The Avondale Estates Tax Allocation District was created in 2007 to grow a stagnant commercial tax base. Seventeen years later, the downtown has been transformed — but an unelected volunteer board now controls more than $10 million in public funds, and the city's largest development in decades is about to test who benefits from that money.
The Avondale Estates Tax Allocation District was created in 2007 under Georgia's redevelopment powers law and is administered by the DDA. Its boundary covers the downtown Central Business District.
A TAD freezes the assessed value of property within the district at creation. All taxes on that frozen baseline continue to flow normally to the City, DeKalb County, and other taxing entities. Any increase in assessed value above the baseline — the "increment" — is captured by the TAD fund and must be reinvested within the district. It cannot be used for general fund operations: police, public works, or city administration. DeKalb County participates, contributing its share of the increment. The school board does not.
The stated purpose was economic revitalization: grow a stagnant commercial tax base, attract private investment to a dormant downtown, and eventually produce enough commercial revenue to relieve pressure on residential property owners. The TAD is scheduled to expire in 2032 — roughly 25 years after creation, with six years remaining.
Downtown Avondale has unquestionably changed. Willis Apartments (197 units, 2018), Jade at Avondale (270 units, 2020), the Town Green park, and The Dale commercial buildings are real physical results. The DDA's own 2024 annual report notes the commercial share of the city's tax digest grew from 3% in 2016 to 21% in 2024.
But 21% in 2024 is identical to the commercial share in 2019 — before Willis opened, before Alexan arrived, before the Town Green was built. The metric the DDA uses to demonstrate success has not moved in five years of completed development. The stated goal of relieving residential tax burden through a more balanced commercial base has not materialized in measurable terms.
Meanwhile, the TAD fund has been accumulating without being spent:
| Metric | Figure | Notes |
|---|---|---|
| 2024 TAD revenue | $389,867 | 160% over budget of $150,000 |
| 2024 TAD expenditures | $0 | Nothing spent on the district |
| TAD fund balance (year-end 2024) | $1,194,921 | TAD sub-fund only |
Source: City of Avondale Estates 2024 Annual Comprehensive Financial Report; DDA April 2025 Financial Statements; DDA Treasurer's Reports Q1–Q2 2025.
The TAD balance is only part of the DDA's holdings. The DDA's December 31, 2024 balance sheet — published in the city's own financial records — shows a total fund balance of $10,959,313, accumulated primarily from the 2020 sale of the DJJ building, investment returns, and TAD increment. The balance is held across three categories: approximately $6.85 million in Georgia Fund 1 (a state-managed investment pool), approximately $2.95 million in Notes Receivable (the Dale development loan), and $87,653 in cash. The DDA earned $482,716 in interest income in 2024 — 258% above its own budget projection of $187,074 — a high-rate year. The April 30, 2025 balance sheet confirms the fund at $10,743,755 ($5.55M in Georgia Fund 1, $4.175M in Notes Receivable, $109K in cash); the 2025 interest revenue budget is $200,384, reflecting a normalized rate environment. In both years, expenditures on the TAD district were $0.
This is not a lean authority scraping together resources to invest in a struggling district. It is a body controlling nearly $11 million in public funds, with no specific project approved for those funds and $0 spent on the TAD district in 2024. The elected Board of Mayor and Commissioners has no direct control over this money. The DDA is governed by seven appointed volunteers.
In January 2023, the DDA entered a development agreement with ATG Partners, LLC — the joint venture of Fabric Developers and Healey Weatherholtz Properties — to build The Dale, a 24,000-square-foot commercial development fronting the Town Green. The loan terms are established in a June 2022 Memorandum of Understanding, a public document in the city's agenda system.
| Term | Detail |
|---|---|
| Primary loan amount | $3,260,000 |
| Interest rate | 3.0% |
| Structure | Interest-only payments for full 10-year term |
| Principal repayment | Balloon payment only upon sale or refinancing |
| Additional proceeds | Developer pays DDA 15% of net proceeds on any sale or refinance |
| Second loan (if costs rise) | Up to $10,500,000 at 4.0–5.0%, same interest-only structure |
| Building pad sale price | $100,000 — prime downtown location adjacent to city-funded park |
| Competitive bid process | None — MOU states DDA "selects Developer as the developer of its choice" |
| Outstanding balance (Q2 2025) | $4,175,000 |
Source: DDA MOU for Town Green Mixed Use Project, June 2022 (public agenda attachment); DDA Treasurer's Reports Q4 2024 through Q2 2025.
