Gainesville, Georgia

ECONOMIC DEVELOPMENT TOOLKIT

20

GEORGIA

Gainesville

By utilizing state and local tax credits, GAINESVILLE, GEORGIA’S strategic public investments have supercharged redevelopment and growth in its Downtown and Midtown areas. At the local level, TADs are a powerful economic incentive that reinvests property taxes from a new development back into the project to attract redevelopment. Local incentives have allowed developers to pursue projects that were economically unattainable and have encouraged quality development and business expansion.

Private development has followed public investment. The city has heavily invested in its public areas, greenspaces, buildings, and streetscapes. Gainesville is growing, but that growth could not have happened on its own. Gainesville’s engine of economic growth has

benefitted from a steady flow of strategic public investments madeby dedicated public servants.| THE ENCLAVE

Cost: $769,058 tad + $3.925 million private investment

• Four acres of 13 dilapidated homes with numerous code violations were replaced with 45 townhouse-style rentals.

• The city utilizes a private consultant to review TAD proposals.

• Without TAD assistance, the The Enclave developer onlyreceives a four percent return on investment (ROI). Withassistance, the developer receives a six percent ROI.

| TADs

THE ENCLAVE

Recurring Incentives

• PURPOSE: TADs allow tax increment dollars to be reinvested into a property in order to attract redevelopment thatencourages future growth throughout the area.

• CRITERIA: The city looks for financially stable private partners whose redevelopment plans align with the city’s goals.Developers prepare applications that include detailed costs of construction and why TAD funding for the project isnecessary for the completion of the project.

• FUNCTION: The base tax amount collected goes to the city and schools in the city and county. Only tax above theincrement is leveraged or reinvested.

•

SUCCESS: Beginning with smaller projects, ten projects have been awarded TAD financing since 2010 with the mostoccurring in the last two – three years, including multi-million dollar redevelopments.

ECONOMIC DEVELOPMENT TOOLKIT

21

| CHASTAIN JANITORIAL SUPPLY CO.

Cost: $192,000 (TAD) and $1.3 million PRIVATE INVESTMENT

• The original site was covered in concrete andrebar. With TAD financing, it was redevelopedwith quality construction.

The Enclave (above) and Chastain Janitorial Supply (right)are just two of several sites that have utilized TAD financing.

HISTORIC GAINESVILLE SQUARE

ECONOMIC DEVELOPMENT TOOLKIT

22

| OPPORTUNITY ZONEBUSINESS TAX INCENTIVE

• The opportunity zone is a powerful tax incentive for business expansion in an area focused on redevelopment.Any new or existing business that adds and maintains two or more new positions canqualify for a $3,500 tax credit per job for up to five years.

• FUNCTION: The Department of Community Affairs (DCA) Program is administered under Georgia’sRedevelopment Powers law. The resolution declared slum and blight in Downtown and Midtown.The city then hired a private consultant to draft a redevelopment plan for the designated area andto assist the city in navigating the administrative process.

IMPACTBusiness is booming

> The tax incentive attracted a substantial number of new businesses and encouraged existing businesses to expand.

Above: Rotary Clubs in Gainesville and Hall County teamed up with the city and county to update the park and honor public safety workers. A 16 ton water feature monument and an eternal flame are two main focus points of the tribute.

Public Investments & Redevelopment Projects

| ROOSEVELT SQUARECost: $747,000 (CITY), $50,000 (COUNTY), $29,000 (ROTARIANS)

• Roosevelt Square is a tribute to safety personnel and became an opportunity to redesign the park. It featuresupdated landscaping, a water feature, and an eternal flame monument.

• IMPACT: The tribute brings groups across Gainesville together and also functions as an ideal greenspace forprogramming. It has already hosted a summer concert series and other festivals/events.

| OLD COUNTY JAIL Cost: $7 MILLION (BOUGHT FROM COUNTY)

• DETAILS: In 2000, the Hall County jail property was identifiedas a transformational site for the Midtown area.The four-acre full city block was comprised of a 1970s eradetention facility and was demolished in 2017. The goalis that the site will become a mixed use development.

• FUNDING: The city utilized bonded debt. Demolitioncosts were $500,000 paid out of the general capitalimprovement budget.

Right: The former Hall County Jail site is a key section for Midtown Gainesville’s redevelopment.

ECONOMIC DEVELOPMENT TOOLKIT

23

| WALTON SUMMIT APARTMENTS

Cost: $14,000,000 in federal tax credits + $1,000,000 contributed from city in community development block grants and permit fees

• FUNDING: Wells Fargo purchased the tax credits and the influx of funds was utilized to improve the site. TheHousing Authority and the developer also provided funds.

• BACKGROUND: The Green Hunter Homes (aka Atlanta Street Homes) were Gainesville’s oldest public housingand contained 131 units that were built in the 1950s. Due to their age, it would have cost more money to rehabilitateand repair them than to rebuild. Housing and Urban Development authorized their demolition and disposition.

