GMA outlines Downtown Development Authority powers and limits as Hiram weighs forming a DDA
Summary
A Georgia Municipal Association representative told Hiram council a downtown development authority (DDA) can acquire, lease and finance downtown projects, issue revenue bonds and enter long-term intergovernmental agreements, but must comply with state statute on board composition, training, audits and open-records obligations; council was advised to adopt a council resolution, map a boundary and use attorney review.
Cindy Itson of the Georgia Municipal Association gave an informational presentation to Hiram council on the purpose, powers and requirements of a downtown development authority (DDA) under state law.
Itson said a DDA is a tool cities can use to purchase, lease, finance and sell projects within a defined downtown boundary; DDAs may issue revenue bonds (not general-obligation bonds), receive dedicated tax revenues or intergovernmental-agreement-backed loans, and contract for terms up to 50 years when structured through a DDA rather than directly by the city. She noted the state statute (1981) sets membership rules: seven voting members with specific residency/economic-interest qualifications, staggered four-year terms and eight hours of required DDA training for members.
Itson warned that while DDAs can be more flexible for long-term contracts and can act as conduit lenders for private development, they must meet fiduciary and reporting requirements (annual audit and DCA registration), observe open meetings and records provisions, and consider liability coverage for board members. She recommended city attorney review of proposed bylaws and a council resolution declaring the need for a DDA, accompanied by a boundary map and list of proposed board members.
Using a Woodstock depot project as an example, Itson illustrated how a DDA can lease or acquire property and structure long-term leases to enable private investment where a city’s four-year contracting limit might constrain developers’ financing needs. She said GMA can provide templates (resolutions, bylaws, member forms) and training resources; she also offered GMA assistance and suggested the city consider appointing a council member or mayor to serve in an initial oversight role.
Council members asked process questions about candidate selection, training expense (noted as the city’s responsibility) and potential conflicts of interest; Itson reiterated methods to screen applicants and advised careful selection and legal review before formal establishment.
