ATLANTA — Protesters are trying to convince the city not to go forward with the nearly $2 billion proposal to develop an area called “The Gulch,” Downtown.
One of the chief concerns – the huge proposed tax break for a private developer. Another – what the project will do to affordable housing.
Mayor Bottoms told 11Alive Wednesday 30 percent of the housing would be affordable. But 11Alive talked with people though who are concerned the proposal doesn't have enough affordable housing, and gives $1.75 billion in tax breaks to a private developer.
So, what is affordable housing, and what would it look like at the hole in Downtown known as the Gulch? The textbook definition is it is housing affordable to people making 80 percent of the area median income. Data from Invest Atlanta makes it a bit easier to understand. In Atlanta, rent for a one-bedroom unit can't cost more than $1,100. A two-bedroom is capped at $1,350, and a three-bedroom can't exceed $1,556.
Mayor Bottoms said the deal with California-based developer CIM to build up the Gulch includes up to 30 percent of housing classified as affordable.
"The standard for the city is actually 15 percent, so we are doubling what our standard is,” the mayor said. “We know that affordable housing and affordability of our city is extremely important, and it is the reason why we went above and beyond."
During a recent public city council discussion on the Gulch plan though, former Atlanta City Councilman Derrick Boazman didn't view the affordable housing portion of the Gulch as above and beyond.
"Slow this process down," he called for.
11Alive spoke with Boazman, who continued to say the deal is misguided. He believes the housing won't be affordable to the residents who need it.
"The reality of it is, the people working in this restaurant, those men on the corner who are working, they are making $7.50, $8 an hour. If affordable for them means an apartment at 4, 5, $600, that is the major difference," he explained.
Boazman also believed the Gulch proposal would lead to gentrification, and push current nearby homeowners and renters out.
"It artificially inflates the value of Grandmama's house, who isn't looking to buy or not looking to game this market," he added.
Photos of the Gulch
Mayor Bottoms, though, stands by the 30 percent number for affordable housing at the Gulch, and said she knows affordable housing is a top need throughout the city.
A nationwide survey released from rentcafe.com this month described 90 percent of apartments built in Atlanta last year as “luxury,” not affordable.
But Mayor Bottoms said the city is “completely and intently focused on the affordable housing issue in the city of Atlanta” and that is why the city insisted that there be additional funding in place to address that.
