This plan could sway developers to renovate empty big box stores, industrial buildings
An 84,000-square-foot building has been empty since Kroger closed the Pio Nono Avenue grocery store in April 2018.
The closure sparked questions about what the future holds for the empty building, one of many vacant commercial and industrial properties across Macon. However, a new program expected to roll out this year would try to encourage developers to renovate vacant buildings in order to attract a new company to move in.
In some instances former stores or manufacturing plants have been abandoned for so long that the structures have deteriorated. Others, such as the former Kroger, may just need some work done to prepare the building for a different use than the previous tenant.
That’s where the Macon Bright Program could play a pivotal role in their redevelopment. The Macon-Bibb County Industrial Authority’s program would try to entice developers by offering a property tax freeze as an incentive.
The program was coined “Bright” because it represents the turnaround that could happen to some of the area’s blighted buildings.
There has been some early positive feedback from some developers and realtors about the proposed program, Industrial Authority Executive Director Stephen Adams said.
“We’re attempting to reduce risk on behalf of the developers to go in and make an investment that they maybe were previously considering but the risk was just to high,” he said. “This effort is really to held reduce risk and the beauty of this is that it’s no loss of revenue to the taxing entities.”
Under the program, property taxes could be frozen for up to five years while a developer renovates or re-purposes that property. The Industrial Authority would determine which properties would be eligible for Macon Bright.
“We’re not trying to tell the developers when they come what to create from their building,” said Robby Fountain, chairman of the Industrial Authority. “It could be another big box or it could be a manufacturer. It could be anything. The sky’s the limit.
“We don’t know if this program can fix and address all the issues,” Fountain added. “We’re going to test the waters and see if there’s any activity or appetite from developers.”
The Authority would issue bonds to cover up to $25 million in projects. The bonds would not involve any cash being borrowed or loaned for the redevelopment. Instead, it would allow the authority to have the title to properties so that the property tax freeze could be implemented.
A goal would be for the property to have doubled in value by the time the tax freeze is lifted.
“They’re phantom bonds,” Fountain said. “It’s a bond for titles, a paper transaction. There’s no change of hand of any money. It’s a paper transaction so that the Industrial Authority can assume the title of the property.
“It’s been done with Kumho (Tire). It’s been done with Amazon. It’s been done with Irving (Consumer Products),” Fountain said. “It’s just another tool we use to entice,” industrial development.
The program would need the support from Macon-Bibb County government and the Bibb County school system since it would involve freezing property taxes for a period of time.
Macon-Bibb County Mayor Robert Reichert, who also serves on the Industrial Authority board, describes the Macon Bright Program as a “no brainier.”
“The only thing you’re giving up is the taxes on the increased value for up to five years or until (the owner) gets it ready for lease or sells it,” he said.
The Bright Program would use a different approach to deal with blight than the county government. The county has spent $14 million on blight projects over the past handful of years.
“With our blight remediation program, we’ve been fighting it in our neighborhoods with house demolition, park creation, and saving structures,” Reichert said. “With the Industrial Authority’s help, commercial and industrial blight can be more directly fought by incentivizing investment and revitalization.”
This story was originally published March 7, 2019 at 2:02 PM.