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Atlanta started to see a decline in sales volume and units in June, 2007. And, to date, our market has still not recovered. Year over year decline in closings is over 30% from last year.

OVERALL ATLANTA MARKET RECAP

• Market has experienced declines for the past 18 months in a row.
• An average of 7 percent of all outstanding listings are selling each month.
• Past 3 (three) months show slight increases of home values. A possible indicator Atlanta home values may be stabilizing.
• New home construction is down over 80 percent
• Mortgage rates projected to decline slightly over the rest of the year with a gradual increase over time.
• Months supply of inventory for single family detached homes (resale) stands at 13.2
• Months supply of inventory for condos (resale) stands at 13.6

A LOOK BACK OVER SEPTEMBER, 2008

Economic conditions will obviously play a big part in the housing recovery for all markets: Oil prices have dropped considerably, we should start seeing improvement in the credit markets; and, although Atlanta has always provided affordable housing compared to many other parts of the country, it is without question, home prices are even more affordable now than they have been in years.

Articles of Interest:

Opec Basket Prices
Short Term Energy Outlook
The Forecast

Data is believed accurate at time of recording, but not guaranteed.

Sleigh bells ring are you listening?

• enjoy the old town holiday festival and caboose lighting.
• watch as santa magically lights the red caboose
• sing along with the elementary choruses
• giggle with delight while enjoying a carriage ride
• stay warm with hot chocolate
• fill your tummy with yummy s'mores and cookies

Every two (2) years, in the Governor's and Presidential Election in the State of Georgia, the state legislature has the authority to ask the voters of Georgia to change the State Constitution. This year is no exception. One note to point out that I recently was told, over the past 12 years, 40% of the people who actually vote for Governor or President never vote on these important ballot questions (mainly because the politicians make these very confusing).

This year at the end of the ballot, you will see three (3) Amendments to the Georgia State Constitution. Although I am one of the AJC's worst critics, the best explanation of these three amendments (including their endorsement which I agree), was published in Wednesday's edition last week. Please take a moment to read through these and if you feel as though you need more information than that is provided, please contact me and I will try my best to answer your questions. To summarize the information below:

Amendment #1 - Deals with preserving forests in Georgia with the use of a property tax incentive program. Vote Yes. (will mainly be used in southern Georgia)

Amendment #2 - Allows local school boards the choice to participate to improve blighted property in redevelopment areas. Vote Yes. (will mainly be used in Metro Atlanta including Gwinnett and the School Board supports its passage)

Amendment #3 - Allows developers the authority to charge a tax to future homeowners for infrastructure improvements. Vote No. (will mainly be used in south Georgia, currently used in northern Florida with a lot of problems).

Finally, the very last question on the ballot is specific to Gwinnett County. It is the extension of the 1 cent sales tax that has been critical to Gwinnett over the past decade. This five year extension (not a new tax) will raise $850M for roads and bridges, green space and parks, new court rooms, fire stations, police stations and libraries. This is certainly a yes vote for Gwinnett for this last question on the ballot.

Chuck Warbington,PE
Executive Director
770.449.6515 (Tel)
770.449.6561 (Fax)
www.GwinnettVillage.com

Guide to voting on state ballot questions

Atlanta Journal Constitution

Wednesday, October 01, 2008

Georgia voters face three proposed amendments to the state constitution this year, all of them dealing with changes in local taxing authority. Two of them deserve qualified support but will require careful monitoring after passage. The other should be rejected outright.

Text of proposed amendment No. 1:

To encourage the preservation of Georgia's forests through a conservation use property tax reduction program.

"Shall the Constitution of Georgia be amended so as to provide that the General Assembly by general law shall encourage the preservation, conservation, and protection of the state's forests through the special assessment and taxation of certain forest lands and assistance grants to local government?"

Explanation: This amendment would allow a special property tax assessment on tracts of 200 acres or more of forest land, provided the owner agrees not to change the way the land is used or sell it for development for at least 15 years. The assessment would be based on the value of the land in its current use and would not be influenced by neighboring tracts that are sold for development. If the owner reneges on the agreement, local governments would be authorized to recover the taxes that would have been levied against the property. Conservationists believe the amendment is needed to keep owners from being pressured into selling their property because they are paying higher taxes due to adjacent development.

The amendment also authorizes the General Assembly to appropriate grants to local governments to offset the loss of tax revenue from the lower assessment of such property. This portion of the amendment is critical since many rural school districts would lose even more of their tax base. Local school officials estimate that the cost to the state for reimbursements would be about $34 million annually. They worry that the Legislature will back off its commitment to help when the state budget is tight, which is why the Georgia School Boards Association opposes the amendment. Vote YES.

Text of proposed amendment No. 2:

To authorize local school districts to use tax funds for community redevelopment purposes.

"Shall the Constitution of Georgia be amended so as to authorize community redevelopment and authorize counties, municipalities and local boards of education to use tax funds for redevelopment and programs?"

Explanation: This amendment was necessitated earlier this year when the state Supreme Court ruled that the Constitution does not allow local governments to use school property tax revenue to help finance redevelopment projects. Dozens of projects around metro Atlanta, as well as other cities around the state, were proposing to use a financing mechanism called tax allocation districts to stimulate redevelopment in areas where developers would not otherwise be able to get conventional financing. Most of the tracts asking for the designation are in depressed areas that currently generate little or no tax revenue.

