Cobb Special Economic Impact Program

Cobb economic development incentives approved after testy debate

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The Cobb Board of Commissioners on Tuesday approved economic development incentives totaling nearly $500,000 for several corporate relocations and expansions, but not without an acrimonious discussion. Bob Ott, East Cobb Restaurant Row

Last month, commissioners delayed acting on the measures, since four of them are located in District 2, and commissioner Bob Ott was absent.

They include the in-county relocation of Floor & Decor and Bio IQ, a California-based healthcare IT firm, to new corporate offices on Windy Ridge Parkway.

At a lengthy meeting Tuesday morning, Ott (in photo) outlined detailed figures showing how the county would benefit from capping building permit and business license fees for those moves.

This time last year, commissioners implemented the Special Economic Impact Program, which reduces or waives certain fees for companies that meet specific criteria for moving to or expanding in Cobb.

The county incentives are separate from tax abatements and other incentives issued by the Development Authority of Cobb County.

Floor & Decor, now based in Smyrna, wants to to add 420 jobs in its new office space. Ott’s projections said the county would net $396,640 after the incentives, which total $38,750. Those include a one-time $5,000 cap on the building permit fee.

Another business license cap incentive totalling $90,798 for construction firm Brasfield & Gorrie drew the ire of South Cobb Commissioner Lisa Cupid. She didn’t like waiving the business license fees for the proposal, which Ott said would result in a benefit of $576,000 to the county.

Brasfield & Gorrie is planning a renovation of its headquarters near SunTrust Park, adding a projected 462 new jobs.

Her objection was part of larger concerns she expressed during the meeting in trying to explain the economic benefits of the incentives to constituents at a time when the county has been struggling to adopt a budget, including a millage rate increase last year.

“It’s important we start talking dollars and cents,” she said.

View the incentive packages

When Cupid tried to link those subjects together before the Brasfield & Gorrie vote, Chairman Mike Boyce called the question on a motion to approve that was on the table, saying her comments were “outside the scope of the issue.”

When Cupid insisted they were relevant, he called the question again.

“I’m still going to ask my question,” she said.

When Cupid said she would abstain from voting, Boyce responded that “you cannot hold this board hostage.”

He asked County Attorney Deborah Dance if an abstention was allowed, and Dance replied only “if there’s a conflict.”

Cupid said she had a conflict. The Brasfield & Gorrie incentive passed 3-1, with Cupid abstaining and new commissioner Keli Gambrill voting against.

Cupid later voted for incentives for Floor & Decor and Home Depot ($733,742 benefit after $213,000 in building permit incentives, with the promise of 700 new jobs), which is seeking to expand to office space on Interstate North Parkway.

She opposed the Bio IQ package ($288,350 benefit after $55.830 in building permit caps, a projected 500 new jobs).

Commissioners also approved building permit fee caps worth $125,000 for Edison Chastain, LLC, which wants to convert warehouse property on Chastain Meadows Road, near Bells Ferry Road, for a 152,000-square-foot office building. That would bring around 500 jobs via multiple tenants, according to the Cobb Community Development Agency.

Cupid voted for that measure, which passed 4-1 (Gambrill opposing), but added that “we need to understand our numbers going forward.”

Commissioner JoAnn Birrell said she’s received a lot of e-mail about Edison Chastain, both pro and con, but said she supported the incentives.

“We’re missing the whole point of what it’s going to bring in in the long run,” she said.

Near the end of the meeting, Cupid stressed that “it’s got to get back to how we’re providing services, how we’re serving citizens.”

Boyce said in reference to the incentives that “I think we did a good thing for the county.”

 

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Cobb economic incentive proposals delayed by commissioners

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Cobb commissioner JoAnn Birrell
Cobb commissioner JoAnn Birrell

After adopting several economic incentive policies last year to spur business growth and relocation, Cobb commissioners have put on hold their approval of several proposals stemming from those changes.

Four of the five proposals, totaling more than $400,000 in county incentives, were withdrawn at Tuesday’s Cobb of Commissioners meeting because they are in District 2 and commissioner Bob Ott was absent.

But after a sometimes pointed discussion, commissioners also agreed to withhold the other incentive package on the agenda, for a planned office building in District 3 in northeast Cobb.

Last February, commissioners implemented the Special Economic Impact Program, which reduces or waives certain fees for companies that meet specific criteria for moving to or expanding in Cobb.

The companies must be in the financial, insurance and professional services sectors (including legal and accounting), as well as transportation, manufacturing and emerging technologies industries.

They also must add at least 150 jobs, invest $30 million or more in the county and pay average salaries at least 1.25 times the county average, as determined by the Georgia Department of Labor.

Qualifying companies also must agree to invest in Cobb for a minimum of 10 years or the incentives are revoked.

District 3 commissioner JoAnn Birrell and Chairman Mike Boyce were strongly in favor of a county incentive package totaling nearly $125,000 for Edison Chastain Office, LLC, which wants to build a 152,000-square-foot office building on Chastain Meadows Parkway near Bells Ferry Road.

“I think this is a good fit for this program,” Birrell said.

The incentives for Edison Chastain would cap development permit fees (proposed incentive agreement here). According to the Cobb Community Development Agency, Edison Chastain would invest $35 million and create 150 jobs once the building opens.

But commissioner Lisa Cupid of South Cobb questioned the wisdom of allowing breaks on fees for companies when the county has had major budget problems in recent years.

Community development officials estimate the break-even point for the Chastain Meadows incentives would be in 2022.

“I have grave concerns that five [economic incentive proposals] are coming up at one time,” she said, “when it might take several years to recoup [the incentive amounts]. At the same time, we’re struggling year-to-year to provide core services.”

Birrell responded that the facility eyed by Chastain Meadows was initially slated to be a warehouse. “Now it’s an office building. It’s eligible and it meets the requirements,” she said.

Boyce said such incentives will help the county enrich its tax digest, which is the best way to meet increasing service needs.

“Getting the resources depends on getting those companies to come here,” he said. “The [tax] millage rate brings in a certain amount, but [a growing] tax digest brings in even more.”

Cupid asked if the county was “doing things in a healthy way,” then tried answering her own question by saying that “I don’t see it at all.”

Replied Birrell: “If [qualifying companies] are not here, we’re not going to get the revenue at all.”

She agreed to withdraw the Edison Chastain proposal and asked interim community development director Michael Hughes for background information on the incentive program.

Floor & Decor wants to relocate its HQ to a near-vacant building at Wildwood.

Two of the four incentive proposals previously withdrawn are in Windy Ridge Parkway area near East Cobb:

Also seeking incentives are Home Depot ($213,750) for expansion in and around its headquarters in the Cumberland area, and construction firm Brasfield & Gorrie ($90,798) for renovating its new headquarters near SunTrust Park.

The county incentives are unrelated to tax abatements that the companies have sought with the Development Authority of Cobb County.

 

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