TAD Advisory Committee - Lexington Road

MINUTES LEXINGTON TAX ALLOCATION DISTRICT (TAD) ADVISORY COMMITTEE Thursday, April 29, 2021 – 5:30 pm Held remotely via WebEx Members Present: Dr. Cshanyse Allen Rhett Butler Brantley Colbert Dr. Mack Duncan Mae Walter Absent: Shane Dekle Staff: Blaine Williams Ilka McConnell A. Overview of Agenda: Ilka McConnell B. Approval of Minutes Motion: Mack Duncan Second: Cshanyse Allen Unanimously approved by the Committee Blaine Williams provided an overview of the roles and responsibilities of the TAD Advisory Committee members as defined in the Redevelopment Plan. The group is advisory in nature, and provides review and comments of TAD Funding Request Applications for proposed projects located within the TAD, to provide input to the Mayor & Commission. Committee can choose to share comments individually and staff will compile to share with M & C; alternately, the group can offer group comments to the M & C. Ilka McConnell shared answers to questions asked by the Committee members during their last meeting. Blaine Williams outlined next steps for how the TAD Committee's recommendation regarding this TAD Funding Request will be shared with the Mayor & Commission. 63270438v.2 C. Committee Discussion of Application for TAD Financing and Recommendation to Mayor & Commission: TAC Members Concerns whether this is the best project to invest the TAD funds in. Not beneficial enough to the area for the amount of funds requested. Retail portion will be in a future phase, so not creating many jobs. Using the funds in other ways in the corridor may be more beneficial to the area. Believe there are other opportunities that would benefit the corridor much more than this project for this amount of TAD funds requested. The student housing will be built anyway. The rents for this development do not sound more affordable than the market rate, and other nearby multi-family developments are more affordable than this would be. The only reason would be in favor of this would be if we absolutely had to have workforce housing, but this development would happen anyway. There are better things that can be done with the money to benefit the corridor. How soon after construction will the value of the new development begin to be included in the tax digest? Likely not see much increase until calendar year 2023. These are mostly studio and 1BR units. What percentage of our workforce have children? Looking at the square footage, we should be subsidizing 2 and 3 BR apartments that a small family could live in. The TAD is a redevelopment tool, and for the amount of TAD funds being requested, do not see how it will benefit the community as a whole because it is isolated. There is a better use of the TAD money. The 1BR and studios look like student housing. Does not feel right. With that amount of TAD funds, how will the corridor benefit? The developer won't close on the property until October 1st. What is the rush to make this decision now? Was initially in favor, but upon receiving the information re: proposed rent rates, that changed things. Reviewing the data and seeing that they are mostly 1BR and studios, it does not make sense. That amount of money could be used in other ways to better serve the corridor. Thinks the TAD money could be used in better ways. Worries that it will become student housing. When is enough student housing enough? Concerns that developer will build them, students will go to whatever is new, investors will sell the development, and then it will end up being something else. The $2.9M requested could be used towards something else, infrastructure for example. There are properties in the area that are still on septic tanks. Money could be better spend assisting in case peoples' septic tanks fail and they don't have enough land to remediate. How to incentivize other companies and retail to come to the area, better restaurants with healthy options? Have vacant buildings in the corridor that the TAD funds could be used to recruit new businesses and redevelop, create jobs, offer job training, things that will be long-lasting and long-standing to benefit people in the community. 63270438v.2 The affordable housing issue has 2 sides: helping people to earn higher wages through job training, and more affordable rent rates. Looking at entry level jobs that earn sustainable wages so people can afford rent. Would be helpful to understand Commissioner Mariah Parker's position on the use of TAD funds for this project, since it is located within her district. Important for the Commissioner to understand the group's input and hear their concerns about this. Format of comments: Consensus among members that the Committee has consensus and are on the same page, and they would like to submit a group comment/recommendation to the Mayor & Commission. Group Input for Comments: Want to communicate that they do not support using TAD dollars for additional workforce housing for this particular project. There are other projects that will be more beneficial to the corridor and to Athens-Clarke County as a whole. The studio, 1 and 2 BR units are not suited to workforce housing. Development is geared to UGA students and not targeted to workforce/professional people. project will not provide opportunities like infrastructure, jobs, job training, opportunities to be involved for the people living in the corridor. Looking for a project that has long-term benefit to the corridor and community. No date/timeframe for when to expect the retail/commercial development phase of the project. The proposed workforce rents for the project are still high, even with the TAD subsidy. D. Next Steps: Blaine Williams E. Date for Next Meeting: Thurs, May 6th at 5:30 pm F. Adjourn Motion: Mae Walter Second Dr. Cshanyse Allen 63270438v.2