New Avenues of Funding to Finish the Project
The Atlanta BeltLine began as a bold idea more than 20 years ago—a way to connect neighborhoods across Atlanta and create more mobility and opportunity for everyone in our city. That same vision remains today. And while the BeltLine is closer to completion, significant work remains.
Stakeholders in the Atlanta BeltLine project recognized that completion required a new mechanism for generating the necessary funds to meet targeted dates of delivery. This reality led to the efforts to create a Special Service District (SSD) to allocate adequate resources for the completion of a project that is already transforming the city and generating jobs, development, and greater equity for all.
In March 2021, Atlanta City Council approved legislation creating the SSD that will provide approximately $100 million towards completing the Atlanta BeltLine’s 22-mile multi-use trail loop. Passage of the SSD unlocks an additional $100 million in philanthropic contributions, as well as an anticipated $50 million in grants and other sources. The legislation also compliments $100 million from the BeltLine Tax Allocation District (TAD) for trail construction and other initiatives.
The new funding will enable $45 million in additional affordable housing funds, $12 million in additional small business support, and up to $150 million in construction funds targeted towards minority-owned contractors. Completion of the trail corridor is expected to deliver a total economic impact of $10 billion and nearly 50,000 permanent jobs for the City of Atlanta.
Why is there a shortage in funding for the Atlanta BeltLine?
The funding premise of the Atlanta BeltLine assumed trail would be built soon after the creation of our primary funding mechanism, the Atlanta BeltLine Tax Allocation District, or TAD, in 2005. Completed trail stimulates economic development, which leads to more funding for the project.
Several events hindered BeltLine build out in the early years:
- Lawsuits challenging the participation of schools in a TAD,
- Renegotiation of payments Atlanta Public Schools receives over the life of the TAD,
- Fewer bonds issued to fund corridor construction,
- Tax abatements, and
- The Great Recession.
These factors created uncertainty, slowed down economic development, and reduced TAD revenue in the first decade of the BeltLine, which impacted the compound growth in funding that would have come from stimulating more TAD growth.
New sources of revenue are critical to fill the more than $1 billion funding gap BeltLine and keep our promises to deliver the BeltLine vision.
How does SSD fill the gap?
To complete the Atlanta BeltLine trail corridor by 2030, three hundred and fifty million dollars is needed. Although the Atlanta BeltLine Tax Allocation District, or TAD, is now performing well, it will not provide the full funding required.
A Special Service District, or SSD, will help fill that funding gap. An SSD is a targeted tax district where commercial and multi-family property owners pay slightly more in property taxes to fund the completion of the Atlanta BeltLine Trail.
The TAD is on track to provide one hundred million dollars for trail construction.
The increase of two mills on some five thousand parcels in the SSD would fund an additional one hundred million dollars of improvements.
An SSD would also help unlock another one hundred million dollars in matching funds from the philanthropic community.
With three hundred million dollars of confirmed funding, it will be easier to go after federal and state funding to get the remaining fifty million dollars needed.
The SSD will not only fund the completion of the Atlanta BeltLine trails, but it will also free up TAD dollars that will be earmarked for other BeltLine initiatives that will greatly benefit the community.
How will SSD impact property owners and their tenants?
An SSD is a tax district where commercial and multi-family property owners in the Atlanta BeltLine Planning Area pay slightly more in property taxes to fund the Atlanta BeltLine trail completion. Single family homeowners are not part of the district.
Affected property owners would see an additional two mills, or two dollars for every one thousand dollars of their assessed property value. For about half of the taxable properties in the district, this means less than an additional two hundred and fifty dollars annually.
For example: Natalie Brown’s company owns a shopping center about a quarter of a mile from the interim BeltLine trail. According to her assessed property value, her estimated annual SSD tax increase comes to nine hundred and thirty-four dollars. If she passed that tax on to her six retail tenants, they would pay, on average, about one hundred and fifty-five dollars each per year.
The Landmark Group owns a four-hundred-unit class A apartment complex, almost a quarter mile from the future Atlanta BeltLine trail corridor. Based on the property’s assessed value, their estimated additional annual cost from SSD would come to about sixty-two-thousand-six-hundred dollars. If they chose to pass that on to their tenants, that would mean a rent increase of about thirteen dollars a month.
This short-term tax increase from the SSD will result in long-term mobility benefits and equity to make sure the BeltLine reaches all the neighborhoods located around the 22-mile trail loop.