• IMPACT: Dilapidated housing was a deterrent of redevelopment by the private sector. The new development willreduce crime and improve aesthetics, boosting owner confidence to reinvest in the Midtown area.

ECONOMIC DEVELOPMENT TOOLKIT

24

WALTON SUMMIT APARTMENTS

Details

252 new apartment units

> The Green Hunter Homes were replaced with 252 high quality apartments in phased Low Income Tax Credit redevelopment project. Two of three phases consist of family apartments, while the third phase is referred to as Walton Summit’s “Legacy” Development which targets residents aged 55 and older.

> The units are a mix of public, affordable, and market rates. The first phase of 84 units are completely leased; construction of Phase Three is schedued to begin in early 2019.

Situated on a former railroad line, the Midtown Greenway links Downtown with Midtown and surrounding neighborhoods. A regional retention facility serves as a community ammenity.

| MIDTOWN GREENWAY

Cost: $4+ million + $100,00 RECREATIONAL TRAILS GRANt

To date, the City of Gainesville has invested over $4 million in trails, the park, the regional retention pond, streetscape, and stream restoration.

three sections of the trail. A private contractor was hiredto complete the fourth section and stream restoration,which utilized the Recreational Trails Grant, communityblock grants, Environmental Protection Division (EPD) 319Funding, and local utilities enterprise funds.

• FUNDING: The city utilized the Georgia Brownfield • DETAILS: In 2006, the city purchased land from Parker

Program; city public works crews (in-kind labor) built Street to Industrial Boulevard and a five acre maintenancearea from CSX Transportation. Under the GeorgiaBrownfields Program, CSX cleaned up environmentalcontamination on the property. City Public Works StreetsDivision crews began construction in 2010. In 2010, the cityreceived a Limitation of Liability letter which allowed it to beredeveloped into a park and restored an impaired stream.The trail opened in April 2012.

ECONOMIC DEVELOPMENT TOOLKIT

25

IMPACT

> The cIean up and replacement of the old railroadbed improved environmental health andincreased surrounding property values.

RETENTION FACILITY

> A beautiful park replaced a dilapidated rail yardand abandoned rail line.

ECONOMIC DEVELOPMENT TOOLKIT

26

The Public Safety Complex opened in 2010 and spans across 13 acres.

| PUBLIC SAFETY COMPLEX

Cost: $30,000,000

• FUNDING: Primarily SPLOST, some general fund

• DETAILS: The complex provided a new and muchneededspace for police headquarters, a fire station,and the municipal court. It replaced several cityblocks of dilapidated housing.

• IMPACT: The new development increased workspaceand improved the functionality of Fire Station#1 and the department's headquarters, as well as theand police department. A reduction in crime has alsobeen seen in the area.

| STREETSCAPE AND CONNECTIVITY IMPROVEMENTS

“Greening the Moat”

• DETAILS: Landscaped medians replaced stripedasphalt gore areas.

• FUNDING: $48,000 from National Fish & WildlifeFoundation, a Wells Fargo Foundation Grant,and local general funds

Midtown Streetscape

• DETAILS: The city replaced old water linesand storm drains.

• FUNDING:

• Streetscape: $350,000 in CommunityDevelopment Block Grant funds

• New water line and storm drain: $460,000from the Department of Water Resources

• IMPACT: Updated streetscaping not onlycontributes to beautification, it improveswater lines and increases stormwater capacity.

Right: Streetscaping throughout the city has improved sidewalk connectivity between the Gainesville Square and Midtown.

"The moat"

> Downtown is separated from in-town neighborhoodsand the Midtown area by three roads,E.E. Butler Parkway, Jesse Jewell Parkway, andAcademy Street creating a moat-like effect.

PrivateInvestments

| PARKSIDE AT THE SQUARE

Cost: $112,000 midtown TAD FUNDING + EASEMENTS FROM THE CITY

• DETAILS: Parkside at the Square provides 32 high-endresidential condos ($400,000+ each) with ground floorretail space. Parking will be located in the adjacent cityparking deck that is being expanded by two levels. Thedevelopment is located on the “fourth side” of the squarenear Roosevelt Square and is within two miles of LakeLanier by walking trails.

• IMPACT: The mixed use space will become a destinationthat will improve downtown by adding a new demographicand more foot traffic.

| SOUTHERN STATION

• DETAILS: Located between the square and Jesse JewellParkway, Southern Station provides 150-200 1-2 bedroomapartments with a parking deck nested into the developmentand potential for a grocery store.

• IMPACT: The development provides attractive apartments

for students, working professionals, or emptynesters while bolstering business on the Square.

Construction is currently underway at the parking deck downtown to prepare for the addition of Parkside at the square.

ECONOMIC DEVELOPMENT TOOLKIT

27

Southern Station will be located on Jesse Jewell Parkway.