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