How will SSD drive community benefits and achieve equitable implementation of the BeltLine?
Establishing the SSD will have a tremendous impact for the City. This tool can provide the necessary funds to complete the trail project, secure additional affordable housing, and spur even more economic growth and investment in and around the BeltLine corridor. This would allow the project to deliver on the promise of better connectivity and stronger, healthier neighborhoods across the City.
BeltLine Business Voices on Finishing the Loop
Just Add Honey
MORE AFFORDABLE HOUSING OPTIONS
Affordable housing remains a top priority for the Atlanta BeltLine. Atlanta’s long and complicated history of economic disparities cannot be repaired overnight; however, the BeltLine can serve as a catalyst to help close the gap and ensure greater equity for all through its’ ability to create/preserve more affordable units, while creating more jobs along the corridor to help residents stay in place.
- ABI currently has projected $90M allocated to affordable housing through 2030. New, dedicated funding for trail completion through the SSD and philanthropy – combined with increased TAD revenue from new development along the completed trail – will provide an incremental $45 million in TAD funding to create deeper and longer-term affordability around the BeltLine.
- SSD approval can help the Atlanta BeltLine achieve the original goal of 5,600 units of affordable housing within the BeltLine TAD by 2030.
- Through the support of the philanthropic community, a recently launched community retention fund is expected to provide an additional $12.5-million for nearby legacy homeowners concerned about displacement by helping pay property tax increases and provide more resources to help them stay in their homes.
- Ongoing home empowerment workshops protect both renters and homeowners from displacement through education on eviction relief, homestead exemptions, and property tax appeals. Workshops also refer participants to numerous service providers and key COVID-19 relief programs. For the past three years, over 2,000 registrants have connected with the program.
ADDITIONAL ECONOMIC IMPACT
It is anticipated that the SSD will spur a total of 50,000 jobs created near the Atlanta BeltLine, approximately 20,000 more than originally projected. As Atlanta seeks to emerge from the economic damage done by the COVID-19 pandemic, these opportunities will be imperative for residents to regain financial security and to be positioned to thrive moving forward.
- To ensure equity and inclusion is fully-integrated into our operations at ABI, we are committing to allocating up to $150 million of construction funding to minority-owned contractors.
- The SSD will also free up an additional $12 million from the Atlanta BeltLine TAD for small business support – which will serve as a key investment to ensure that the Atlanta BeltLine is more representative of the neighborhoods it serves and is best positioned to thrive for the future.
Keeping the Project On Track for Completion
The below maps estimate the progress of trail construction by year. It assumes that the completion priority order is based upon design readiness, and that funding is available for construction when projects are shovel ready. For a chart view, download the Trail Completion: Special Service District Plan PDF.
SSD Project Timeline
The timeline below outlines SSD activities and next steps. Community engagement will continue and all meetings will be posted at beltline.org/meetings.
Updated focus on trail development introduced by the CEO and approved by the ABI Board.
Atlanta City Council introduced legislation to create a Special Service District.
February – March
ABI and ABP hosted six public meetings featuring the SSD and presented at several more to solicit feedback. Thousands of letters, phone calls, and emails were sent to property owners and small businesses along the corridor.
Atlanta City Council voted to adopt the three ordinances creating the SSD with the following amendments based on comments and concerns from the community:
- ABI and ABP will partner alongside communities to advocate for infrastructure improvements around connectivity, wayfinding and public safety within the overlay and in adjacent neighborhoods;
- ABI will form a stakeholder advisory board providing an additional layer of oversight;
- Two funding amounts were revised: from $50 million to $45 million as it relates to affordable housing and from $7 million to $12 million as it relates to small business support from the BeltLine TAD;
- The City Auditor will conduct a review of the SSD’s financials every two years; and
- The funds will solely be used towards trail acquisition, design, and construction.
ABI began the process to issue bonds. ABP advanced discussions with the philanthropic community.
ABI’s Economic Development team began working with and soliciting feedback from individual businesses, business associations, and Community Improvement Districts to build a plan to address their needs through a comprehensive economic development plan.
Multiple departments continued to explore the next steps in procuring minority-owned firms as construction projects advance.
ABI issued a call for volunteers to form a stakeholder advisory board.
The additional 2 mills appeared on commercial and multi-family property owners’ tax bills. Collection begins when tax bills are due.
