Columbus, Georgia

Georgia's First Consolidated Government

Post Office Box 1340
Columbus, Georgia, 31902-1340
(706) 653-4013
fax (706) 653-4016

Council Members

Agenda Item # 4







The Columbus Consolidated Government

Planning Department

Post Office Box 1340 Columbus, Georgia 31902-1340

Telephone (706) 653-4116

Fax (706) 653-4120

Website: www.columbusga.org/planning





Honorable Mayor and Councilors

City Manager

City Attorney

Clerk of Council



Subject: Midland Commons Tax Allocation District Redevelopment Plan (TADRP)



Applicant: Flournoy & Calhoun Realtors



Request to establish a TADRP in southwest Columbus, also known as the Tax

Allocation District #7: Midland Commons.



This redevelopment plan (the Plan) presents the rationale, boundaries, fiscal

data and proposed projects which could result from the formation of the

Columbus, Georgia Consolidated Government, Tax Allocation District #7: Midland

Commons. This redevelopment plan was prepared in conformance with the

provisions of Georgia Redevelopment Powers Law (O.C.G.A. Title 36 Chapter 44)

which governs the creation of the Tax Allocation Districts (TADs) in the state.

The plan was prepared by Bleakly Advisory Group, Inc. (BAG) on behalf of the

prospective developer of the project, Flournoy & Calhoun Realtors.

(1) Are boundaries fully established?

Yes. The proposed boundaries for the Redevelopment Area and TAD #7 includes

more than five properties covering roughly 289 acres within individual tax

parcels.

This distribution shows that more than 270 acres within the proposed area are

in two main parcels, the first is the future site of Midland Commons owned by

Swift Textiles LLC, the second is a tax-exempt parcel owned by the Columbus

Consolidated Government that is the main area of Flat Rock Park. The

redevelopment area also includes the right of way along J.R. Allen Parkway from

the northern edge of the intersection with Flat Rock Road on the north to the

southernmost portion of the intersection with Psalmond Road to the south.

(2) Does the applicant provide proof that the proposed TADRP require

redevelopment assistance?

According to the proposed redevelopment area plan, this area meets the

statutory definition of a Redevelopment Area under the specific provisions of

the Redevelopment Powers Law. The redevelopment area meets the intent of the

statute. These relevant sections are shown as follows:



? A (v) ? The existence of conditions?substantially impair the sound growth of

the community.

? B (iii) ? The predominance of structures or buildings of relatively low

value, or significantly slower growth in the tax digest than is occurring in

the political subdivision as a whole.

? B (lv) ? Declining or stagnant rents or sales prices compared to the

political subdivision as a whole.

? B (vi) ? Deteriorating or inadequate utility, transportation, or transit

infrastructure.



Justification for the relevant sections can be found on pages 17 through 19 in

the Plan. The points in bold are focus points.



(3) Does the applicant describe any redevelopment projects, cost estimates, and

financing methods?



Yes. The plan for Midland Commons is illustrated in a site plan, which appears

later in this section. The property can support the development of nearly

335,000 square feet of retail uses. In addition, a total of 250 senior housing

units are planned for the mixed-use development. At build-out an estimated 735

permanent employees will be working at Midland Commons in the commercial and

senior housing components of the development.









The table above summarizes the proposed development program for Midland

Commons, showing the distribution of proposed retail and residential

development by land use. The Plan anticipates that the project would require

approximately four to five years to reach build out and the proposed density

and distribution of land uses are subject to change as market conditions evolve.



Public access to this Midland Commons site will be made chiefly from several

points of intersection with J.R. Allen Parkway and East Flat Rock Road. This

will allow for access into the all portions of the Midland Commons site.



The report does not attempt to forecast and future development in the area

around the TAD, beyond Midland Commons. However, if the commercial mixed-use

development is successful, additional development may be attracted to areas

around TAD #7 which, since they are not included in the TAD, could immediately

generate additional property tax and sales tax revenues to CCG and MCSD. This

phenomenon, known as the ?halo effect?, has occurred in many other TAD

districts around the State of Georgia.



