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DDA approves early cancellation of Peachtree bond; expects roughly $226,000 windfall
Summary
The Chamblee Downtown Development Authority unanimously adopted a resolution to cancel the bond and terminate related documents for the Peachtree Station (Whole Foods) project, producing a one-time payment to the DDA and returning the property to the tax rolls next year.
The Chamblee Downtown Development Authority voted unanimously on March 24 to adopt a resolution authorizing the early cancellation of a bond and termination of related bond documents for the Peachtree Station (also referred to as Peachtree Crossing / Petrie Station) project.
A committee member described how the original tax-incentive 'bucket' for the Whole Foods-era development—"of credits worth about $7,500,000"—has been exhausted earlier than expected, producing a one-time payment to the DDA. In the meeting the board discussed that payment as "the DDA will be seeing a windfall of 200 and it was $226,000," and noted that next year the property will return fully to the tax rolls, benefiting DeKalb County, the school district, the city and other taxing entities.
Board members said the incentive structure meant annual tax abatements were applied against a finite credit allocation; because the credits reached their allocated total this year (discussed in the meeting as about $7.5 million), the flip year has arrived sooner than originally anticipated. A committee member explained that the bucket was originally expected to be used over a longer period but that actual tax values began to accrue when the project reached occupancy.
The Chair moved the resolution, described in the meeting as authorizing "the cancellation of a bond and termination of related bond documents" for the Petrie Station Holding LLC project subject to the chairman's final approval in consultation with counsel; the motion was seconded and approved unanimously. The board discussed using incoming funds to reduce further draws on the city loan and possibly retire outstanding loan amounts, but members said they would run numbers and seek a legal opinion before final decisions.
The vote was recorded as unanimous; the motion text and execution were described by the Chair in open session. The board later entered and exited an executive session on a related real-estate matter and then adjourned.