Bonds financed by the SSD closed on December 9. Atlanta BeltLine, Inc. and the Atlanta BeltLine Partnership announced a momentous $80 million contribution from the Robert W. Woodruff Foundation to help fund the completion of the BeltLine trail corridor. More than $300 million has now been committed towards the $350 million needed for trail completion.
ABI’s Board of Directors approved the formation of the Special Service District Advisory Council.
The SSD Advisory Council, made up of commercial property owners, small business operators, multifamily property owners, and multifamily rental property residents located in the SSD, met for the first time.
James M. Cox Foundation donated $30 million to fund the completion of the mainline multi-use trails.
Providing Answers to Common SSD Questions and Resources
Below are common questions regarding the Atlanta BeltLine Special Service District.
How can we provide input and ask Atlanta BeltLine, Inc. questions about the Special Services District and trail construction?
Atlanta BeltLine, Inc. hosts regular community meetings to provide project updates and receive public input. We welcome your questions and feedback and offer many opportunities to get involved to support the Atlanta BeltLine.
How will you ensure minority-owned business participation?
Atlanta BeltLine, Inc. will allocate up to $150 million in BeltLine trail construction funding to firms owned by African Americans and other minority-owned businesses. To accomplish this, we are utilizing the following strategies:
- Work with minority-focused business groups in attempts to recruit minority business participation in ABI bids and contracts
- Emphasize the importance of soliciting certified minority businesses for subcontracting opportunities to prime contractors at pre-bid conferences and in the bid documents
- Advertise bid opportunities in minority-focused networks and media
- Break down or combine elements of work into economically feasible units to facilitate minority participation
- Encourage joint ventures and partnership arrangements with minority businesses in order to increase opportunities for minority business participation on projects when possible
- Closely track and provide regular reports on Disadvantaged Business Enterprise participation
How will the Special Service District affect commercial and multi-family property owners in the Atlanta BeltLine Planning Area?
Property owners will see an increase of approximately 2 mills – or two-tenths of one cent – per every $1 of assessed property value.
For example, a commercial or multi-family property owner with a parcel of land appraised for $1 million pays taxes on an assessed value equal to 40% of the full value. This parcel would be assessed taxes based on a value of $400,000. Two-tenths of a cent per dollar of assessed value on this parcel is $800. So, for a million-dollar property, the increase would be just $800 per year.
At 2 mills, about half of the taxable SSD parcels would be assessed less than $250 annually. An estimated 82% of SSD parcels contained in the proposed SSD would be assessed less than $1,000 annually.
The increased millage rate went into effect on Fulton County tax bills in fall 2021.
Are owners of single-family houses, condos, or townhomes part of the SSD?
No. Owner-occupied residences, including single family homes, condos, and townhouses, are not part of the SSD.
What area will the Special Service District encompass and how will the funds work?
The Special Service District (SSD) includes commercial and multi-family properties in the Atlanta BeltLine Planning Area. These property owners will invest in the completion of the 22-mile BeltLine trail corridor through a slight increase in the millage rate.
Revenue from the SSD finances bonds that will generate an estimated $100 million that will be used alongside funding from the BeltLine Tax Allocation District (TAD), philanthropic support, and other funding sources to complete the BeltLine trail corridor. Once the bonds are paid off, the district will sunset.
The revenue from the SSD will free up TAD funds so an additional $45 million can be used towards housing affordability and $12 million can be provided in small business support.
What is a Special Service District (SSD) and how is it created?
A Special Service District is a targeted tax district where property owners pay slightly more in property taxes to fund improvements from which they will benefit – in this case, funding to complete the Atlanta BeltLine trail.
On March 15, 2021, Atlanta City Council voted to adopt the three ordinances creating the SSD. The ordinances will create the district, establish the millage rate increase, and allow for bonding.
Where will the funds to finish the BeltLine trail corridor come from?
As with every part of the BeltLine that has been finished to date, funding comes from multiple public and private sources. The plan for completing the BeltLine trail includes $100 million each from the BeltLine Tax Allocation District (TAD), philanthropic contributions, and a Special Service District (SSD). These three primary funding sources, providing a total of $300 million, will be leveraged to secure the remaining $50 million from additional federal, state, and local sources.
Why are additional funds needed beyond the Atlanta BeltLine Tax Allocation District (TAD)?
