NewTown Macon kicks off final project from loan fund

The latest downtown Macon loft development is putting an exclamation point on three years’ worth of projects funded in part by $5 million in bonds.

With officials announcing Monday that construction is set to begin on the Lofts at Silver, NewTown Macon will have leveraged the bond money into eight different projects worth a total of $26.1 million.

Josh Rogers, president and CEO of NewTown, said the best part of the deal -- beyond the 230 new residents, 17 new storefronts and 182 new lofts -- is that it doesn’t cost the taxpayers a dime.

“These projects converted over 250,000 feet of vacant space in downtown to active use,” Rogers said. “Most significantly, the value of those buildings before receiving loan funds was $2 million altogether. When they are complete, the value is going to be a little over $26 million. So, over $20 million in taxable value was created in this bond fund. ... It’s cost the taxpayers no money to generate that extra tax revenue, which is just an ideal economic development program, matching together the private and public sectors.”

Mercer University President Bill Underwood, the chairman of NewTown’s board, noted that when developers started to talk about adding lofts and rehabbing old buildings downtown in 2011, they had a difficult time raising the necessary money. Banks would only lend a limited amount of money, and developers struggled to raise all the money they needed from private sources.

Thanks to the former Bibb County government, the Development Authority of Bibb County in 2012 was able to issue $5 million in bonds at a low interest rate. NewTown then loaned money to developers at a higher rate of interest, meaning no public money was used to service the debt.

Underwood said the new residents who moved downtown as a result of the bonds’ projects spend an average of $11,000 apiece each year in the downtown area, which has attracted new businesses.

The bond-funded projects also have generated $530,132 in sales tax and an annual increase in property tax revenue of $287,109, according to figures provided by NewTown.

Developer Scott Thompson, whose company is rebuilding the Lofts at Silver, said the building -- located at 450 Third St. -- was originally Silver’s Department Store, a five-and-dime store that opened in 1927. In 1952, the building had new owners and remained occupied with several businesses until 1986, when it became vacant. It’s been unused ever since.

Thompson said the new development, which is supposed to open next May, will have 24 one- and two-bedroom lofts for rent, plus a commercial space downstairs. He said he doesn’t know yet if it will be a restaurant or a store.

NewTown officials and Macon-Bibb County Mayor Robert Reichert said the next step is to issue a new set of bonds to keep the momentum rolling. Already eyeing more development on Third Street south of Poplar Street, Reichert said he hopes to present a new loan fund plan to Macon-Bibb commissioners in the next few weeks. NewTown’s board voted in March to request $10 million in bonds for the next round of the loan fund.

“It makes all the sense in the world,” Reichert said.

This story was originally published June 15, 2015 at 4:10 PM with the headline "NewTown Macon kicks off final project from loan fund ."