2 Development Authority • 2008 Annual Report

Letter from the Board Chair Letter from the President

Every day, ADA works to attract employers and investment to the city. ADA’s board approved more It is an honor to serve as the president of ADA and to work with our talented staff. I would like thank our senior team for their than $1 billion in business transactions in 2008. While net job numbers were down citywide, ADA was leadership and commitment to our mission: successful in adding 700 new jobs. More foreign firms had their eyes on Atlanta than ever before, with the life science and digital media sectors drawing the most interest. Tom DiGiovanni, Chief Financial Officer

In Atlanta we are proud to be a national best practice model for tax increment financing, or tax allocation Ernestine Garey, Managing Director of Housing Finance districts as they are called here in . ADA’s director of TADs is the co-chair of the Council Veronica Jones, General Counsel of Development Finance Agencies’ National TIF Coalition and is actively participating in the national Sonya Moste, Director of Marketing & Public Relations conversation to refine this valuable economic development tool. Cheryl Strickland, Managing Director of Tax Allocation Districts

Unfortunately, Atlanta is among the top cities nationwide for foreclosures, which have negatively impacted Charles Whatley, Director of Commerce & Entrepreneurship home values and destabilized neighborhoods all across our city. ADA is an active member of a new citywide consortium of affordable housing advocates working to address the inventory of foreclosed We thank our employees for their focus every day on moving the city’s economic development goals forward. We would also like to homes and implement the national Neighborhood Stabilization Plan. thank our board members for their commitment to our city and their continued leadership and good counsel. We also appreciate the support of the Atlanta City Council. Together, we have faced the challenges of 2008 and accomplished a lot. Economic development is vital for any healthy city. Our five-year goals, developed in 2004, called for . adding 60,000 jobs and 24,000 airport-related jobs; adding 10,000 new units of workforce housing; We recognize the effective relationships we have with our economic development partners, more than 50 organizations. We thank our adding 2,000 acres of parks and greenspace; improving the high-school graduation rate to 72 percent; partners for their collaboration and commitment to achieving the vision and goals of the city’s New Century Economic Development Plan. decreasing crime to 5,600 crimes per 100,000 residents; and growing property values by $26 billion. The New Century Economic Development Plan continues to be our framework and report card for economic development. ’ results have been very encouraging, with a graduation rate that is now 72 percent, The remainder of this report explains the results of this year. Significant highlights include: up from 57 percent in 2004. Each high school graduate creates a total societal benefit of more than $200,000, from higher tax revenues (based on higher salaries) and lower spending on public health, • Marketing and promotion of the city expanding locally, nationally and internationally, with tangible results crime-related costs, and other temporary assistance programs. We are proud of Dr. Beverly Hall for • The successful statewide referendum allowing school districts to participate in tax allocation districts being named Georgia’s 2009 Superintendent of the Year and one of four finalists for 2009 National Superintendent of the Year. • The HOME Atlanta down-payment program, which helped 173 homebuyers purchase homes in the city • The 2008 Westside TAD bonds, which funded five projects downtown and provided seed funding for the Center Crime is another key indicator of economic development. Atlanta today has 1,786 sworn police officer for Civil and Human Rights positions, a 20 percent increase from 2001. The violent crime rate is down 38 percent since 2002. In • The steady progress of multi-year projects like the Atlanta BeltLine and the redevelopment of Fort McPherson fact, Atlanta has gone from having the second-highest crime rate in the U.S. to number 15 on the list. The • International business development missions to India and China city of Atlanta is safer today than it was in the 1970s, but even one crime is one too many. It is my goal to increase our police force to 2,000 by the end of 2009 and bring the crime numbers down even further. In November, voters statewide affirmed tax allocation districts as an effective economic development tool for cities and counties,

preserving a school district’s option to participate in tax allocation districts. Within the city, the amendment passed in 84 percent ADA’s mission is critical. I would like to recognize our 2008 Board of Directors and thank them for their of precincts – 63 percent of city residents voted in support of the amendment. Unfortunately, some additional legal challenges are commitment to economic development in the city of Atlanta. My fellow board members are: temporarily hindering our ability to move forward. We are committed to the successful resolution of these matters.

Joe Brown, Centerline Capital Group Large multi-year projects like the Atlanta BeltLine and the redevelopment of Fort McPherson moved steadily forward in 2008. The Atlanta LaChandra Butler Burks, APS Board Member Beltline is already changing how Atlanta looks, and McPherson will be a major economic catalyst in southwest Atlanta and our region. Anna Foote, The Coca-Cola Family Federal Credit Union, effective December 2008 Two events in particular caught my attention in December and are molding our approach to 2009. The U.S. Treasury signaled to the Emma Darnell, Fulton County Commissioner country that it would use all the tools at its disposal to combat our recession. At the Midtown Alliance annual meeting, the CEO of The Carlton Eccles, retired Coca-Cola Company challenged us to focus on what works, expand partnerships and push forward with resolve. In 2009, we will be Tracy Hankin, WebMD investing in what works, using all the economic development tools available to us and strengthening our partnerships. Jim Maddox, Atlanta City Council Member We thank you for your interest in our city and encourage you to join us as we push forward in 2009. Barney Simms, Atlanta Housing Authority, retired November 2008 Alex Wan, Optima, Inc. Sincerely, As my tenure as Mayor of Atlanta and Chair of ADA nears its close, it is my personal goal to provide the kind of leadership that will allow ADA to fulfill its mission and leave a legacy of which we can all be proud.