Early legal disputes delayed the ability to issue a fully backed bond to finance BeltLine implementation until the end of 2016 – more than a decade after the Atlanta BeltLine Tax Allocation District (TAD) was first created. The lack of early funding to construct the BeltLine, combined with the Great Recession, led to a slower pace of private development around the full BeltLine than initially anticipated. As a result, the TAD is expected to generate $1 billion less than originally projected before it closes in 2030.
What is the cost to complete the 22-mile Atlanta BeltLine trail corridor?
The estimated cost to complete the remaining land acquisition, design, utility relocation, and construction for the full 22-mile trail corridor – including ramps and stairs for access, lighting and cameras for safety, and linear greenspace for public enjoyment – is approximately $350 million.
The trail corridor is one component of the full $4.8 billion BeltLine Redevelopment Plan, which also includes parks, transit, affordable housing, public art, environmental clean-up, and streetscape improvements.
How does completing the Atlanta BeltLine trail aid economic development for surrounding neighborhoods?
The Atlanta BeltLine is a proven economic engine. By completing the BeltLine trail, thousands more residents will be better connected to existing job centers through better transportation options. And the Atlanta BeltLine will ignite the development of new job centers, restaurants, retail, and housing.
The completion will support a projected 50,000 jobs around the 22-mile trail loop. That includes middle-wage jobs and careers attainable to residents without advanced degrees. We’ve committed to partnerships providing job training and helping workers find nearby job openings.
As the BeltLine is completed, nearby businesses will benefit from new customers, including residents, workers, and visitors to BeltLine neighborhoods. We’re dedicated to supporting small businesses with façade improvements and other tools to draw in more business activity for legacy businesses.
Further, Atlanta BeltLine, Inc. will allocate up to $150 million in trail construction funding to firms owned by African Americans and other minority-owned businesses.
How will completion of the BeltLine trail corridor enhance affordable housing around the Atlanta BeltLine?
Expanding affordable housing remains a top priority for the Atlanta BeltLine. Atlanta’s long and complicated history of economic disparities cannot be repaired overnight. By creating and preserving more affordable homes while also generating more jobs along the corridor to help residents stay in place, the BeltLine can serve as a catalyst to help close the income inequality gap and ensure greater equity for all.
Completing the BeltLine trail corridor will stimulate more housing production. Because the City of Atlanta instituted inclusionary zoning around the BeltLine in 2018, developers must build affordable units in all new multi-family rental developments.
As of June 2022, 3,100 units of affordable housing have been created or preserved in the Atlanta BeltLine Tax Allocation District (TAD), putting ABI at 55% of its overall goal of 5,600 units by the end of 2030. The most recent housing numbers can be viewed at www.beltline.org/housing. Atlanta BeltLine, Inc. (ABI) is supporting developers who create affordable housing with the BeltLine Affordable Housing Trust Fund and strategically acquiring land near the BeltLine to ensure deeper and longer-term affordability.
In order to provide homeowners with tools to fight displacement, ABI and the Atlanta BeltLine Partnership (ABP) are operating a Legacy Resident Retention Program to assist nearby legacy homeowners with paying property tax increases through 2030. The philanthropically funded program is expected to provide $12.5 million in assistance over 10 years. ABP also works with multiple partners to offer Home Empowerment Workshops that connect homeowners and renters with resources to help them stay in their homes.
Why do we need to act now to finish the BeltLine trail corridor?
Because it will deliver economic benefits where Atlanta needs them most.
Atlanta is facing an economic and racial inequity crisis amplified by COVID-19. We need jobs, affordable housing, and new opportunities to help restore Atlanta’s economic and community well-being.
The Atlanta BeltLine can play a significant role in our city’s growth and economic recovery. But to do so in an equitable and inclusive manner, it must be completed. That way, the BeltLine will benefit all the communities it connects.
The completed Atlanta BeltLine trail corridor is expected to deliver a total economic impact of $10 billion and nearly 50,000 permanent jobs. Additional benefits include access to health and recreation opportunities, new homes nearby, closer proximity to health care providers, and expanded broadband connectivity.
But without significant additional funding, the Atlanta BeltLine trail will not be complete before 2030.
Early legal disputes followed by an economic recession mean the BeltLine Tax Allocation District (TAD), the Atlanta BeltLine’s primary source of funding, is expected to generate $1 billion less than originally projected before it closes in 2030.
