The City of Atlanta's Opportunity Zone Prospectus
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CITY OF CITY OF CITYATLANTA ATLANTAOF ATLANTA Opportunity ZoneOpportunity ProspectusOpportunity Zone Prospectus Zone Prospectus March 2019 Prepared By: Disclaimer: The use of the word “prospectus” for the purpose of the work contained herein is not to advertise about, endorse or in any other way to promote or offer specific investment opportunities in cities OR OTHERWISE. The urban investment prospectus is a template designed to help unify city leaders around a plan, to show what might occur in a city and to use as a tool to promote the city and its plans. The prospectus has been prepared for discussion purposes only and not to induce any one to enter into any agreement or transaction. For the avoidance of any doubt, the distribution of this prospectus does not constitute an offer to sell or a solicitation of an offer to buy any assets or equity securities or any investment of any kind. 2 TABLE OF CONTENTS Executive Summary Page 4 City of Atlanta: By the Numbers Page 8 City of Atlanta: By the Assets Page 13 City of Atlanta: By the Zones Page 21 and Investable Opportunities 3 Mayor Keisha Lance Bottoms Greetings: The City of Atlanta is seeking to leverage the Federal Opportunity Zone Program as an important tool to support the development of jobs, affordable housing and economic vitality. As the first federal community and economic development tool since the launch of the New Markets Tax Credits program, this initiative presents us with an opportunity to drive long-term private investment into low-income communities. The City of Atlanta is poised to use this tax incentive to make an impact on 26 of our most underserved and disinvested neighborhoods. We are committed to working with our economic development partners in the region— including The Arthur M. Blank Family Foundation, Central Atlanta Progress, Metro Atlanta Chamber, Georgia Power, the Community Foundation for Greater Atlanta, and the Atlanta Regional Commission—to ensure that the Federal Opportunity Zones program strengthens our businesses and communities. Together, we will take another meaningful step towards achieving our vision of One Atlanta, while elevating our neighborhoods and building new and sustainable pathways to inclusiveness. Sincerely, Keisha Lance Bottoms CITY OF ATLANTA’S OPPORTUNITY ZONES The City of Atlanta has 26 Qualified Opportunity Zones ZONE ZONE RESIDENTS JOBS 85,238 92,000 18.6% of total 10.5% of total City Population City Jobs Source: Invest Atlanta, Economic Innovation Group, EMSI 2019-Q1 5 INCENTIVES OFFERED BY THE OPPORTUNITY ZONE PROGRAM A temporary deferral of inclusion A step-up in basis for capital gains A permanent exclusion from taxable intaxableincomeforcapitalgains reinvested in an Opportunity Fund. +10% income of capital gains from the sale or reinvested into an Opportunity if the investment is held for at least 5 exchange of an investment in an Fund. years; an additional 5% if held for at least Opportunity Fund if the investment is held 7years. foratleast10years* Source: Economic Innovation Group *This exclusion only applies to gains accrued after an investment in an Opportunity Fund 6 OTHER CITY AND LOCAL DEVELOPMENT INCENTIVES Financial Bonds Workforce Site Selection Home Incentives Training Support Ownership • Tax Incremenet Financing • Housing Opportunity Bonds WorkSource Atlanta • New Markets Tax Credits • • Real Estate Consultation • Down Payment Assistance • Lease Purchase Bonds • EB5 Regional Center • Georgia Quickstart • Site and Building Search • Lease Purchase Financing (TRIO) • 501c3 Bonds • Social Impact Fund Assistance • Owner-Occupied Rehab • Industrial Revenue Bonds • Economic Opportunity Fund • Permitting Assistance • iMAP Down Payment Assistance • Housing Revenue Bonds • EOF BRE • Zoning Advocacy Program • Atlanta BeltLine Affordable Housing Trust Fund Business Loans Ta x I n ce n t i ve s International Trade Support • Small Business Loans • Opportunity Zones Development Services Homebuyer Loans Job Tax Credit • • • Trade Missions Services Developer Loans Quality Job Tax • • Export Trade Counseling and Atlanta Leverage Loan Credit • • Advocacy Assistance • Support Fund Client Service • International Trade Representation • • Transit-Focused Fund Assessment 7 CITYCITY OFOF CITYATLANTAATLANTA OF ATLANTA Opportunity ZoneOpportunity Prospectus Zone Prospectus By the Numbers 8 CITY OF ATLANTA’S THRIVING ECONOMY People: City of Atlanta Population (2018): 459,600 Population Increase (2017-2018) +10,100 Largest single-year estimated population increase since the Great Recession. Pop. Change (since 2010): +9.4% Square Miles: 132 Economy: Median Household Income: $49,398 Unemployment Rate: 5.2% Jobs in Atlanta: 870,436 Job Growth (2013-2018): +14.1% 9 Source: Atlanta Regional Commission, Georgia Power (EMSI 2019-Q1) CITY OF ATLANTA’S CONSTRUCTION TRENDS Housing Unit Building Permits, 2008-2017 Value of Construction Permitted, FY2011-FY2018 in the City of Atlanta Including commercial and residential permits, in the City of Atlanta 