Peggy McCormick, President Sincerely,

Shirley Franklin, Mayor 4 Atlanta Development Authority • 2008 Annual Report

Economic Development Strategies The BeltLine Fort McPherson

1. Build the foundation for sustainable job growth. Guided by Atlanta BeltLine, Inc., the BeltLine took significant With the guidance of the McPherson Planning Local In 2008, ADA: steps in building the infrastructure needed to implement this Redevelopment Authority, the state of Georgia is seeking major project. Ground was broken on the Historic Fourth Ward conveyance from the U.S. Army in order to repurpose almost • Preserved TADs as an economic development tool by participating in statewide coalition supporting a Park, and the first segment of BeltLine Trail at West End opened one-third of the 500-acre site in southwest Atlanta as a referendum to allow school districts to participate in TADs. to tremendous excitement and celebration in the community. In bioscience center. This center is envisioned as a facility for • Issued $80 million in BeltLine TAD bonds and $65 million in Westside TAD bonds. October, the first BeltLine TAD bonds were sold, which sustained interdisciplinary research and technology transfer, eventually momentum for the transit and affordable housing components containing more than one million square feet of office and • Created a life science committee and joined the Innovation Crescent Regional Partnership. of the project. With the bond sale, ABI finalized the acquisition research space and 2,000 units of high-density, mixed-income of the 4.5-mile section of transit right-of-way in the northeast residential space in a campus-style environment. The center 2. Prepare for the influx of residents and development, and ensure that Atlanta’s infrastructure will support the city’s growth. corridor and financed the BeltLine Affordable Housing Trust Fund would be developed in partnership with public and private In 2008: with $8.8 million in bond proceeds. ABI also embarked upon Georgia research institutions, the Centers for Disease Control, • The BeltLine received major TAD funding and opened its first trail segment a cooperative partnership with MARTA to complete the first and private investors. Construction could begin after the Army phase of the Environmental Impact Study for the entire 22-mile vacates the fort, planned for 2011. • ADA helped the private market create affordable intown housing transit corridor, and is looking forward to expanding the BeltLine- MARTA relationship in 2009. 3. Make the city of Atlanta more livable, providing safe neighborhoods with excellent public schools, parks, commercial corridors and improved quality of life. In 2008, ADA: Parks and Greenspace • Prepared an application for the Neighborhood Stabilization Program, a new HUD initiative. Recent groundbreakings and acquisitions: • Created four commercial corridor TADs. • Historic Fourth Ward Park groundbreaking • Allocated significant public funding from the Westside TAD to the Center for Civil and Human Rights. • Vine City Park groundbreaking and expansion, funded in part through the Westside TAD Neighborhood Fund • Helped to eradicate homelessness through the Homeless Opportunity Fund. • Capitol Gateway Park expansion along Memorial Drive near Oakland Park Cemetery.

This linear park will eventually connect Oakland to the state capitol. • Lake Claire Park expansion • Old Adamsville Park expansion • Four Corners Park expansion

New Century Economic Development Plan Dashboard In addition, the city of Atlanta Greenway Acquisition Project was completed. This $25 million program funded the acquisition and protection of properties adjacent to selected rivers and creeks within the Metro Atlanta area. These greenway properties will forever be maintained in a natural, undisturbed state. Results EDP Goals Base* Best in Class Goals 2005 2006 2007 2008 4 Year Total

Public High School 57% 72% 72% 71% 68% 72% 72% Historic Fourth Ward Park Graduation Rate 1 Airport Jobs 2 105,000 add 24,000 13,340 NA NA NA NA Not yet Property values 3 $42B add $26B $3B $5B $8B NA certified 8,619 8,619 Crime per 100,000 residents 4 10,800 reduce to 5,600 7,929 7,916 8,543 estimate estimate Jobs Growth 5 406,000 add 60,000 5,715 7,512 -3,227 Available 2009 NA Workforce housing units created 1,300/yr add 10,000 1,632 804 1,085 1,009 4,530 with City incentives 6 Acres of Parks & Greenspace 7 3,400 add 1,900 92 226 107 92 517

Data Sources: 1. Atlanta Public Schools Office of Communications, as of December 9, 2008 5. U.S. Census Bureau, QWI Online, accessed December 9, 2008 --http://lehd.did.census. 2. HJAIA Economic Impact Report 2005. The airport will conduct another economic impact gov/led/datatools/qwiapp.html study later in 2009. 6. Workforce Housing Plan Production Database, City of Atlanta Bureau of Housing and ADA 3. Georgia Department of Revenue, Tax Digest Consolidated Summary – http://www.etax.dor. 7. City of Atlanta departments – Watershed and Parks ga.gov/PTD/cds/csheets/menu.aspx *Baseline Years: Jobs (2004), Airport Jobs (2003), Property Value (2003), Workforce Housing 4. FBI for years 2005-2007. FBI 2008 numbers not yet released. Source for 2008 estimate: (2004), Crime (2003), HS Graduation Rate (2002), City of Atlanta COBRA report from 12/31/08. Population estimate used for city in 2008 was Parks (2004) 535,753. 6 Atlanta Development Authority • 2008 Annual Report

