ATLANTA — A controversial mixed-use development in northeast Atlanta is moving forward, and now some neighbors are concerned they could end up helping pay for it.
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The Invest Atlanta board voted Thursday to approve a bond resolution that would provide the developers of the Amsterdam Walk project with nearly $15 million in tax breaks.
The vote was 6-2.
The project, planned off Monroe Drive, calls for the existing development to be demolished and replaced with a mixed-use complex featuring apartments and retail space.
“Overall, the project is just too big for the area,” said Jessie O’Sullivan, a Morningside resident.
Despite pushback from nearby residents, the project is moving forward.
Charlie Kaften said the developers have already received $19 million in tax abatement bonds, along with a $2 million grant from the Beltline Tax Allocation District.
PREVIOUS COVERAGE:
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Portman Holdings, the developer of the new Amsterdam Walk project, asked Invest Atlanta for additional financial assistance Thursday.
The company said in documents submitted to Invest Atlanta that it expects to lose more than $225 million because of the affordable housing component of the project.
“They’re claiming that they need this money because they’re going to lose so much money because of the affordable housing they’re providing,” Kaften said. “They basically want to be paid back.”
The first phase of the project is expected to include 539 apartment units, with 39 designated as affordable housing. The development will also include retail space.
The affordable units are expected to be priced at 80% of the area median income for 198 years.
According to information presented to the board, that would put the rent for a one-bedroom apartment at about $1,768, compared with a market-rate rent of approximately $2,655.
“It’s really permanent affordability,” Invest Atlanta board member, Fulton County Commissioner Dana Barrett said.
Channel 2’s Eryn Rogers asked Portman Holdings about their plans, but they declined to comment on the vote or the project.
Neighbors have also raised concerns about the project’s potential impact on traffic along Monroe Drive, which they say is already heavily congested.
“Adding insult to injury, first the majority, 77%, voted against this project. Now we’re being asked to pay for it,” Kaften said.
Invest Atlanta board member Dr. Ken Zeff, the Vice-Chair of the Atlanta Public Schools Board, voted against the tax break. Zeff said he supports affordable housing but opposed the measure because of its impact on Atlanta Public Schools funding.
“Where I question is Atlanta Public Schools role in paying for affordable housing, taking dollars out of the classroom, in this case $7 million over the next 10 years to subsidize housing,” Zeff said.
Barrett voted in favor of the tax break.
Barrett said the funding will help make the project more equitable by allowing it to include affordable housing in an area where affordable units can be difficult to build.
“It’s not a heavy burden on taxpayers specifically, but what it really does is allow us to make this project better by including affordable housing which is very, very hard to do in Midtown and these wealthier areas,” Barrett said.
Construction is still expected to begin next year, with the project scheduled to be completed by 2029.
The developers also will not be allowed to buy out of the affordable housing requirement while keeping the tax break.
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