Centennial Yards is heading into the next phase of its 50 acre development after the board of Invest Atlanta approved the developers’ sale of about $557 million in bonds and certificates to pay for the next phase.
“We anticipate breaking ground on the entertainment district next month which is very, very exciting. “ CIM Group Vice President Ben Vera said. “Our goal is to complete that shell by the world cup.”
The 50-acre downtown project will transform what locals call the “Gulch,” a series of paved parking lots into the “largest entertainment district in the Southeast.” Once completed, developers plan for 2.8 million square feet of residential space and 1.7 million square feet of hospitality space. It will also have 900,000 square feet of retail space and 300,000 square foot data center.
Project developer CIM Group aims to finish a portion of the project in time for the 2026 FIFA World Cup and create a hub for the millions of people set to attend Atlanta’s eight matches. Its central location is primed for the crowds coming to sporting events with the Hawks, the Falcons and Atlanta United FC.
So far, CIM Group has spearheaded the replacement of 1,300 square feet of sewage line, construction of the Steele Bridge, The Lofts at Centennial Park South and Wild Leap Brewery.
In 2021 the city approved a public finance component of up to $1.8 billion. At the board meeting, Invest Atlanta said there’s no more money coming from the city, just utilization of pre-allocated funds – up to $625 million in the form of bonds and supplemental award payments.
“Starting in November of 2021 a master financing program was approved by the city and invested and there were two sets of finances,” outside counsel Douglass Selby said.
Bonds must be sold to investors to finance the project and then paid off through future tax revenue from the area. A syndicate of J.P. Morgan, D.A. Davidson & Co. and Truist Securities will manage, market and underwrite the bonds.
The two sets of funds are the existing Westside Tax Allocation District created in 1998 and the Enterprise Zone Infrastructure Fees created in 2017, which replace a portion of the sales and use taxes within a boundary. The “Gulch” sits within the Westside TAD and the project is authorized to collect “tax allocation increment” to finance redevelopment costs.
With the funds approved, CIM Group will move ahead on the next phase of development with a 292-key hotel that has 14,000 square feet of retail space and 304 residential units. The developers will also break ground on the entertainment district in July 2024.
The “E1 and E2” phases, consisting of the hotel and residential units are set to top out by November 2024. After those phases are complete, the project will move into the second hotel and residential construction .
Officials said the move allows the developer to access cash in the capital markets without creating any new obligations for the city and Invest Atlanta.
Previously, the project saw critiques from a lack of affordable housing across the millions of feet in residential space. In 2021 the city negotiated $42 million for a community benefits agreement, with some money going into low-income housing. The buildings are also required to keep 20 percent of all units affordable to those who make 80 percent or less of the area median income.
For one person the area median income is $54,000 which maxes out one-bedroom rent at $1,447. Of the newly-built 162 residential units at The Loft, 25 are affordable under the area median income designation. Additionally, a certain portion over $550 million from the Enterprise Zone funding would have to be contributed to the Affordable Housing Trust Fund.
The Invest Atlanta board of directors also approved the BeltLine, Inc. fiscal year 2025 budget set at $172 million. It’s the BeltLine’s largest budget to date and puts the trail construction on pace to close the loop by the end of 2030.
It’s a 12 percent increase from last year’s budget, but the added funds will pay for the 5,600 unit affordable housing plan – now on track to exceed the goal by 30 percent.
“For us, the BeltLine is all about the people and the experience, the people-powered project is a destination for cultural connection, quality of life and economic equity,” BeltLine, Inc. President and CEO Clyde Higgs said. “Supported by our new budget, we will exceed our goals for affordable housing, accelerate the pace for trail work and invest in more economic opportunities for all.”