Commerce and Entrepreneurship Successes

ADA’s business attraction efforts generated 66 serious investment leads for the city of Atlanta. Of these, 10 were closed, creating more Kemira National Health Museum than 700 new jobs. We concluded 2008 with 49 leads still active. We focused heavily on two industries: digital media and life sciences. A chemical company from Finland will open a research lab at With the support of the American Medical Association, this virtual Nearly a third of our leads fell under these two categories. Technology Enterprise Park in adjacent to museum launched a nationwide search for a bricks-and-mortar , employing 80 workers with an annual payroll of location. Atlanta won, beating out Philadelphia, New York, Boston, San Francisco, Chicago and Washington, D.C. The museum The leads are broken down by industry category as follows: about $5.2 million. They leased 37,000 square feet of space, bringing TEP Building 1 to its full occupancy. They expect to be expects to locate in Downtown Atlanta near other significant tourist Industry # Leads # Wins operational by the end of 2009. attractions. Governor Perdue was personally involved, as well as Life Science 11 2 the Blank Foundation, in closing the deal. The museum still needs Office/Retail 11 1 Toyoko Inn $250 million and is in the process of raising these funds. It will Digital Entertainment & Media 7 1 A Japanese hotel chain with close to 200 locations in Japan employ up to 200 people when fully operational. Manufacturing 7 1 purchased land on Forsyth Street in Downtown Atlanta. They Hotel/Tourism 6 2 propose to build a business-budget hotel with up to 700 rooms. UTI Headquarters 5 - Once completed, it will be a 40-story building, and the sixth- This distribution company leased 80,000 square feet of space Financial Institutions 4 - largest hotel in Atlanta. Projected capital investment will be more in the newly constructed AMB facility near Southside Industrial Park. The site is the first Industrial Urban Enterprise Zone created Call Centers/Data Centers 4 - than $55 million. They will create 100 jobs and bring in $2.4 million in annual payroll. in Atlanta in several years. UTI is projected to add 80 jobs with Software 4 1 annual payroll of about $4 million. Distribution 3 1 Studios Government 1 1 Tyler Perry purchased the former Delta headquarters facility near Nuclear Regulatory Commission Other 3 - Greenbrier Mall in southwest Atlanta and renovated it into a This federal agency has signed a lease for roughly 100,000 studio for television and film production. This is part of a growing square feet of space in in Downtown Atlanta. It On the life science front, ADA created an advisory committee Global Commerce digital media and entertainment sector in Atlanta, joining CNN, will add approximately 100 highly skilled federal government jobs comprising leaders from industry, service providers, higher education In 2008, ADA’s Commerce and Entrepreneurship department Turner and Savannah College of Art and Design in forming a with an annual payroll of about $7 million. and our economic development partners. ADA became a founding worked with international companies considering investments in the robust cluster. partner of the Innovation Crescent Regional Partnership, which city of Atlanta from 13 countries, including China, Brazil, Germany, promotes the area between Atlanta and Athens as a life science Israel, England, Finland, France, India, Ireland, Japan, Korea and corridor. the Netherlands. As a result, we celebrated two foreign wins: Toyoko Small Business: Fostering an Entrepreneurial Spirit Inn and Kemira. , our quarterly e-newsletter with a distribution of It was a challenging year for financing start-ups and small business expansions. Small businesses are the foundation of a healthy almost 50,000 recipients, showcased Atlanta’s many competitive The Commerce and Entrepreneurship department participated economy. In fact, more than 80 percent of all jobs in the city of Atlanta are in small business. ADA received 50 applications for advantages and helped to generate business relocation leads. in a mission to China in December 2008 to form a collaborative loan assistance in 2008. Unfortunately, due to the national credit crisis, two-thirds of our loan applicants either withdrew their applications alliance between ADA, the U.S.-China International Investment or were declined because they were unable to pull together a viable finance package. For the third year, a business development delegation from Association and several Chinese cities. The team pledged to enable Atlanta led by Mayor Franklin attended the spring conference of the exchange of information and best practices between academia Despite the challenging environment, ADA helped finance 12 small business start-ups and expansions. Loan funds totaling $887,000 the International Council of Shopping Centers, the premier retail and the private sector regarding innovation, commercialization of were leveraged with $3.9 million dollars from other sources for a total investment of $4.8 million. development and leasing conference in the U.S. technologies and trade promotion. Loan recipients: At the BIO International 2008 show in San Diego, ADA exhibited ADA partnered with many organizations in its business attraction • 404 Custom Motorsport, Inc. – 884 Murphy Avenue • Merritt Masterpieces, Inc – 171 Auburn Avenue inside the Georgia Pavilion. More than 20,000 people attended the efforts, including the Metro Atlanta Chamber of Commerce, the • Eat At Noon – 1080 Peachtree Street • Phat Phashuns, Inc – 3083 Martin Luther King Jr. Drive conference. State of Georgia, Georgia Power and Central Atlanta Progress. • Forever Young & Healthy – 171 Auburn Avenue • Space Atl, LLC – 1310-A White Street • Le Creatif Design – 480 John Wesley Dobbs Avenue • Sweet Auburn Bistro – 171 Auburn Avenue ADA co-hosted eight senior executives from U.S. and foreign ADA partnered with the DeKalb County Department of Economic • Lord, Jean-Charles & Lord – 3455 Peachtree Street • Utopia Trading, Inc – 860 Hank Aaron Boulevard companies at the Atlanta Championship Invitational, a partnership Development in hosting the International Economic Development • Melissa Preston CPA – 1040 Boulevard SE • Westside Storage LLC – 1310 White Street led by the Metro Atlanta Chamber of Commerce and several other Council’s annual conference in 2008. Atlanta hosted more ADA partnered with the Small Business Administration on its e200 initiative, an innovative executive training program, to enable promising chambers and development authorities. The event included an than 1,300 domestic and international economic development firms to grow into companies that can have a significant impact on the inner-city economy of Atlanta. Fourteen small-business CEOs from exclusive welcome dinner and tickets to the PGA Tour at East Lake. professionals. ADA designed various education tours for the Atlanta’s inner city participated. attendees (behind the scenes at the airport, Georgia Tech’s Technology Square) and organized the Cross Borders Connection ADA was allocated $2 million in Empowerment Funds from ACoRA, the management entity responsible for marketing the Renewal Reception, where several local international consulates and bi- Community federal tax incentives. These funds are designed to stimulate investment in the Atlanta Empowerment Zone around the Old national chambers of commerce participated. Fourth Ward and Auburn Avenue corridor. This will become a new program for ADA in 2009. 8 Atlanta Development Authority • 2008 Annual Report

