Under Georgia law, Dekalb County nor the City of Doraville can grant a property tax abatement.
This project was structured as a bond-financed sale-leaseback. It sounds complicated, but let me explain. Essentially, the developer will go into the private capital markets and secure financing. The property title will then be vested in the Doraville Development Authority which is a tax-exempt authority who will lease the property back to the developer for a rent equal to the debt, avoiding any property tax that would otherwise be owed. Once the debt is retired, the developer has the option to buy it back from the Doraville Development Authority for $10.00.
The developer will pay the Doraville Development Authority $160,000 a year for years 1-6 and will escalate 2% per year thereafter. Estimating conservatively, the developer will pay the Doraville Development Authority over $2,500,000 as an administrative payment. These payments will be reinvested into other economic development projects in the City of Doraville.
In any case, this arrangement is non-recourse, meaning state law protects the Doraville Development Authority and the City of Doraville from any debt obligation. No taxpayer money will ever be spent on this project.