The Plan anticipates that the primary method of financing development of

Midland Commons will be through private equity and debt. TAD proceeds would be

used to supplement private financing and reduce overall development costs in

order to make this project financially feasible. TAD proceeds would be applied

to address off-site development costs and/or reduce the cost of constructing

access roads and internal infrastructure. In addition, a portion of TAD funds

will be used to make transportation improvements to J.R. Allen Parkway and to

enhance Flat Rock Park. Forecasts of potential TAD proceeds and proposed uses

of those proceeds are addressed in detail, later in this report.



(4) Are contracts, agreements, or other instruments which are proposed to be

entered into by the CCG (for the purpose of implementing the plan) outlined?



Yes. Pursuant to O.C.G.A. ?34-44-3(a), the Columbus City Council will act as

the redevelopment agent and will exercise redevelopment powers as needed to

implement this plan. In doing so, the Council, either directly or through its

designee, may conduct or delegate the activities and enter into the contracts

as shown on page 22 of the TADRP.

(5) Does the applicant describe the types of relocation payments needed (if

necessary)?

Yes. The site of the proposed Midland Commons is vacant and partially

undeveloped and therefore, no existing residences or businesses will need to be

relocated. However, if at any time in the life of TAD #7 relocation of any

residences or businesses is required, relocation expenses may be provided for

under all applicable federal, state and local guidelines.

(6) Does the TADRP conform to the 2028 Comprehensive Plan and all UDO

requirements?

The TADRP is inconsistent with the 2028 Comprehensive Plan. The Swift Boling

Mill was still in operation at the time the Comp Plan was created. All UDO

requirements will be met for the site. Zoning may need to be addressed as

projects come along.

The Swift property is zoned LMI (Light Manufacturing/Industrial). Flat Rock

Park and right-of-way do not carry zoning designations. Rezoning for mixed-use

or retail will require rezoning for the Swift property.

(7) During the implementation of the TADRP, are estimates of redevelopment

costs (to be incurred) submitted?

Yes. Priorities for the use of TAD proceeds would evolve as project planning

proceeds, more detailed site development budgets are prepared and actual costs

become better known. The intent is to employ TAD proceeds as available and

necessary to make site development financially feasible and to attract the

types of end-users that would positively impact the redevelopment area and the

regional economy. Uses of TAD proceeds may include (a) supporting site

development (including access roads, site preparation, demolition of the

remaining slab, utility improvements, etc. (b) access enhancements and

signalization at the main entrances to the property, and (c) funding certain

improvements to Flat Rock Park. Four specific uses for TAD proceeds are

described below as proposed by the applicant:



? Traffic enhancements and intersection improvements*: Given the substantial

volume of traffic on J.R. Allen Parkway, access to Midland Commons will need to

be improved, through creation of multiple entrances, a deceleration lane, and

enhanced signalization. While some of these costs can be absorbed by the

project, this site has unique access challenges and improvements which need to

be made to assure its impact on J.R. Allen Parkway is minimized.



? Internal Circulation*: With the active uses planned on site and over 355,000

SF of retail space the creation of an internal street network to handle traffic

that allows ready access to all parts of the mixed use development is

essential.



*A traffic study is being conducted.



? Site Demolition and Development Costs: There is a massive slab of the former

textile plant remains on site and has to be removed to allow for redevelopment.

This will be a major extraordinary cost of redevelopment and has likely been a

major cost which has made redevelopment infeasible in the past. In addition,

given its past manufacturing use, the site lacks sufficient water, sanitary

sewer, and specialty infrastructure that the planned uses may require.



? Park Enhancements: The City has requested that Flat Rock Park be included in

the boundaries of TAD #7 and would like to finance some modest improvements to

the park from potential TAD proceeds. We have included these costs in the TAD

estimate.

The estimated $7.5 million in TAD Bond proceeds could be used in numerous

combinations as specific needs arise. The above table contains a representative

distribution of fund uses among the priorities described above. In reality, TAD

proceeds will be allocated to specific purposes as development opportunities

arise and specific agreements are negotiated between the Master Developer and

the Columbus Consolidated Government (CCG) and with prospective end users.