Homeownership Tax Allocation District Activity New Markets Tax Credits

As part of the Housing Opportunity Bond Fund’s HOME Atlanta program, ADA provided down-payment assistance to 173 families The city closed on the 2008 Westside TAD bonds, in process In partnership with Central Atlanta Progress, ADA applied for who were able to purchase an affordable home in the city limits. The average home price was $165,000 and the average income for over two years, in December. This bond issue provided seed and won a $60 million allocation in new markets tax credits of the purchaser was $46,000. These results are remarkable given the challenges in the second half of 2008 with the crash of the funding for the widely anticipated Center for Civil and Human from the U.S. Treasury in 2007. The team applied again in 2008 residential and credit markets. The real estate community tells us that this program has been instrumental in allowing homebuyers to Rights, gap funding for five development projects downtown and and was awarded another $20 million. Combined, this $80 move forward in the face of limited liquidity. funds for five public infrastructure projects in the downtown area. million tax credit allocation will encourage development and new This contributed to $429 million in new development projects in capital investment in Downtown Atlanta and in the city’s four new The BeltLine Affordable Housing Trust Fund received its first installment of $8.8 million in fall 2008. There are currently ten new condo Downtown, around and in Castleberry commercial TADs. or townhouse developments along the BeltLine. A component of this fund will offer down-payment assistance to qualifying buyers Hill. Collectively, these projects will add 411 residential units, purchasing new-construction units. Incentives and low-interest loans will also be available to developers who invest in the BeltLine 195,000 square feet of retail/entertainment space, 173,000 Perry-Bolton TAD Update area. ADA held its first BeltLine Developer’s Day in 2008 and attracted 80 area developers. square feet of office space and 237 hotel rooms. Projects include: • Center for Civil and Human Rights (LEED certified) The Perry-Bolton TAD was established in 2002 to facilitate the Homeless Opportunity Fund • Technology Enterprise Park revitalization of more than 500 acres of under-developed real • 45 Allen Plaza estate in northwest Atlanta, including the blighted Perry Homes In 2005, $22 million was allocated to create permanent supportive housing units as part of a larger citywide plan to eradicate • Castleberry Point in Castleberry Hill public housing development. It has been our expectation that the homelessness in Atlanta. These funds are an integral part of United Way’s Blueprint to End Homelessness in Atlanta in Ten Years, • Northside Plaza first bond issue in this TAD would spur the creation of mixed- which is a plan commissioned by Mayor Shirley Franklin that reflects national best practices as well as consensus across the metro • Historic Westside Village income housing; retail, including a much needed grocery store; a region’s business and civic communities. new fire station no. 28; neighborhood commercial development; With every Westside TAD bond closing, 20 percent of bond and continued revitalization in West Highlands. In 2008, ADA funded six projects that received grant dollars totaling nearly $6.3 million. This helped to leverage another $44 proceeds generated by downtown projects are allocated to the million from other sources. Once completed, these projects will add 609 affordable residential units, with 254 of them set aside for Westside TAD Neighborhood Fund, which incentivizes projects We have encountered a series of hurdles in our efforts to issue permanent supportive housing for homeless individuals or families. Since the program’s inception, 95 percent of the $22 million has that improve the quality of life in Vine City and English Avenue. these bonds, including the revision of a previously unworkable been committed. This grant program enables developers to build or renovate existing buildings. In 2008, we celebrated the following Neighborhood Fund- affordable housing requirement, BeltLine TAD litigation and sponsored activities: the related constitutional amendment, and, most recently, the unfolding of significant events in the financial markets and the • Groundbreaking for the Vine City Park nation’s economy. • Opening of the Fulton County Neighborhood Union Health Center We have determined that the most feasible strategy for marketing • Refurbishment of 47 homes by Rebuilding and selling the Perry-Bolton TAD bonds is to wait until after the Together Atlanta 2009 legislative session, when we anticipate Atlanta Public Schools’ tax increment will be available. After reassessing both The Public Purpose Project Fund, into which 10 percent of bond the capital and real estate markets, we hope to be in a better proceeds generated by projects around Centennial Olympic position at that time to fund all initial applicants, including those Park is deposited, was established to provide funding for public who were unable to move forward in a previously proposed 2008 projects that do not generate tax revenue in and of themselves bond issue. Those applicants include: but add value to the district as a whole. Projects anticipated to receive funding include: • West Highlands (1,297 residential units) • Bolton Village (14,500 square feet of retail,14,500 Homeless Opportunity Fund Production Dashboard • Andrew Young tribute in Walton Spring Park square feet of office space) • West Peachtree Place two-way conversion • Bolton Crossing (40,000 square feet of restaurant • Downtown traffic signal upgrades Project Name Developer Service Provider Target Population # Affordable Units # Homeless Units Grant Amount* Total Construction Cost and retail space) • Fire Station no. 28 (including police mini-precinct and RHA Housing Inc Grandmothers raising ADA is also pleased to report that in December, the Fulton Gates Park Crossing Achor Center 332 41 $1.6 million $33.5 million community room) I & II grandkids County Board of Commissioners amended its original consent • Moores Mill Village redevelopment (-anchored to the Westside TAD by extending its participation until 2018. Fulton Co Dept mixed-use project) City of Refuge City of Refuge Inc Women & children 132 132 $1.5 million $1.8 million This ensures the future viability of this essential tool and the Human Services • Perry Village (390 apartments) continued revitalization of areas where investment is still needed, Community Concerns Community Vineyard Court Families 32 32 $1.4 million $1.8 million including Vine City, English Avenue, South Central Business Inc Friendship Inc District, and Castleberry Hill. There are still significant Quest Village Quest, 35 Inc Quest, 35 Inc Men & women 20 18 $800,000 $1.2 million redevelopment opportunities in these areas where challenging The Life Exchange conditions persist. Fulton County’s future participation in the TAD Gilgal Gilgal Women 26 26 $709,000 $859,000 Center is essential to ensure continued redevelopment and revitalization. Ambling Develop- Community Friend- Ashton Browns Mill Men & women 100 5 $200,000 $11.4 million ment ship Inc

