Report: GM Doraville plant proposal raises questions
Source tells Real Estate Rooster that deal is ‘recipe for disaster’
Real Estate Rooster, a local news outfit that focuses on commercial property deals, got their fingers on a report commissioned by the DeKalb County Development Authority that raises questions about an Orlando developer’s mixed-use vision for the shuttered General Motors plant in Doraville.
The story’s only available to email subscribers (of which I recommend you become one, free of charge). But here’s a snippet:
A report prepared by Carter and Thompson Dawson Real Estate Services for the Dekalb Development Authority raises serious questions about Orlando-based New Broad Street’s (NBS) bid to redevelop the General Motors site in Doraville.
The report suggests that Dekalb County proceed with a $35 million bond issuance that’s technically structured to purchase public infrastructure such as roads, sidewalks and park space at the site that NBS will develop, but the report goes on to state, “The (Carter/Thompson Dawson) team has significant concerns with respect to the current structure of the transaction, the master plan itself, the market feasibility of the proposed density, and the financial performance of the project. As such, we recommend that the County carefully consider and address the concerns put forth in this report prior to actual bond issuance.” ...
The Carter/Thompson Dawson report also notes that “the bonds will not be repaid from proceeds (or other economic value) generated from any of the development on the site. The bonds will be repaid from an increase in the millage rate applied to all property in Dekalb County.” NBS also requires the county to forfeit any permit, impact and connection fees related to any improvements at the GM site. The bonds are structured as a grant to NBS, and the county will not receive any proceeds from the development, the report states, also pointing out that NBS will not assist with the interest and debt payments as the agreement currently states.
“It’s a recipe for disaster,” a source with deep Dekalb ties told us.
New Broad Street executives, citing a confidentiality agreement with GM, declined to comment to Rooster Real Estate for its piece. One executive, however, “suggested” to the site that the firm anticipates strong rental rates compared to today’s market. If you’d like the entire story, shoot me a line and I’ll forward it your way. Or better yet, sign up for the newsletter.