Plans for a new shopping center in Cedartown anchored by Publix are still moving forward, but the project faces uncertainty after Polk County commissioners again chose not to vote on participating in a key financing plan.
For the second month in a row, the Polk County Board of Commissioners did not take action on joining a tax allocation district, commonly called a TAD. Without the county’s participation, city leaders and developers must now consider other ways to fund the project.
During a February commission meeting, a motion to approve the county’s involvement in the TAD failed to move forward after it did not receive a second. Because of that, the board never took a vote. Officials later scheduled a meeting with developers to address questions and concerns about the project, but the issue was not placed on the agenda for the commission’s March meeting.
A TAD allows local governments to use future increases in property tax revenue from new development to pay for infrastructure and site preparation costs tied to the project. Instead of offering a tax break, the system directs the additional tax revenue created by the development back into the area to help pay for improvements.
City leaders in Cedartown have been working with a developer on plans for a 110,000-square-foot retail center along U.S. Route 27 near Home Depot and Walmart. The development would include a Publix grocery store along with additional retail shops and restaurants.
The Cedartown City Commission and the Polk County School District have already agreed to include their share of the increased property tax revenue in the TAD. The county remains the only local taxing authority that has not signed on.
Cedartown City Manager Edward Guzman said the developer is aware of the county’s decision and is exploring ways to keep the project moving. Without the county’s tax contribution, the city may need to adjust how the project is financed. If all three entities participated, the bonds used to pay for infrastructure could likely be repaid in about 20 years. Without the county, the repayment period could extend to 25 years or more, though state law allows TAD bonds to last up to 30 years.
Developers are hoping to begin construction this summer, meaning a final decision on financing will likely need to happen within the next few weeks.
City officials have spent more than a year trying to bring the project to Cedartown. Voters were first asked last March to approve redevelopment powers needed to create the district, but the measure failed by just 14 votes.
The proposal was placed back on the ballot in November, where it passed with a vote of 530 to 447, giving the city the authority needed to pursue the project.
City leaders say they are now reviewing options to determine how the development could proceed despite the county’s lack of participation.