*program funded by 2005 Homeless Opportunity Bond issue backed by car rental tax

Multifamily Projects

Four multifamily projects have been postponed to 2009 or 2010 because of the 2008 credits crisis. Combined, these projects would have added almost 900 units of residential housing. TotalTotal Asset Asset Trend Trend NetNet Asset Asset Trend Trend RevenueRevenue Trend Trend

250,000,000250,000,000 35,000,00035,000,000 $204,185,000$204,185,000 $32,300,000$32,300,000 $9,449,000$9,449,000 30,000,000 12/31/2005 30,000,000 10 200,000,000200,000,000 $151,876,000$151,876,000 12/31/2005 $13,300,000$13,300,000 $5,590,000$5,590,000 25,000,00025,000,000 Atlanta Development Authority • 2008 Annual Report $110,838,000$110,838,000 $10,400,000$10,400,000 150,000,000150,000,000 6/30/20066/30/2006 $16,082,000$16,082,000 20,000,00020,000,000 $111,055,000$111,055,000 $22,600,000$22,600,000 $17,376,000$17,376,000 15,000,000 100,000,000 15,000,000 100,000,000 6/30/20076/30/2007 Awards and Accolades Financial Information (FYE June 30, 2008) 10,000,00010,000,000 50,000,000 50,000,000 6/30/20086/30/2008 5,000,0005,000,000 Oakland Park Condos, LEED Certified ADA’s finances are well positioned to withstand the current challenging economic environment. ADA operates almost 60 separate Located in the Eastside TAD in Downtown Atlanta accounting entities with total consolidated revenue of more than $32 million for fiscal year ending June 30, 2008. 00 12/31/200512/31/2005 6/30/20066/30/2006 6/30/20076/30/2007 6/30/20086/30/2008 00 5,000,0005,000,000 10,000,00010,000,000 15,000,00015,000,000 20,000,00020,000,000 12/31/200512/31/2005 6/30/2006*6/30/2006* 6/30/20076/30/2007 6/30/20086/30/2008 Downtown Design Award from Central Atlanta Progress According to a recently competed financial audit by Mauldin & Jenkins, as of June 30, 2008, ADA’s total assets were more than $204 *6*6 months, months, short short year year The (formerly the Winecoff Hotel) million. Its liabilities were just shy of $195 million. Located in the Eastside TAD in Downtown Atlanta Downtown Design Award from Central Atlanta Progress The below graphs show consolidated figures for ADA and all its sub entities and operating units. Total Asset Trend Net Asset Trend Revenue Trend

250,000,000 35,000,000 TWELVE Centennial Place $204,185,000 Gross Revenue$32,300,000 by Activity, YE 6/30/07 Gross Revenue by Activity, YE 6/30/08 TotalTotal AssetTotal Asset AssetTrend Trend Trend AssetAsset by by Operating OperatingNetNet AssetNet AssetUnit, Unit, AssetTrend as Trendas of ofTrend 6/30/08 6/30/08$9,449,000 RevenueRevenueRevenue Trend TrendGross Trend Revenue by Activity, YE 6/30/07 Gross Revenue by Activity, YE 6/30/08 Located in the Westside TAD 30,000,000 TotalTotal Revenue: Revenue: $13.3 $13.3 Million Million TotalTotal Revenue: Revenue: $32.3 $32.3 Million Million 12/31/2005 2008 Superior Design Magnolia Award for Excellence in Housing 200,000,000 250,000,000250,000,000250,000,000 $151,876,000 35,000,00035,000,00035,000,000 $13,300,000 $204,185,000$204,185,000$204,185,000 5%5% $5,590,000 4%4% $32,300,000$32,300,000$32,300,000 $9,449,00025,000,000 $9,449,000$9,449,000 11%11% Single-familySingle-family Real Real Estate Estate - 5%- 5% $110,838,000 30,000,00030,000,00030,000,000 $10,400,000 2%2% 25%25%12/31/2005 MultifamilyMultifamily Real Real Estate Estate - 11%- 11% 5%5% 150,000,000 200,000,000200,000,000200,000,000 $151,876,000$151,876,000$151,876,0006/30/2006 12/31/200512/31/2005 $16,082,000 $13,300,000 100th Eastside TAD Affordable Housing Closing 20,000,000 $13,300,000$13,300,000 6% RealReal Estate Estate Portfolio$5,590,000 Portfolio$5,590,000$5,590,000 - 25%- 25% 54%54% 6% 25%25% 25,000,000 43%43% MultifamilyMultifamily Real Real Estate Estate - 6%- 6% Oakland Park condo located on Memorial Drive $111,055,000 25,000,00025,000,000 5%5% $22,600,000 GrantsGrants - 5%- 5% $110,838,000$110,838,000$110,838,000 $17,376,000 $10,400,000 6/30/2006 15,000,000 $10,400,000$10,400,000 7% Purchased by a teacher 100,000,000 150,000,000150,000,000150,000,000 6/30/20066/30/2006 DowntownDowntown Development $16,082,000Development$16,082,000$16,082,000 Authority Authority - 14%- 14% 7% 6/30/2007 20,000,00020,000,00020,000,000 GrantsGrants - 7%- 7% DebtDebt Issuance Issuance and and Servicing Servicing - 19%- 19% $111,055,000$111,055,000$111,055,000 $22,600,000$22,600,000$22,600,000 Atlanta Beltline Inc.$17,376,000 - 31%10,000,000 Atlanta Beltline$17,376,000$17,376,000 Inc. - 31% 15,000,000 Debt Issuance and Servicing -7% Columbia Tower 100,000,000 15,000,00015,000,000 7% Debt Issuance and Servicing -7% 50,000,000 100,000,000100,000,000 6/30/2008 6/30/20076/30/20076/30/2007 BeltLineBeltLine Project Project - 7%- 7% 7% 5,000,000 19% Located in the Capitol Gateway community on Memorial Drive UrbanUrban Residential Residential Finance Finance Authority Authority - 25%- 25% 19% 10,000,00010,000,00010,000,000 Inter-Gov'tInter-Gov't Agreements Agreements - 7%- 7% CommercialCommercial Real Real Estate Estate - 54%- 54% Best Affordable and Best Apartment Renovation 50,000,000 14%14% 50,000,00050,000,000 6/30/2008 0 7% 6/30/20086/30/2008 AtlantaAtlanta Development Development Authority Authority - 5%- 5% 5,000,000 7% 2008 Multifamily Project of the Year Award from Multifamily Executive Magazine 12/31/2005 6/30/2006 6/30/2007 6/30/2008 0 5,000,000 10,000,000 15,000,000 20,000,000 12/31/20055,000,0005,000,0006/30/2006* 6/30/2007 6/30/2008 BeltLineBeltLine Project Project - 23%- 23% OtherOther - 4%- 4% *6 months, short year 0 0 0 7% Commercial Real Estate - 43% 31%31% 7% Commercial Real Estate - 43% West Highlands by Brock Built 12/31/200512/31/200512/31/20056/30/20066/30/20066/30/20066/30/20076/30/20076/30/20076/30/20086/30/20086/30/2008 0 0 0 5,000,0005,000,0005,000,00010,000,00010,000,00010,000,00015,000,00015,000,00015,000,00020,000,00020,000,00020,000,000 12/31/200512/31/200512/31/20056/30/2006*6/30/2006*6/30/2006*6/30/20076/30/20076/30/20076/30/20086/30/20086/30/2008 Located in the Westside TAD on Martin Luther King, Jr. Drive 23%23% *6 months,*6 months,*6 shortmonths, short year shortyear year OtherOther - 2%- 2% Gold OBIE Award by the Greater Atlanta Home Builder’s Association