Tax allocation districts, or TADs, work by freezing property taxes in these designated districts while they are being redeveloped. Then, as the property is being improved and sold for residential and commercial use, the new taxes are used to pay off the debt for the redevelopment project. In the long run, everyone benefits, promoters say. Depressed property is improved and more taxes go into the general coffers.

This amendment does not authorize specific TAD-financed projects anywhere in Georgia. It merely allows school property taxes - which account for about two-thirds of all local property taxes - to become a part of the mix. Local school boards would retain the authority to say "no" to the use of school taxes or to negotiate specific terms in order to approve a TAD. That's important because some of the projects promoted for TADs in recent years are too risky, especially in a depressed housing market. Local government officials, including school boards, should scrutinize these requests closely before approving them, demanding to know why the developers can't get conventional market financing or why local governments won't issue general revenue bonds to get them off the ground.

Tax allocation districts can be a useful financing tool for well-conceived projects that might not otherwise be affordable. But they also should be used sparingly. This amendment will allow communities to keep them in their redevelopment tool box. Vote YES.

Text of proposed amendment No. 3:

To authorize the creation of special Infrastructure Development Districts providing infrastructure to underserved areas.

"Shall the Constitution of Georgia be amended so as to authorize the General Assembly to provide by general law for the creation and comprehensive regulation of infrastructure development districts for the provision of infrastructure as authorized by local governments?"

Explanation: This amendment would give developers the right to assess fees to future homeowners in unincorporated communities to help pay off bonds for infrastructure. The proposal has been cleaned up somewhat from an earlier version, which had been referred to as a "private cities" bill. The districts would first need the approval of the local government before they could be formed, and developers using them also would be required to set aside some property within the development for green space.

Still, taxation, even in the form of a fee, is a power that should be confined exclusively to elected officials who can be held accountable to voters. There is no compelling reason for state or local government to surrender that power to developers. Taxpayers outside the district still would have to pay for access roads and improvements to sewers to accommodate the new construction. Homeowners inside the district would pay two sets of taxes - one levied by the developer and the other by elected county officials. Vote NO.

This article was posted to SuwaneeTalk with the express consent of Chuck Warbington.

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By: Chuck Warbington, PE - Executive Director, Gwinnett Village CID

As I reflect over the past week concerning our recent trip to Raleigh-Durham, North Carolina with the Gwinnett Chamber, I cannot help but get excited about the potential and opportunity for Gwinnett as we begin a concerted effort to improve the southern part of the County.

The focus of the end of the strategic trip centered around revitalization of old growth areas. In some cases, old buildings were demolished and new mixed-use developments rose in their place while in other areas, we saw where large existing tobacco warehouses were structurally maintained and internally gutted for class A office space. It was clear that this resurgence was not by accident. Several deliberate actions were common in both Raleigh and Durham that set in motion positive revitalization of areas that had in recent years been considered areas of blight and decay.

First and foremost, a champion organization was formed that brought vision and focus to these declining areas called Business Improvement Districts (BIDs). The BIDs, similar to Gwinnett's CIDs, are self-taxing districts that were formed over 15 years ago. The labor of their efforts were certainly evident with significant decreases in crime, triple digit property value increases, and a overall improved quality of life. These champions were business and property owners who organized and did more than just talk about change. The BIDs were results driven reaching out to elected officials, community leaders, and residents in the surrounding community to engage and foster full buy-in for positive change. Although early in its tenure, Gwinnett County can be encouraged that champion organizations are already in place in declining areas called Community Improvement Districts (CIDs). The CIDs are providing the leadership to begin the transformation of blighted and decaying areas.

Secondly, the start of any successful initiative begins with a plan. Each of the communities began over 15 years ago with visioning and masterplanning that included the desires of the surrounding residents while building upon the wishes of the business community. Bringing together these two entities were at times a challenge, but in the end an ultimate plan for the area was agreed upon. The success story does not end there. I was most impressed with their ability to understand how to stay committed to the plan for improvement while maintaining a flexibility to address economic and political pressures over time. This balance was uniquely and carefully navigated by the "champion" organizations (BIDs) that ultimately created what can now be clearly seen in Raleigh and Durham as a destination where residents desire to live and businesses thrive.

Finally, public funding was strategically used to spur signifigant investment in the private community. From a $10 million dollar streetscape project to construction of $43 million worth of shared parking decks for businesses, it was certainly clear that public investment is needed in declining areas to set the table for the significant private investment. The public investment was strategically spent on projects of impact meeting the goals of the overall masterplan for the area. For example, over the 15 year period, the public investment in the declining areas totaled $314 million causing just under $1 billion worth of private investment. This was a true win-win investment for the public and private investors.

I feel encouraged in the initial efforts that Gwinnett is making to transform our declining areas of the County. We are finally reaching the point of understanding that we need to address urban issues with urban solutions (not suburban solutions). These include the plans of all three CIDs, the Chamber's focus to bring in high paying jobs through Partnership Gwinnett, and the County's long range vision outlined in the 2030 plan that will be presented to the public in November. Be encouraged and be involved in the movement to transform the southern part of Gwinnett.

Links to other sites for more information: Gwinnett Village CID

This article has been posted to Suwanee Talk with the express consent of the author.

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