Fulton County puts off decision to withdraw from Westside TAD

It was a close call for the City of Atlanta and its Westside developments.
A resolution introduced by Fulton County Commissioner Bob Ellis called for the county to no longer participate in new projects in the city’s Westside Tax Allocation District (TAD).

After a long debate, the commission voted unanimously at its July 9 meeting to table the resolution until the county could examine the possible fallout. County leaders also would like to have discussions with the City of Atlanta leaders. 

The Westside TAD has set aside tax dollars that can be used to leverage economic development in Vine City and English Avenue. The Westside TAD will be in effect until 2038, unless the participating governments decide to extend the popular economic development tool.

Several Fulton County commissioners are not enthusiastic about being part of the Westside TAD. Ellis said the funds that are in the TAD could go to covering county expenses, which could put off a property tax increase. 

The county is currently considering passing an increase in its millage rate, with a vote expected on Aug. 6. Fulton commissioners appear to be split on how to raise revenue to pay the county’s bills. Some support increasing the millage rate. Others are in favor of pulling their participation in the Westside TAD.

But city leaders expressed strong opposition to the county prematurely withdrawing from the Westside TAD.

Courtney English, chief policy officer and senior advisor to Atlanta Mayor Andre Dickens, said he thinks such a move by the county would be illegal. 

“From the City of Atlanta’s perspective, this would stop or stall every affordable housing project in the Westside TAD footprint,” English said. “This would be devastating to the westside of the city.”

English added that such a move would hurt the county. “What’s clear, when Atlanta does well, Fulton County does well,” he said.

But Fulton Commissioner Khadijah Abdur-Rahman, whose district includes part of the Westside TAD, was not convinced. 

“The Westside TAD has a verifiable surplus that can be repurposed now,” she said, adding that accessing existing Westside TAD dollars could mean the county wouldn’t have to pass a property tax increase.

Fulton County Commissioner Dana Barrett said the county’s focus is misplaced. Instead, the county should be examining the giveaways made to projects approved by the Fulton County Development Authority. 

Barrett also said she was scared of the county’s legal exposure if it were to pull its participation for the Westside TAD for the next 13 years.

Commissioner Marvin Arrington Jr. said it would have been better for the two governments to communicate about the issue before it was placed on the agenda.

“You don’t just show up with an agenda item and say we are going to shut this down,” said Arrington, before making a substitute motion to hold the resolution.

Commission Chair Robb Pitts seconded the substitute motion to further study the issue. That motion passed unanimously.

There are many currents and undercurrents at play. The county is facing a consent decree to improve the poor condition of the Fulton County jail. Then there’s the talk of a millage increase.