Legacy Property Group for Hilton Garden Inn Total Asset Trend Net Asset Trend Revenue Trend 250,000,000 Total Asset Trend Net Asset Trend Revenue Trend Total Asset Trend Net Asset Trend 35,000,000 Revenue Trend Located in the Westside TAD in Downtown Atlanta $204,185,000 Asset by Operating Unit, as of 6/30/08 Gross Revenue by Activity, YE 6/30/07 $32,300,000 Gross Revenue by Activity, YE 6/30/08 250,000,000 $9,449,000 35,000,000 Total Revenue: $13.3 Million Total Revenue: $32.3 Million Multi-brand developer of the Year by Hilton Hotels 250,000,000 $204,185,000 30,000,00035,000,000 $32,300,000 $204,185,000 200,000,000 $151,876,000 12/31/2005 5% $9,449,000 4% $13,300,000$32,300,000 $9,449,00030,000,000 Gross Revenue by Activity, YE 6/30/07 Gross Revenue by Activity, YE 6/30/08 AssetAsset Assetby by Operating Operatingby Operating Unit, Unit, asUnit, asof of6/30/08as 6/30/08 of 6/30/08 $5,590,000 GrossGross Revenue Revenue by by Activity, Activity, YE YE 6/30/07 6/30/07 GrossGross Revenue Revenue by by Activity, Activity, YE YE 6/30/08 6/30/08 200,000,000 $151,876,000 12/31/2005 25,000,00030,000,000 11% Total$13,300,000 Revenue: $13.3 Million Total Revenue: $32.3 MillionSingle-family Real Estate - 5% 12/31/2005 TotalTotal Revenue: Revenue: $13.3 $13.3Multifamily Million Million Real Estate - 11% 5% 2% TotalTotal Revenue: Revenue: $32.3 $32.3 Million Million Sustainability 200,000,000 $110,838,000$151,876,000 25% $5,590,000 $10,400,000$13,300,000 $5,590,00025,000,000 150,000,000 6/30/2006 5%5%5% Real Estate Portfolio - 25% $16,082,000 4%4%54%4% 6% $110,838,000 25% 20,000,00025,000,000 $10,400,000 43% Multifamily Real Estate - 6% 11% 150,000,000 $110,838,000 6/30/2006 $16,082,000 5% 11%11% Grants - 5%$10,400,000 2% Single-familySingle-familySingle-family Real Real Estate RealEstate - 5%Estate - 5% - 5% ADA is committed to sustainability. We support the city’s sustainability initiative that all new buildings conform $111,055,000 6/30/200625% 20,000,000 $22,600,000 MultifamilyMultifamilyMultifamily Real Real Estate RealEstate - 11%Estate - 11% - 11% 5%5%5%2%2% 150,000,000 25%25% Downtown Development Authority - $17,376,00014% $16,082,000 7% 15,000,00020,000,000 6% Grants - 7% to green standards and strive to become a “zero waste” office. In 2008 we implemented the following100,000,000 green $111,055,000 RealReal Estate RealEstate Portfolio Estate Portfolio Portfolio - 25% - 25% - 25% $22,600,000 54% 6%6% $111,055,000 6/30/2007 25% 54%54%Debt Issuance$22,600,000 and Servicing - 19% 43% MultifamilyMultifamilyMultifamily Real Real Estate RealEstate - 6%Estate - 6% - 6% 25%25% $17,376,000 15,000,000 5% Grants - 5% 43%43% office practices: 100,000,000 Atlanta Beltline Inc. - 31% $17,376,000 5%5% GrantsGrants - 5% - 5% 6/30/2007 10,000,00015,000,000 Debt Issuance and Servicing -7% 100,000,000 6/30/2007 DowntownDowntownDowntown Development Development Development Authority Authority Authority - 14% - 14% - 14% 7%7%7% BeltLine Project - 7% 7% GrantsGrants - Grants7% - 7% - 7% 50,000,000 6/30/2008 10,000,000 19% DebtDebt Issuance DebtIssuance Issuance and and Servicing Servicingand Servicing - 19% - 19% - 19% Urban Residential Finance Authority - 25% 5,000,00010,000,000 50,000,000 Atlanta Beltline Inc. - 31% Inter-Gov't Agreements - 7% • Telecommuting and flexible work schedules for employees 6/30/2008 AtlantaAtlanta Beltline Beltline Inc. Inc. - 31% - 31% Commercial Real Estate - 54% Debt Issuance and Servicing -7% 50,000,000 14% 5,000,000 DebtDebt Issuance Issuance and and Servicing Servicing -7% -7% 6/30/2008 BeltLineBeltLine BeltLineProject Project - Project7% - 7% - 7% 7%7%7% Atlanta Development Authority - 5% 5,000,0000 7% • Public transportation cost-sharing incentives Urban Residential Finance Authority - 25% 19%19%19% BeltLine Project - 23% UrbanUrban Residential Residential Finance Finance Authority Authority - 25% - 25% 12/31/2005 6/30/2006* 6/30/2007 6/30/2008 Other - 4% 12/31/2005 6/30/2006 6/30/2007 6/30/2008 0 5,000,000 10,000,000 15,000,000 20,000,000 0 Inter-Gov'tInter-Gov'tInter-Gov't Agreements Agreements Agreements - 7% - 7% - 7% CommercialCommercialCommercial Real Real Estate RealEstate - 54%Estate - 54% - 54% 12/31/2005 6/30/2006 6/30/2007 6/30/2008 14%014%14%5,000,000 10,000,000 15,000,000 20,000,000 12/31/2005 6/30/2006*0 6/30/2007 6/30/2008 • Recycled stationery and business cards 7% *6 months, short year 7% Commercial Real Estate - 43% 12/31/2005 6/30/2006 6/30/2007 6/30/2008 31%0 5,000,000 10,000,000 15,000,000 20,000,000AtlantaAtlanta DevelopmentAtlanta Development Development Authority Authority Authority - 5% - 5% - 5% 12/31/2005 6/30/2006* 6/30/2007 6/30/2008 7%7% BeltLineBeltLine BeltLineProject Project - Project23% - 23% - 23% *6 months, short year OtherOther - 4%Other - 4% - 4% • Use of green cleaning supplies *6 months, short year 23% Other - 2% 7% Commercial Real Estate - 43% • Use of filtered water machines instead of bottled water 31%31%31% 7%7% CommercialCommercial Real Real Estate Estate - 43% - 43% 23%23%23% OtherOther - 2%Other - 2% - 2% Marketing and Promoting the city of Atlanta Asset by Operating Unit, as of 6/30/08 Gross Revenue by Activity, YE 6/30/07 Gross Revenue by Activity, YE 6/30/08 Total Asset Trend Net Asset Trend RevenueTotal TrendRevenue: $13.3 Million Total Revenue: $32.3 Million Total Asset Trend Net Asset Trend Gross RevenueRevenue by Activity, Trend YE 6/30/07 Gross Revenue by Activity, YE 6/30/08 Asset by Operating Unit, as of 6/30/08 Gross Revenue by Activity, YE 6/30/07 Gross Revenue by Activity, YE 6/30/08 ADA is focused on marketing and promoting250,000,000 the city of Atlanta. In 2008, we: Asset5% by Operating Unit, as of 6/30/08 35,000,000 Total Revenue:4% $13.3 Million Total Revenue: $32.3 Million 250,000,000 $204,185,000 35,000,000 Total Revenue: $13.3 Million $32,300,000 Total Revenue: $32.3 Million 11% $204,185,000 5% $9,449,000 4% $32,300,000 2% Single-family Real Estate - 5% 25% 5% $9,449,000 30,000,000 4% Multifamily Real Estate - 11% 5% 200,000,000 $151,876,000 12/31/2005 11% Single-family Real Estate - 5% Real Estate Portfolio - 25% 30,000,000 11% 54% Multifamily Real$13,300,000 Estate - 11% 5% 6%2% • Directly pitched or contributed to 55 positive, nationally published print news stories25% with an 12/31/2005 25% $5,590,000 2% MultifamilySingle-family Real Estate Real - 6% Estate - 5% 200,000,000 $151,876,000 25% $13,300,000Multifamily Real Estate - 11% 5% 43% Real Estate Portfolio - 25% $5,590,000 25,000,000 5% 54% Grants - 5% 6% advertising value equivalency of approximately $800,000 25% Real Estate Portfolio - 25% 25,000,000 6% 43% Multifamily Real Estate - 6% $110,838,000 Downtown Development Authority - 14% 5% 54% Grants - 5% $10,400,000 7% 150,000,000 6/30/2006 25% $16,082,000 43% Grants - Multifamily7% Real Estate - 6% $110,838,000 20,000,000 5% $10,400,000Grants - 5% • Increased circulation of ADA’s150,000,000 monthly electronic newsletter, Pulse of Progress, from 20,000 to 6/30/2006 Downtown Development Authority - 14% $16,082,000 Debt Issuance and Servicing - 19% 7% $111,055,000 Downtown Development Authority - 14% 20,000,000 7% Grants - 7% Atlanta Beltline Inc. - 31% Debt Issuance $22,600,000and Servicing - 19% Grants - 7% $111,055,000 $17,376,000 Debt Issuance and Servicing -7% 25,000, with 40 percent of readers located out-of-state 15,000,000 $22,600,000BeltLineDebt Project Issuance - 7% and Servicing - 19% 7% 100,000,000 6/30/2007 Atlanta Beltline Inc. - 31% $17,376,000 Atlanta Beltline Inc. - 31% 15,000,00019% Debt Issuance and Servicing -7% 100,000,000 6/30/2007 Urban Residential Finance Authority - 25% BeltLine Project - 7% 7% Debt Issuance and Servicing -7% • Gave more than 65 external presentations about ADA programs 7% Inter-Gov't Agreements - 7% 19% 10,000,000 CommercialBeltLine Real Project Estate - 7%54% 14% Urban Residential Finance Authority - 25% 19% 50,000,000 Urban Residential Finance Authority - 25% 10,000,000 Inter-Gov't Agreements - 7% • Hosted 200 prospective entrepreneurs at monthly small business information seminars 6/30/2008 Atlanta Development Authority - 5% Commercial Real Estate - 54% 7% Inter-Gov't Agreements - 7% 50,000,000 14% 5,000,000 Commercial Real Estate - 54% BeltLine Project - 23% 14% 6/30/2008 Other - 4% 7% Atlanta Development Authority - 5% 5,000,000 • Hosted more than 1,000 real estate agents and brokers throughout the year at our monthly Advantage Atlanta Development Authority - 5% 7% BeltLine Project - 23% Other - 4% BeltLine Project - 23% 31% 0 7% Other - 4% Commercial Real Estate - 43% Realtor Training sessions. 12/31/2005 6/30/2006 6/30/2007 6/30/2008 0 5,000,000 10,000,000 15,000,000 20,000,000 0 12/31/2005 6/30/2006* 6/30/2007 6/30/2008 31% 7% 23% Commercial Real Estate - 43% 12/31/2005 6/30/2006 6/30/2007 6/30/2008 0 5,000,00031% 10,000,000 15,000,000 20,000,000 12/31/2005 6/30/2006*7% 6/30/2007 6/30/2008 Other - 2%Commercial Real Estate - 43% *6 months, short year 23% *6 months, short year 23% Other - 2% Other - 2%

