The city of Atlanta’s economic development agency approved incentives Thursday to encourage developers to build “workforce housing” at two planned apartment communities.
The property tax breaks are part of a plan by Invest Atlanta and Mayor Kasim Reed over the past few years to encourage developers of apartment towers to set aside 10 percent of units that are affordable to residents who make 80 percent of the region’s median income.
One project — Post Centennial Park – will be the first luxury apartment development of its kind built near Centennial Olympic Park in years. Developer Post Properties is planning a 438-unit development, with 44 apartments set aside at lower rents for 10 years.
The $4.6 million estimated property tax break is on top of a nearly $4.4 million grant the project was awarded towards development last year. It will rise on underused parking lots that generate about $92,000 per year in property taxes. That figure would grow to an estimated $13.85 million over 10 years after deducting the projected tax break, Invest Atlanta documents state.
Dawn Luke, managing director of housing finance at Invest Atlanta, said the incentives were necessary to convince Post to take the risk of building downtown in a market with little new residential development. In turn, she said, Post lends a brand name and “validation of where we are all headed.”
Separately, the Invest Atlanta’s board also approved nearly $2 million in property tax breaks for a 224-unit apartment development and retail space at the Edgewood-Candler Park MARTA station. Twenty-three apartments will be made available at reduced rents for 10 years.
The property, owned by MARTA, is currently not taxed, but following development the property is expected to generate nearly $6 million in new property tax revenue over a decade after deducting anticipated tax savings, the documents said.
The development is part of MARTA’s transit-oriented development plan to encourage density around its stations to boost ridership and generate revenue.