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+ City of Powder Springs Atlanta Regional Commission Bleakly Advisory Group Southeastern Engineering Morris & Fellows
Springs in Motion is the 10-Year Update to the Powder Springs LCI (Livable Center Initiative) program administered by the Atlanta Regional Commission (ARC), which; Links land use, transportation, and market analysis in town centers, activity centers and corridors Provides planning grants Provides transportation
Smaller Focus than Previous LCI Study (2001) Bound by Richard D. Sailors and C.H. James (North and South) Downtown Powder Springs and Lewis Road Corridor
MARKET CONDITIONS Racial Composition Compared to the Atlanta Region Powder Springs Population: Has a higher percentage of families with children Has a higher share of seniors and boomers fewer millennials Skews older median age 1.8 years older than the region Is middle class with a smaller % share of both poor and high-income households The City has few housing options other than SF homes for 1 & 2 person households, seniors, empty nesters or millenials
MARKET CONDITIONS Percent Homeowners Median Single Family Home Value
MARKET CONDITIONS DEMAND FORECASTS Study Area Housing Demand: 2015-2025 For Sale Housing: 290 units total 30/Year mostly SF detached in early years, transitioning to TH & condo over time Rental Housing: 510 Units total with demand increasing sharply after 2025 EXISTING DOWNTOWN BUILDING INVENTORY Non-Residential Development Potential: 2015-2040 TOPJOBSECTORS:RETAIL,HEALTHCARE+ ACCOMODATIONS/ FOOD SERVICE
PRIORITY PROJECTS PUBLIC COSTS 1. NEWTOWNSQUAREDEVELOPMENT COST: $3.5 MILLION 2. SILVER COMET TO DOWNTOWN PAVED TRAIL CONNECTION COST: ALIGNMENT OPTION A, $455,000 ALIGNMENT OPTION B $400,000 A B 3. TREEPLANTING LEWIS ROAD CORRIDOR COST: $120,000
IMPLEMENTATION Given the City s past, Powder Springs has the financial capability and experience to implement major components of the draft LCI Plan, as evidence: The DDA has purchased real estate, which the City has leased back to repay debt service In 2005, the DDA issued $4.9 million in Revenue Bonds to purchase admin. offices for the City, renovate the Ford Center and acquire ROW for Lewis Road. The City received $11 million from the current SPLOST the Plan could be partially funded from a future SPLOST Recent/ ongoing Capital Projects projects include: Phase 1 of the Silver Comet Trail Linear Park, roughly $1.3 million (multiple funding sources including SPLOST) $1.0 million to acquire Bodiford House (purchase + renovate) $1.5 million in SPLOST for Powder Springs Park/WHC Park (joint County-Cit y) The City has been able to reduce the City s net long-term existing debt by $5.0 million since 2007 City is in a comfortable position to incur new debt, tentative on millage increase available debt margin of $32.2 million dollars
IMPLEMENTATION We proposed the DDA acquire and hold property for the New Town Plaza, a similar process was used to acquire City Hall This is the first and highest priority project THIS PROCESS WILL BEAS FOLLOWS: 1. Establish a project budget including land assembly costs and public improvements 2. Identify funding sources such as future SPLOST appropriations, accrued reserves, revenue bonds, and possible, disposition proceeds from the resale of excess property 3. Charge the DDA with the responsibility for assembling and/or holding property on the City s behalf Cost Summary: Downtown South of Marietta Street Estimated Property Acquisition Cost $2,540,000 Plus Demolition $260,000 Total Property Assembly Cost $2,800,000 Less Resale of Disposition Sites $2,840,000 Net Land Cost/(Surplus) $ (40,000) City/DDA share of Downtown Parking $1,700,000 Plaza/Amphitheater/City Parks $3,500,000 Estimated Total City/DDA Cost $5,160,000 Incremental Taxable Market Value Created $26,500,000 Will increase millage Additional in annual budget contributions
IMPLEMENTATION Budget for Property Assembly Resources can be raised from a combination of dedicated reserves, future SPLOST funds or a Revenue Bond issue Other communities have used a portion of unrestricted reserves to purchase/ temporarily hold real estate assets, in place of or in addition to issuing debt City maintains 6 mo. operating reserve - unassigned general fund balance of $3.8 million. The City can invest a portion of accrued reserves for temporarily property acquisitions to be returned upon resale or replacement from other sources, OR If debt is issued, City would pay costs to hold real estate until permanent funding is arranged- bonds could be issued with capitalized interest to allow 1-2, possibly 3 years (slow market conditions) to be financed through bond proceeds rather than general fund. Marietta and Smyrna used similar process Lewis Road Build Out Summary Units/SF Value/Unit Total Value Total Residential Building SF [1] 460,800 $125.00 $57,600,000 Industrial 220,000 $45.00 $9,900,000 Commercial 40,000 $80.00 $3,200,000 TOTALS: 720,800 $98.09 $70,700,000 NOTE: [1] Residential build-out assumes 192 added units averaging 2,400 SF ea. With an average price of $300,000.
Incremental Taxable Market Value Created $19,300,000 IMPLEMENTATION Once property is assembled the City would formulate a disposition strategy for any excess parcels, either: Managed by Brokerage Agency Or sold using an RFP Process Duluth recently went through both these processes Sale of property should be timed to maximize real estate value created by the City s investment in the New Town Plaza Norcross, Suwanee, Lawrenceville, Sugar Hill, Kennesaw etc. have used similar methods A TAD formed for downtown could be used to further reduce land assembly, demo and parking structures - $4.75 M in net TAD proceeds possible DDA could also consider offering leasehold interest bond financing to a developer of the proposed apartments If the City does not assemble land, it could present the development opportunity to a list of pre-qualified developers and commercial brokers Cost Summary: Downtown North of Marietta Street Estimated Property Acquisition Cost $2,360,000 Plus Demolition $290,000 Total Property Assembly Cost $2,650,000 Less Resale of Disposition Sites -$2,060,000 Net Land Cost/(Surplus) $590,000 City/DDA share of Downtown Parking $120,000 Plaza/Amphitheater/City Parks $750,000 Estimated Total City/DDA Cost $1,460,000
FUNDING ALTERNATIVES LCI TRANSPORTATION FUNDS: Available through the ARC and a competitive application process; amounts vary by project cost OUTDOOR HAPPINESS GRANT PROGRAM: Funds outdoor recreation construction costs; amounts vary by project cost GEORGIA HERITAGEGRANTS: Grants to assist rehabs of Georgia Register-listed historic properties/ related activities; amounts up to $50,000, 40% match funds LAND AND WATER CONSERVATION FUND (LWCF): Grants for acquisition of real property and development of facilities for general-purpose recreation; amounts up to $35,000, 50% local match funds RECREATIONAL TRAILS PROGRAM (RTP): Grants for recreational trails; amounts up to $100,000; 20% local match TAX ALLOCATION DISTRICT (TAD): Could leverage $4.75 M with County & School consent
CONCLUSIONS If successfully implemented t he LCI Plan could result in total investment of $116.5 million in Powder Springs Adds a net growth of $112.8 million over the existing value of properties where development is proposed Results in a net increase of $45.1 million in taxable real estate digest City tax base from real estate, personal property digest and business licenses should increase City revenue by more than $500,000/ year at build out Total public sector costs (net) estimated at well below $10.0 M City will need to risk funds initially to assemble property for disposition and eventual redevelopment DOWNTOWN NORTH DOWNTOWN LEWISROAD The Plan achieves the City s vision for a vibrant, mixed-use downtown that has been a City objective more than a decade.