Asset by Operating Unit, as of 6/30/08 Gross Revenue by Activity, YE 6/30/07 Gross Revenue by Activity, YE 6/30/08 Asset by Operating Unit, as of 6/30/08 Gross RevenueTotal Revenue: by Activity, $13.3 YE Million 6/30/07 Gross RevenueTotal Revenue: by Activity, $32.3 YE Million 6/30/08 Total Revenue: $13.3 Million Total Revenue: $32.3 Million 5% 4% 5% 11% 4% 2% Single-family Real Estate - 5% 25% 11% Multifamily Real Estate - 11% 5% Single-family Real Estate - 5% Multifamily Real Estate - 11% 5% 2% 25% Real Estate Portfolio - 25% 54% 6% 25% 43% Multifamily Real Estate - 6% Real Estate Portfolio - 25% 5% 54% Grants - 5% 6% 25% 43% Multifamily Real Estate - 6% Downtown Development Authority - 14% 5% Grants - 5% 7% Grants - 7% Downtown Development Authority - 14% 7% Debt Issuance and Servicing - 19% Grants - 7% Atlanta Beltline Inc. - 31% Debt Issuance and Servicing - 19% Debt Issuance and Servicing -7% Atlanta Beltline Inc. - 31% 7% BeltLine Project - 7% Debt Issuance and Servicing -7% 7% Urban Residential Finance Authority - 25% 19% BeltLine Project - 7% 19% Inter-Gov't Agreements - 7% Urban Residential Finance Authority - 25% Commercial Real Estate - 54% 14% Inter-Gov't Agreements - 7% Atlanta Development Authority - 5% Commercial Real Estate - 54% 7% 14% BeltLine Project - 23% Atlanta Development Authority - 5% 7% Other - 4% BeltLine Project - 23% Other - 4% 31% 7% Commercial Real Estate - 43% 31% 7% Commercial Real Estate - 43% 23% 23% Other - 2% Other - 2% Atlanta Development Authority • 2008 Annual Report