Several structural features of this arrangement are worth examining.
The interest rate was below market. Conventional construction financing in 2022–2023 carried rates of 6–8% or higher. At the current $4.175 million balance, the gap between 3% and a market rate of 7% represents approximately $167,000 per year in foregone interest — while the DDA simultaneously earned $482,716 on its own idle cash at market rates in 2024 (budgeted at $200,384 for 2025 as rates normalized).
The building pad was sold at nominal value. The DDA conveyed a prime parcel adjacent to a city-funded public park to a private developer for $100,000. The MOU describes this as "1.2% of the Development Budget" — framing the transfer relative to the project cost rather than the land's independent market value.
The repurchase clause eliminates developer risk. If the developer stops construction, the DDA's only remedy is to repurchase the property for $100,000 plus all costs the developer has incurred. The developer cannot lose money. The public entity absorbs any cost overruns if the project fails.
There was no competitive selection process. The MOU states the DDA "selects Developer as the developer of its choice." Fabric Developers had previously built the Town Green park under a separate contract. There is no public record of a Request for Proposals, independent evaluation of alternatives, or competitive process for this $4 million public loan on publicly-owned land.
In February 2025, the BOMC voted 4–1 to transfer an additional $250,000 from the city's general fund to the DDA for streetscape work connecting The Dale to North Avondale Road. One commissioner dissented, objecting to the funding source. The buildings were completed and tenants began occupying in fall 2025. The $4.175 million loan remains outstanding as of the most recent available records.
In November 2023, Avondale Estates issued $8.59 million in 30-year revenue bonds — the first permanent bond debt in the city's history — to retire a Bond Anticipation Note that had been drawn down since 2019 to fund construction. The BAN functioned as a line of credit; the bond permanently financed the accumulated draw. General fund property tax revenue pays the annual debt service of approximately $520,000 through 2053.
The projects funded through the BAN fell into three distinct categories, with materially different characters:
Sources: Reeves Young construction contract approved by URA (Urban Redevelopment Authority), May 2021 ($5.7M base bid confirmed in multiple city and news records); market pavilion net cost per November 2021 BOMC discussion (~$850–915K; $870K per September 2025 DDA meeting minutes); North Woods Phase 2 contract awarded May 2023 ($1.15M + $115K contingency = $1.27M; partially offset by DNR (Georgia Dept. of Natural Resources) grants); design, engineering, ROW (right-of-way acquisition), and financing costs estimated as remainder to BAN payoff of $8,433,270.
| Project | Approx. Cost | Character |
|---|---|---|
| Town Green park, street, stormwater | ~$5,700,000 | Downtown CBD |
| Market pavilion | ~$870,000 | Downtown CBD |
| North Woods stormwater & trails | ~$1,270,000 | Residential (Lake Avondale) |
| Design, engineering, fees, financing | ~$750,000 | — |
| Total (BAN payoff) | $8,433,270 |
Approximately 77% of the bond-financed cost — the Town Green and market pavilion — serves the downtown Central Business District. The North Woods project, a stormwater and trail improvement at the residential Lake Avondale area, accounts for roughly 15% of the total. Both are serviced by the same general fund debt payment.
Placing the city's growing bond obligation alongside the DDA's fund balance over the same period reveals a consistent pattern. The BAN was outstanding from 2019; permanent bonds replaced it in December 2023. The SPLOST (Special Purpose Local Option Sales Tax) bond was added in October 2024. DDA fund balance figures for 2021–2023 are estimated from ACFR supplementary schedules and confirmed for 2024.
