ATLANTA -- The Atlanta City Council voted late Monday night to redevelop the Gulch -- a 40-acre area across from Mercedez-Benz Stadium.
The vote was split with eight council members voting yes, six council members voting no and one absent council member not casting a vote.
City council members began listening to public comment on the issue at about 2:00 p.m. Monday and at 11:00 p.m. there were still people waiting to express their public comment.
Atlanta Mayor Keisha Lance Bottoms celebrated the controversial deal. In a statement, she said "We have established a new model for leveraging land development to achieve both economic growth and community good. Never in the history of our city has a single development deal been negotiated in a way that will have such far-reaching, generational impact."
The historic deal will transform the area that now mostly parking lots into a mixed-use development that includes businesses, office space and housing.
The developer, CIM from Los Angeles, wants to spend about $5 billion to fill the big hole downtown with skyscrapers, hotels, shops and restaurants. It would also include affordable housing. The details of that affordable housing are at the center of opposition to the deal.
The approved deal requires 200 or 20% of units be deemed affordable housing.
Photos of the Gulch
The deal with the City of Atlanta gives the developer a sales tax break and property tax break of up to nearly $2 billion.
In return, the developer would spend tens of millions of dollars for affordable housing, economic development and a new fire station, and other public enhancements and projects. Nearly 40 percent of the construction contracts would go to women and minority-owned firms.
Bottoms said the new gulch can be transformative for the city.
"The Gulch redevelopment will not only physically bridge the gap between the east and westsides of Atlanta, bringing economic vitality to a long-undeveloped part of downtown, but also affordable housing, workforce training, enhanced public safety, and job opportunities throughout the city.”
Former Atlanta Mayor Andrew Young said that every huge project crucial to Atlanta's growth and prosperity has been controversial. He's for the Gulch deal, while others say it would be bad for the City.
The Gulch decision is closely tied to Norfolk Southern, which has considered moving its headquarters to Atlanta if the deal passed.
The Fortune 500 company's CEO said the move was contingent on Monday's vote.
The deal passed with the following additional terms, according to the Mayor.
- CIM assuming all financial risk, including all design and construction expenses and serving as the sole purchaser of the new TAD bonds
- CIM paying taxes in full, only receiving the benefit of TAD supplemental payments as reimbursements once compliance on obligations and expenses has been independently verified. For qualified expenses, Invest Atlanta will make reimbursement payments to CIM for up to 12.5% of total project costs or through 2038, whichever occurs first
- Reducing TAD bond proceeds available to CIM from $500 million to $32 million, with up to $8 million in bond proceeds available to Empowerment Zone Communities.
This image shows how council members voted.