Mission Statement:

The Atlanta Development Authority is the economic development agency for the city of Atlanta. ADA represents , which has a population of 525,000 and growing. A research-based economic development organization, it focuses on residential, business, and investment growth in the city, as outlined in the New Century Economic Development Plan. ADA is governed by a nine-member board of directors, chaired by the mayor of Atlanta. ADA has 45 employees and partners regularly with more than 50 economic devel- opment partner organizations.

For more information about the Atlanta Development Authority, please visit us on the web at www.Atlantada.com. Atlanta Development Authority at 86 Pryor Street, Suite 300 Atlanta, GA 30303 404-880-4100

Economic Development Partners City of Atlanta Department of Planning and Community Development City of Atlanta Department of Public Works Atlanta BeltLine, Inc. City of Atlanta Department of Watershed Management Atlanta City Council City of Atlanta Office of the Mayor Atlanta Committee for Progress DeKalb County Atlanta Convention and Visitors Bureau Fulton County Atlanta Coordination Committee for the Renewal Community Georgia BIO Atlanta Education Fund Georgia Department of Community Affairs Atlanta Housing Authority Georgia Department of Economic Development Atlanta Neighborhood Development Partnership Georgia Institute of Technology Atlanta Police Department Georgia Power Atlanta Police Foundation Georgia Research Alliance Atlanta Public Schools Atlanta Regional Commission Georgia World Congress Center Atlanta Regional Council for Higher Education Hartsfield-Jackson Atlanta International Airport Atlanta Sports Council Imagine Downtown, Inc. Atlanta Technical College Innovation Crescent Regional Partnership Atlanta Workforce Development Agency Livable Communities Coalition Atlanta-Fulton County Recreation Authority Logistics Innovation Council BeltLine Partnership MARTA Brand Atlanta McPherson Implementation Local Redevelopment Authority Coalition McPherson Planning Local Redevelopment Authority Buckhead Community Improvement District Metro Atlanta Arts and Culture Coalition Central Atlanta Progress Metro Atlanta Chamber of Commerce CIFAL Atlanta Midtown Alliance City of Atlanta Department of Finance PATH Foundation City of Atlanta Department of Fire Rescue Technology Association of Georgia City of Atlanta Department of Law Terwilliger ULI Center City of Atlanta Department of Parks, Recreation and Cultural Affairs Trust for Public Land