Locust Grove Denies Request to Reduce Apartment Impact Fees

Continental Properties, the developer for an upcoming apartments project in Locust Grove, had requested the city reduce its impact fees. The city council denied this request on July 1.

The developer shared their apartments project will benefit the city by locating residents who can support additional retail & restaurants. They will also be making road improvements on Price Drive.

Locust Grove Apartments Impact Fees

Continental Properties of Wisconsin plans to construct the Springs at Locust Grove apartments. They are under contract to purchase thirty-one acres along Price Drive. The property is in the northeast quadrant of the I-75 exit 212 / Bill Gardner Parkway interchange.

Continental took over the project plans in 2023. A different developer, Tellus Properties, represented the property during the rezoning request. They walked away from the project based on the city’s zoning conditions. The conditions require improving Price Drive to a three-lane road with center turn-lane.

On June 13, Continental Properties DBA Continental 737 Fund, LLC submitted a formal request to Locust Grove for the city to waive their impact fees. The Springs apartments impact fees total $474,288 owed by the developer. In lieu of paying impact fees, Continental requested credit for their infrastructure costs. According to their request, the Price Drive road improvements will cost $1 million to build. In addition, they cited the cost to extend sewer service at $568 thousand.

Representatives from Continental further explained the apartments would help bring in additional residents to support retail & restaurants. According to their presentation, each household at the Springs at Locust Grove would spend an estimated $45 thousand in discretionary income. This would equate to $14 million in additional revenue for local businesses. This could help locate additional retail and restaurants within the city, Continental presented.

City Council Decision

Continental Properties’ representatives presented their request to the city council on June 17, and again on July 1. The Locust Grove council considered action on the request on the later date.

Before voting on the request, several council members expressed their objections. Councilman Greer remarked “your numbers just aren’t adding up,” in reference to discretionary income. “The average person is not making $70 to $100 thousand dollars.”

Councilman Shearouse continued the city council approved conditions for the property in 2022. “I struggle with being asked to change conditions we approved two years ago.” He further shared the zoning conditions adopted by the city call for the road improvements in question.

Councilman Boone remarked ”how can you explain away a half-million dollars?” if the city approved the request. Impact fees help pay for needed road improvements.

City Attorney Welch shared with the council there can be two reasons to grant an impact fee credit. They are for projects of significant economic development, such as a new major employer, or for developers installing a system improvement. He further explained the improvements being discussed for Price Drive are project improvements; they will serve the subject property and development. He did not believe them to be system improvements. For these reasons, Welch did not recommend the city grant the impact fee credit.

The Locust Grove council unanimously denied the request to reduce the impact fees.

About The Springs at Locust Grove

The upcoming apartments project has 328 units in ten buildings. The unit breakdown includes 28 efficiency units, 136 one-bedroom units, 136 two-bedroom units and 28 three-bedroom units. The rental rates will range between $1,350 to $2,100 per month. The average rent will be $1,600 to $1,700 monthly.

Site amenities will include a clubhouse, fitness center and pool. There will also be picnic areas, a car care center, pet spa, pet playground, walking trail, pickleball court and bocce court. Road access will be off Price Drive.

The developer, Continental Properties, has two Springs-brand properties in Georgia, including one in Henry County. They operate the Springs at McDonough apartments near South Point. The apartments built in 2017. Secondly, they operate Springs at Newnan.

Finally, the company has three Georgia properties under their Authentix brand. Those locations are in Cartersville, Fairburn, and coming soon in LaGrange.

Featured image shows the exterior rendering for Springs at Locust Grove. Continental Properties photo.