The calculations made above provide one reasonable forecast of achievable

future redevelopment within the proposed TAD #7, resulting in gains in the

area?s real estate tax digest, corresponding tax allocation increments,

supportable TAD financing proceeds and potential uses for those proceeds to

reduce redevelopment costs. As noted above, numerous combinations of equally

reasonable inputs and assumptions could be applied to produce marginally

different results. This report sets an achievable expectation for the TAD?s

future financial performance, which is intended to help the Consolidated

Government make decisions moving forward.



(8) Has the applicant presented the last known assessed valuation of the

redevelopment area and the estimated assessed valuation after redevelopment?



Yes. The redevelopment area for Columbus, Georgia Consolidated Government Tax

Allocation District #7? Midland Commons as defined in this Redevelopment Plan

includes five tax parcels and 289.2 acres within those parcels. The proposed

TAD #7 has an estimated 2017 fair market value of $8,502,871 and a taxable

assessed (40% digest) value of $3,401,148, according to Muscogee County tax

assessment records.



Pursuant to the Redevelopment Powers Law, upon adoption of the Redevelopment

Plan and the creation of the tax allocation district, the City will request

that the Commissioner of Revenue of the State of Georgia certify the tax base

for December 31, 2017, the base year for the proposed tax allocation district.



The tax base will increase in the future through the private investment

stimulated by the implementation of the redevelopment plan and the reinvestment

of TAD increments back into the project. Upon build out of Midland Commons,

this tax allocation district is projected to have a market value of

approximately $57.5 million and a taxable value of $22.9 million at the end of

an estimated 5-year absorption period. This represents an incremental digest

growth of $19.6 million over existing conditions or more than a fivefold

increase in taxable value.



(9) Has the applicant identified and mitigated historic properties within the

redevelopment area?



Yes. The proposed redevelopment area for TAD #7 does not contain any ?historic?

properties listed locally or on the National Register of Historic Places. In

the highly unlikely event that any historic properties are identified within

the TAD, they will not be substantially altered in any way inconsistent with

technical standards for rehabilitation; or demolished unless feasibility for

reuse has been evaluated based on technical standards for the review of

historic preservation projects, which technical standards for rehabilitation

and review shall be those used by the state historic preservation officer.



(10) Has the applicant specified the proposed effective date for the creation

of the tax allocation district as well as the proposed termination date?

Tax Allocation District #7 will be created effective December 31, 2017. The

Redevelopment Powers Law provides that the TAD will be in existence until all

redevelopment costs, including debt service, are paid in full. For analysis

purposes, this report assumes that the TAD will remain in existence for a

maximum of 30 years.

(11) Does the application contain a specific TADRP boundary map as well as

establish existing conditions and uses of real property?

Yes. The proposed TAD #7 boundaries are shown on the following map. Existing

land use within the proposed TAD #7 is predominantly vacant land, of the former

Swift Denim Plant site, and Flat Rock Park, the remaining land is largely

highway right of way and the Fall Line Trace. These uses are shown on the

Existing Land Use Map presented earlier in this report. The boundaries of the

TAD include the totality of the five parcels listed and the right of way along

J.R. Allen Parkway, and the interchange with Manchester Expressway as shown in

green on the map below.



The TAD includes 5 tax parcels located within the pink shaded area plus

associated public rights of way. For any section roadway that is used as a

boundary in the TAD map, including but not limited to J.R. Allen Parkway, Flat

Rock Road, Psalmond Road and the intersection with Manchester Expressway, the

entire section of right of way is intended to be included inside the TAD

boundary in order to maintain flexibility to use TAD proceeds for public

improvements to those rights of way, if desired by the redevelopment agency.



Implementation of this redevelopment plan is not entirely consistent with the

City?s existing zoning, Future Land Use Map and previously identified

strategies for the area as articulated in the Consolidated Government?s

Comprehensive Plan and adjustments will be required for the proposed land uses.



(12) Does the applicant specify ad valorem property taxes for computing tax

allocation increments?



