Boomtown

Alpharetta has Big Hopes for its Historic Downtown

By Jennifer Maciejewski

With its great schools, corporate strongholds and easy access to Downtown Atlanta, Alpharetta remains a hot spot in the metro area’s real estate market. Since 2000, the city has added 4,725 housing units, according to the Atlanta Regional Commission (ARC), and while the real estate market has cooled in much of the country, sales remain strong in Fulton County. In 2005, existing home sales rose 10 percent and new home sales rose 33.6 percent over the previous year, according to Smart Numbers.

Not content to rest on its laurels, Alpharetta remains committed to making a good thing even better. Still in the drawing phases, two new projects — the proposed Alpharetta City Center and the recently green-lit Encore Park amphitheater — promise to revitalize the city’s downtown core.

A New Vision for Downtown

Located at the intersection of Milton and Main streets, historic downtown Alpharetta Square features antiques and flower shops as well as gift shops and dining. And while the area is growing — the downtown district saw a population increase of 18 percent between 2000 and 2006 — it is not keeping pace with the city as a whole, where the population rose by 23 percent during the same period.

On the cusp of successfully wrapping up its first Economic Development Action Plan, the city hired The Sizemore Group in 2002 to take a look at Downtown Alpharetta and create a revitalization plan. In its Alpharetta Downtown Master Plan, The Sizemore Group designated a 212-acre area as having the potential to become the city’s revitalized core. By redeveloping the area to blend commercial, residential and community uses, Downtown Alpharetta would serve as a destination for visitors and local residents alike.

“We would like to see downtown really become the heart of the community and attract residents and others to come visit downtown, shop in the stores, eat at the restaurants,” said Diana Wheeler, director of community development. “We want to add entertainment, nightlife and family friendly things that appeal to the Alpharetta community. We want downtown to be as much of an attraction as some of the other parts of Alpharetta, like the North Point Mall and Windward Parkway areas.”

Alpharetta City Center

“When we looked at what the objectives for the downtown were and who the property owners were, we recognized that the city itself actually owns a good bit of property in downtown,” Wheeler continued. “We thought it would be good to create a catalyst for redevelopment by starting on the city-owned property.”

A public-private partnership, the proposed Alpharetta City Center consists of more than 9 acres of land in the southwest quadrant of the center of historic downtown, bounded by Academy Street (Milton Avenue) to the north, South Main Street to the west, Haynes Bridge Road to the east, and abutting the Publix shopping center on Old Milton Parkway to the south.

“When you have a city like Alpharetta, you want to make sure your downtown doesn’t die.”
Debbie Gibson - City Councilwoman

Although barren parking lots and underutilized buildings make up much of the property on the site today, the new Alpharetta City Center will feature 80,000 square feet of retail and restaurant space, 40,000 square feet of office condo space and 162 residential condos. Scheduled to break ground in the spring, the project also includes parking decks, a new 63,000-square-foot city hall and a central 1-acre public space that will be used to host community events, such as the Taste of Alpharetta, holiday tree lighting, Old Soldier’s Day and Alpharetta Arts Streetfest.

While the city of Alpharetta owns half of the property designated for the Alpharetta City Center, Barry Real Estate Companies, the project’s master developer, and the project’s other partners have privately acquired the remaining land. In addition to serving as the master developer, Barry Real Estate Companies will develop the parking decks, the new city park and the new city hall, plus they’re a joint venture partner in the office condominiums with Parkside Partners. Hedgewood Properties will be responsible for the development and sale of the residential condominiums while Madison Retail will develop and manage the retail component of the project.

Helping Out a TAD

Barry Real Estate Companies estimates that the Alpharetta City Center will represent nearly $96 million in new investment in Downtown Alpharetta and generate $20 million in additional retail sales. But paving the way for that redevelopment effort isn’t a cheap proposition, especially given that infrastructure improvements will cost the city an estimated $14.3 million.

To offset the cost of the proposed city plaza as well as a portion of the parking and streetscape improvements, the city created a Tax Allocation District (TAD) for the Alpharetta City Center, which will generate nearly $8 million for the project. When a TAD is created, the city of Alpharetta, Fulton County, and the Fulton County School System agree to freeze the funds they collect from property taxes at the current tax base, pledging the additional increments to repay bond debt.

Diana Wheeler, director of community development.

And while TADs often stir up debate within the community, the Alpharetta City Center proposal was unanimously approved by the City Council, Fulton County Commission and Fulton County Board of Education. “You have controversy when you have a very large project that you’re putting forth on a TAD proposal,” said Arthur Letchas, mayor of Alpharetta. “But this is a very specific and very small project. We’re only talking about 9 acres out of a downtown area that encompasses 212 acres. There’s a halo effect. When this one project starts, others will start that will not be impacted by the TAD. There are 12 specific projects out there that are looking to see this [one] start before they start their projects, which will give the board of education and the county more tax relief.”

Though it is not directly related to the Alpharetta City Center TAD, a lawsuit addressing the constitutionality of Georgia’s TAD system is currently making its way through the courts, and until that issue is resolved, the Alpharetta City Center will be on hold, as the city cannot currently sell the bonds. Whatever the outcome, the city still plans to redevelop the 9-acre site, although it may need to scale back the project if it cannot subsidize its costs with a TAD.

“It’s a very exciting project,” said Debbie Gibson, city councilwoman. “When you have a city like Alpharetta, you want to make sure your downtown doesn’t die. It’s going to create a really nice environment for people to live downtown and support the businesses downtown. Until that lawsuit has come to some conclusion, we’re not going to move forward with this, but we’re hoping, if everything goes our way, that we will open up in November 2008.”

Encore, Encore

While it’s located outside of the 212-acre downtown district, the Atlanta Symphony Orchestra’s (ASO) planned $35-million Encore Park for the Arts amphitheater will provide a greater incentive for Alpharetta’s residents to relocate to the city’s core. Expected to open in May 2008, Encore Park will be built on 45 acres across Ga. 400 from North Point Mall. With 7,000 covered seats and room for 5,000 more on the lawn, the 12,000-seat venue will host everything from ASO performances and touring Broadway shows to pop concerts and community events.

Although Fulton County and the city of Alpharetta each contributed $1 million toward building Encore Park, their investments will pay dividends for years to come. “Our one-time contribution has changed the face of the future of North Fulton County and provides a much needed arts and cultural atmosphere for our citizens and the corporate community,” Gibson said. “This is a wonderful opportunity for the citizens of Alpharetta to attend world-class events close to home and for us to continue to promote Alpharetta as a first-class city to live, work and play.”