BOC Consents to the Stockbridge Tax Allocation District

Photo shows the vision for downtown Stockbridge with a five-story apartment building across the street from Stockbridge city hall (Stockbridge photo).
(Stockbridge photo)

Henry County board members have approved the county’s participation in a tax allocation district in downtown Stockbridge. The Stockbridge TAD looks to redevelop the downtown district. The city is proposing the Stockbridge Town Center, a mixed-use development, to anchor the redevelopment.

A tax allocation district does not raise property taxes nor does it reduce the tax revenue presently being paid to Henry County. Instead, new tax revenue following redevelopment goes to pay off infrastructure improvements. The TAD provides upfront financing for infrastructure projects.

Stockbridge Town Center

The Henry Reporter previously shared Stockbridge’s concept to redevelop its downtown area. The concept, shared last summer, proposes multiple 4 and 5-story apartment buildings. The buildings would have retail space on their ground floor. Several parking decks are also part of the plan.

Stockbridge has a developer onboard to build what the city is calling its Town Center project. They have not shared which developer they’re working with. The Town Center project is an estimated $300+ million dollar development. Renderings shared in October illustrated up to 340 apartments.

Map showing Stockbridge plan for the downtown area with new buildings and mixed-use development (Stockbridge photo).
Click to Enlarge (Stockbridge photo)

Most of the property for the project is already owned by Stockbridge. According to the city, the developer is in discussions with three property owners about land acquisition. Stockbridge officials reassured the county that eminent domain would not be used for the project. The board of commissioners added this as a condition to their consent as well.

Stockbridge expects the tax allocation district will pay for $30-40 million in upfront costs. These expenses include building parking decks and other infrastructure. Stockbridge officials shared the Town Center project is not financially feasible without the TAD.

What is a TAD?

Many readers may be wondering what is a TAD. It is a redevelopment tool which pledges future property tax collections towards the cost of upfront infrastructure improvements. The amount presently collected in property taxes will continue to go towards general operating budgets. Subsequent growth in tax revenue following redevelopment is then channeled to repay infrastructure bond debt.

One example of a successful TAD is Atlantic Station in midtown Atlanta. The TAD covered the redevelopment of a 138-acre brownfield site following heavy industrial use. Today, a variety of mixed-use development occupies the area.

TADs are more commonly referred to as tax increment financing (TIF) in other states. YouTuber Road Guy Rob published a video (14 minutes) in November looking at TIF projects in Carmel, Indiana.

How We Got Here

  • November 2020 – Henry County voters approved the redevelopment powers referendum, authorizing Henry County and cities to consider tax allocation districts as a redevelopment tool.
  • November 2022 – Stockbridge approved its first tax allocation district, Stockbridge TAD 1, for its downtown area.
  • June 2023 – Stockbridge presented to Henry County asking for their consent to be part of the TAD. County commissioners advised to hold-off, waiting for 1) Stockbridge to impose its own property tax, and 2) seeking more information about the proposed development.
  • January 2025 – Stockbridge presented again to Henry County with updated details. Henry County BOC approved their participation in the TAD.
  • TBD – Stockbridge will make a similar presentation to Henry County Schools asking for their participation / consent as well.

The county commissioners did not pledge all of its tax revenue collected from downtown Stockbridge. Instead, the city’s tax allocation district will include the county’s general fund and recreation taxes only. Henry County water, fire and bond debt taxes (if passed in the future) will continue unrestricted to the county.

Projections show the Town Center development will be revenue-positive to Henry County. If the status quo continued in downtown Stockbridge, then the county would receive an estimated $25.6 million in property tax revenue during the next 28 years. That’s the remaining lifetime of the TAD. By comparison, after the Town Center project is complete, the county will receive an estimated $31.1 million in taxes not pledged to the TAD. The county’s general fund and recreation taxes would contribute $26.6 million into the TAD.

After the TAD financing is paid off, then county property taxes would be released from their TAD commitment and become available in the general fund. The TAD exists until 2052; however, TADs can pay off their financing early and dissolve ahead of schedule.

Finally, the county’s consent applies only to the Town Center project. If Stockbridge wishes to pursue another development within the Stockbridge TAD, then they must return to the board of commissioners. The BOC would then consider again whether to pledge its participation.

The board of commissioners unanimously approved their participation in the Stockbridge TAD at the January 21, 2025 meeting.

Henry County Schools

To fully implement the TAD, Stockbridge is also looking for Henry County Schools to participate. The city will present at an upcoming Henry County Board of Education meeting. That meeting is TBA.

Featured image shows the downtown Stockbridge rendering. Stockbridge photo.

About Clayton 1746 Articles
Clayton Carte is the founder and owner of The Henry Reporter. He founded the site in 2017 to highlight transportation projects. Over time, he began covering other topics like new development so residents can best know what’s happening in our community.