Yes. As provided in the Redevelopment Powers Law, the taxes estimated to be

included in the tax increment base for the tax allocation district are based on

the following authorized millage rates: Creation of the tax allocation district will not affect any existing or planned

business improvement districts within the boundaries of the redevelopment area.

Proposed MCSD participation is included in the report but has not been approved

by the Muscogee County School Board.

(13) Does the applicant specify the amount of the proposed tax allocation bond

issue/issues as well as establish the term of said bonds?

Yes. Upon adoption of this Redevelopment Plan, the Columbus Consolidated

Government may issue tax allocation bonds or other financing instruments, in

one or more issues.

The Columbus Consolidated Government could issue tax allocation bonds or

alternative forms of financing for a term no longer than 25 years.

(14) Does the applicant estimate positive tax allocation increments for the

period covered by the term of the proposed tax allocation bonds?

Yes. The Columbus Consolidated Government may issue tax allocation bonds or

alternative forms of financing for a term no longer than 30 years. Given

current market conditions, the calculations made in this report assume a

maximum of two financing issues, each using a 25 year term.

(15) Does the applicant specify the properties proposed to be pledged for

payment or security for payment of tax allocation bonds?

Yes. Bonds or pay-as-you-go agreements will be secured by the positive tax

allocation increment from eligible ad valorem taxes levied for these purposes.

Based on current millage rates and commercial property values in Columbus,

positive tax allocation increments from development of real estate are

estimated at $794,000 when build-out is completed within five years. The actual

amount of collected tax increments will depend upon the pace at which the

Redevelopment Plan is implemented and the impact of the redevelopment

activities and other economic factors on the tax base in the TAD as a whole.

The Consolidated Government also reserves the flexibility to pledge ad valorem

tax increments taxes on business personal property to the TAD.

(16) School system impact analysis:

(A) Estimated number of net new public school students:

The development plan for Midland Commons calls for the creation of 250 senior

housing units. Since these units will be age-restricted to persons who are

either 55 and older or 62 and older, there will be no school aged children

living at Midland Commons. At this time, there are no specific proposals to

introduce other residential development within the proposed TAD. Thus, there

will be no school aged children living at Midland Commons that would impact the

MCSD.

(B) Location of existing/planned school facilities within the TADRP:

There are no Muscogee County Schools facilities located within TAD #7. The

closest schools to TAD #7 are Midland Middle School, Midland Academy, Blackmon

Road Middle School, Shaw High School, and Eagle Ridge Academy. None of these

schools would be directly impacted by development of Midland Commons in terms

of enrollment. The location of more employers and potential job opportunities

for area residents should have a positive impact on area schools.

(C) Estimate of SPLOST to be generated:

The hypothetical development that could occur in the Midland Commons TAD could

have a positive impact on the amount of ESPLOST revenue the school district

will receive. Shown below is an estimate of the additional retail sales that

will occur in the Midland Commons from the hypothetical development in the TAD.

Based on both the net addition of new residential units and the development of

additional retail space and new hotel rooms, the MCSD should receive an

additional $479,000 in ESPLOST revenue from the development occurring in the

TAD annually.

(17) Has CCG staff validated the digest calculations as well as the percentage

of the total digest?

The Tax Assessor and the Finance Director are reviewing the digest calculations.

Council District(s): District 5 (Baker) and District 7 (Allen)

Additional Information:

The applicants are proposing to establish a redevelopment area, not a

particular TAD project. All TAD-financed projects that are proposed within the

redevelopment area shall make application and be approved by City Council.



The Swift property is zoned LMI (Light Manufacturing/Industrial). Flat Rock

Park and right-of-way do not carry zoning designations. Rezoning for mixed-use

or retail will require rezoning for the Swift property.



Approval of this redevelopment area will create TAD #7, which is proposed to

make up 0.083% of the digest. All of the TADs combined (existing and proposed)

would make up 3.943% of the current City digest.



Staff Recommendation:



The Planning Department recommends approval of the proposed TADRP: Midland

Commons ? TAD #7.





Respectfully,



Rick Jones, AICP

Director, Planning Department











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