Alpharetta authority retains Troutman Pepper Lock as special counsel; votes to terminate Garin project bond deal

The Development Authority of Alpharetta on Thursday unanimously approved two actions: retaining Troutman Pepper Lock as special counsel and authorizing documents to terminate the Garin LLC taxable revenue bonds and related lease transaction.

Charlie, speaking for authority staff, told the board the city already engages Troutman Pepper Lock in matters where the city attorney has a conflict or where specialized expertise is needed and recommended the authority have the same preauthorized engagement so counsel can be retained quickly if circumstances overlap. Betsy Hicks, an associate at Troutman Pepper Lock, was introduced to the board as the firm’s representative. A motion to retain the firm and authorize the chair to execute required documents passed on an electronic vote, 5–0.

The board then considered a staff-drafted resolution to terminate the Garin project transaction. Charlie summarized the project history: in December 2022 the authority entered a lease and taxable bond transaction with a subsidiary of Crescent Communities for a proposed 160,000-square-foot class A office project that would have renovated the former Bailey Johnson School and added a new mass-timber office building. Charlie emphasized that the development authority’s tax-incentive structure means incentives only take effect once the project is complete and a certificate of occupancy is issued; because the Garin project never reached that stage, no tax benefits had been realized.

Bond counsel Molly explained the packet included a draft resolution and an exhibit deed form to transfer property back to the developer and to authorize any actions necessary to effectuate termination. Board members asked why the developer could not move the project forward. Staff said conversations with the developer cited market conditions, higher-than-expected rehabilitation and construction costs, and the inability to secure an anchor tenant to make the project financially viable. Staff told the board the developer remained interested in a future project at the site but could not provide a timetable to advance the approved plan.

A board member asked whether the authority received any cancellation compensation; staff replied the authority received an up-front bond issuance fee equal to 1/8 of 1% of the total bond amount and that legal fees had been covered. The motion to approve the resolution terminating the Garin LLC taxable revenue bonds and associated lease transaction carried on an electronic vote, 5–0.

The authority’s actions were procedural approvals to enable efficient access to counsel and to clear the authority’s records and obligations in light of the developer’s decision not to proceed. Staff said Crescent Communities provided a termination letter included in the meeting packet and indicated the developer could return with a new proposal in the future if conditions change.