To ensure all the components of the Atlanta BeltLine are delivered equitably and improve quality of life for Atlanta’s residents, additional funding now is critical.
View resources below to stay up to date on the SSD details.
|Special Service District Estimated Budget and Expenditures|
This series of pie charts provide estimated allocations of the SSD funding for each sector of the trail along with a breakdown of funding by expenditure type.
|Special Service District Fact Sheet|
Finishing the Loop: Key Facts About the Special Service District Proposal
|Special Service District Benefits|
The Special Service District will provide many benefits, such as $50 million in additional Affordable Housing funding, 50,000 new jobs near the Atlanta BeltLine, and more.
|Trail Completion: Special Service District Plan|
The proposed timeline, by segment, of trail completion with the Special Service District proposal.
Estimate your potential annual tax increase within the Special Service District.
How to Estimate SSD Tax Increase
Step 1: Determine if your property falls within the BeltLine Special Service District
Commercial and multi-family property owners with taxable parcels within the Atlanta BeltLine Planning Area may fall within the BeltLine Special Service District (SSD). Use our Special Service District Address Lookup tool to find out if certain parcels are included in the SSD. The official records of the City of Atlanta are the sole determinants of whether property is included within the boundaries of the SSD and should be consulted to determine if a property is subject to the levy of the special service assessment.
- Single family homes, townhomes, condos, duplexes, triplexes, and multi-family zoned residential are not part of the BeltLine Special Service District, even if they are located within the Atlanta BeltLine Planning Area.
- The BeltLine Special Service District assessment is paid by the owner of the property. It is not a tax on commercial tenants or renters. However, commercial tenants should refer to their lease to determine if they are responsible for reimbursing their landlord for property taxes based on the amount of square footage they lease.
Step 2: Estimate your potential annual tax increase
Follow these steps:
- If your commercial or multi-family rental property falls within the Planning Area, look up your most recent tax valuation on the Fulton County Board of Assessors website.
- Identify the assessed value (not the Appraised Value or Fair Market Value), which is the amount used to determine the amount of taxes owed each year.
- PLEASE NOTE: Property owners will not have to pay the SSD assessment until the fall of 2021, and the amount will be based on 2021 property values. The Fulton County Board of Assessors will not finalize 2021 property values until later this year. The 2020 values currently available can be used to estimate the amount of the SSD assessment but the actual SSD amount billed in 2021 may be different.
- The SSD is based on a slight increase of 2 mills – or two-tenths of one cent – per every $1 of assessed property value. That means properties will incur an additional $2 per every $1,000 of assessed value annually.
- To calculate the SSD assessment at 2 mills, take the assessed value of your parcel, divide it by 1,000, and multiply the result by 2.
OR, use the estimator below:
SSD Property Tax Estimator
If you are a commercial or multi-family property owner in the Special Service District, use this tool to estimate the amount of the SSD assessment. (NOTE: The current SSD assessment or levy as approved by the City Council is 2 mills.)
Free-standing bar/restaurant on ~0.3 acre approximately 1/8-mile from the Atlanta BeltLine Eastside Trail.Appraised value: $347,500Assessed value: $139,000Estimated additional annual cost from SSD @ 2 mills: < $300
|Medical Clinic Example
Free-standing medical clinic on ~0.5 acre approximately 1/3-mile from the Atlanta BeltLine Westside Trail.Appraised value: $1,097,900Assessed value: $439,160Estimated additional annual cost from SSD @ 2 mills: < $900
|Affordable Rental Development Example
43-unit affordable rental housing development comprised of 7 parcels totaling ~6.8 acres less than 1/4-mile from the future Atlanta BeltLine Southside Trail.Appraised value: $1,928,100Assessed value: $771,240Estimated additional annual cost from SSD @ 2 mills: < $1,550
|Class A Apartment Development Example
397-unit class A apartment on ~7.7 acres approximately 1/4-mile from future Atlanta BeltLine Northwest Trail.Appraised value: $78,168,000Assessed value: $31,267,200Estimated additional annual cost from SSD @ 2 mills: < $62,600
Single-occupancy retail on ~0.05 acre approximately ½-mile from the future Atlanta BeltLine Southside Trail.Appraised value: $117,000Assessed value: $46,800Estimated additional annual cost from SSD @ 2 mills: < $100