9000 8000 7000 6000 5000 4000 Units 3000 2000 1000 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total Housing Unit Building Permits Units in Single-Family Structures Units in All Multi-Family Structures 10 Source: SOCDS Building Permits Database, City of Atlanta Department of City Planning CITY OF ATLANTA’S EMPLOYMENT PROFILE Impressive growth in the Finance, Insurance and Information Sectors along with Transportation and Warehousing industries. City of Atlanta’s Top Ten Industries: 2018 - 2023 2018 - 2023 2013 2018 2023 2013–2018, 2013-2018, Description # Growth, % Growth, Jobs Jobs Jobs # Growth % Growth projected projected Government 97,055 96,325 97,192 (730) -0.8% 867 0.9% Professional, Scientific, and Technical 81,607 95,040 104,261 9.7% Services 13,433 16.5% 9,222 Health Care and Social Assistance 78,035 91,631 104,627 13,597 17.4% 12,996 14.2% Administrative and Support and Waste Management and Remediation 69,537 81,709 88,406 12,173 17.5% 6,697 8.2% Services Accommodation and Food Services 68,958 78,362 83,449 9,404 13.6% 5,087 6.5% Retail Trade 53,072 57,987 59,089 4,915 9.3% 1,102 1.9% Finance and Insurance 48,325 57,680 63,075 9,355 19.4% 5,395 9.4% Information 42,380 51,329 58,421 8,949 21.1% 7,093 13.8% Transportation and Warehousing 32,585 41,686 44,732 9,100 27.9% 3,047 7.3% Educational Services 30,800 32,222 34,831 1,421 4.6% 2,610 8.1% 11 Source: EMSI 2019-Q1 CITY OF ATLANTA’S LARGEST PRIVATE EMPLOYERS Employment Company Submarket (Within the City) 1 Northside Hospital North Atlanta 8,000 2 Georgia Institute of Technology CBD - Midtown 6,800 Northwest 3Home Depot Inc. Atlanta 5,500 4 Coca-Cola Co. CBD - Downtown 5,000 Grady Health System/Memorial 5 Hospital CBD - Downtown 5,000 6 CDC/Centers for Disease Control Northeast Atlanta 4,500 7 Emory University Hospital Northeast Atlanta 3,676 8 Georgia State University CBD - Downtown 3,500 9 Piedmont Hospital CBD - Midtown 3,200 10 Turner Broadcasting System Inc. CBD - Midtown 3,000 Emory University Hospital 11 Midtown CBD - Downtown 2,675 Opportunity Zones Atlanta Beltline Source: EMSI 2019-Q1 12 CITY OF CITYATLANTA OF ATLANTA Opportunity Zone Prospectus By the Assets 13 ATLANTA LEADS THE WAY Atlantaisthebusiness center of the Southeast with a low cost of doing business, high quality of life and affordability, and attractive assets that include a talented workforce, leading universities and the world’s most traveled airport. #1 #1 #1 Moving Destination Most Affordable Most Traveled Airport, for 9 Consecutive Years Big City Hartsfield-Jackson International Penske Truck Rental, WalletHub, 2018 2011-2019 Civil Aviation Data, 2018 #1 #2 #1 Metro Area for Lowest Cost Metro Area for Economic State for Business of Doing Business Growth Potential Climate among the nation’s 10 largest metros Among Large Metros (Georgia) KPMG, 2016 Business Facilities, 2018 Site Selection, 2013-2018 14 METRO ATLANTA’S FORTUNE 500 HEADQUARTERS 15 Source: FORTUNE, May 21, 2018 CORPORATE INNOVATION CENTERS Home to 25+ Corporate Innovation Centers 16 TECH & STARTUP TALENT Atlanta is home to 25+ incubators, accelerators, and #1 #1 coworking spaces and over 1,000 tech start-ups U.S. City for Metro Area for job start-ups that openings for STEM isn’t New York graduates per or San capita Francisco WalletHub, 2017 FitSmallBusiness.com, 2018 #2 #3 Next big tech hub City poised to that’s still become tomorrow’s affordable tech mecca Realtor.com, 2017 Forbes, 2017 Top 10 Tech Startup Ecosystems Nationally Startup Genome, “2017 Global Startup Source: Switchyards Downtown Club Ecosystem Report,” May 1, 2017 17 EDUCATION AND WORKFORCE INVESTMENT More than 290,000 students are enrolled in the 64 two and four-year colleges and universities in the Atlanta / Athens area. • Over 37 percent of metro Atlanta’s workforce holds at least a bachelor’s degree, compared to the national average of 32 percent (U.S. Census Bureau, American Community Survey 2017) • Georgia Tech produces more engineers each year than Stanford, Harvard, and MIT combined (Metro Atlanta Chamber) Georgia State • #2 – Metro Area for quality of engineering universities (WalletHub, 2018) School for bachelor’s degrees awarded to African Americans • #2 – City for professional opportunities (WalletHub, 2018) #1 • 73% – Retention rate of college graduates from 2 and 4-year Georgia Tech institutions (Brookings, 2016) School for engineering bachelor’s #1 degrees awarded to African • WorkSource Atlanta: collaborates with business leaders for American and women students the recruitment and development of their labor needs, and Spelman College provides resources for sustainable employment Historically Black College and opportunities #1 University (HBCU) in the U.S. 18 MINORITY AND WOMEN-OWNED BUSINESSES • Small, Disadvantaged, Female, and Minority owned businesses throughout Atlanta continue to blaze trails in corporate, non-profit and government roles, enriching our city in countless ways. • According to the National Association of Women Business Owners, Georgia ranks number one in percent growth in number, employment and sales for female-owned firms.