City debt: BAN balance estimated at ~$7M by year-end 2022 based on construction timeline; $8.59M URA Revenue Bonds issued November 2023 (Davenport pricing results, city ACFR); $3.785M SPLOST II bond issued October 2024 (self-liquidating — repaid by SPLOST receipts, not a general fund obligation). DDA fund balance: 2024 confirmed from 2024 ACFR Component Unit schedule ($10,959,313); 2021–2023 estimated from ACFR supplementary schedules.
The SPLOST bond is shown for completeness but is structurally distinct: its $3.785 million financed residential stormwater improvements (Dunwick, Kensington, Wiltshire corridors) and is repaid entirely by monthly SPLOST sales tax receipts with no general fund obligation.
The market pavilion raises a specific question the public record leaves unresolved. In the city's 2022 budget discussions, the DDA was reported to have approved $780,000 toward the cost of the market pavilion as part of its contribution to the Town Green project. The pavilion was constructed as part of the BAN-funded project — meaning the city carried the cost through borrowing.
At the DDA's September 9, 2025 regular meeting, the board chair noted that the DDA balance sheet was "not showing a $870,000 for the cost of the pavilion." The minutes record the statement that this amount "should be added as a liability on the balance sheet based on an IGA agreement with the Board of Mayor and Commissioners." (An IGA — Intergovernmental Agreement — is a formal contract between two public bodies, in this case the DDA and the City.)
Two things follow from this. First, as of September 2025, the pavilion cost had not been paid by the DDA — it had been absorbed by the city through the BAN and subsequently the permanent bond. Second, the obligation had not appeared as a liability on any published DDA financial statement. The city's bond debt service, paid by general fund property taxes, includes a cost the DDA had publicly committed to cover — and that commitment had not been reflected in any audited financial statement available through that date.
Whether the IGA referenced in the September 2025 DDA minutes has since been executed, whether the liability has been added to the DDA balance sheet, and whether a repayment schedule has been established are questions the public record does not yet answer. The DDA's January and February 2026 meeting minutes do not address the matter.
What the record shows: The DDA publicly committed ~$780K toward the market pavilion (2022 budget records). The pavilion cost ~$870K and was financed through the city's BAN. As of September 2025, the DDA's balance sheet did not reflect this as a liability — a gap the DDA board itself acknowledged at a public meeting. The city's bond debt service, paid by general fund property taxes, includes this cost.
Avila Real Estate and Hedgewood Homes received BOMC approval in December 2025 for 40 variances to develop approximately 800 residential units across 18 acres — the former Fenner Dunlop industrial site at 147 Oak Street and a parcel along Maple Street. Construction is expected to begin in 2026 with a 3–5 year buildout. The project has been described publicly as a $350 million development.
The former Fenner Dunlop site is confirmed inside the TAD boundary from the 2011 boundary update. At an estimated assessed value of approximately $140 million upon full buildout, Avila would generate substantial annual TAD increment:
| Taxing Entity | Millage Rate | Est. Annual Increment | Where It Goes |
|---|---|---|---|
| City of Avondale Estates | 9.55 mills | ~$1,337,000 | TAD fund — not general fund |
| DeKalb County | 20.81 mills | ~$2,913,000 | TAD fund |
| Total annual diversion | ~$4,250,000/year | DDA-controlled fund |
Millage rates from 2024 DeKalb County tax records. Assessed value estimate based on $350M project at Georgia's 40% assessment ratio. School Board taxes not subject to TAD capture.
If the TAD continues through its scheduled 2032 expiration, that $4.25 million per year flows to the DDA-controlled fund rather than to the elected BOMC's general fund. Between Avila's projected stabilization (~2029–2030) and the TAD's expiration (~2032), that represents a diversion of $8–12 million away from general fund services — police, public works, infrastructure maintenance — into an account the BOMC cannot direct.
The city has contemplated this scenario for nearly a decade. A March 2017 city publication titled "Draft City Wish List for Avila Owned Property" — still posted on the city's own website — listed as a planning objective: "Economic Projection for Schematics C and C.1, including possible municipal funding tools TAD, Abatement."
The BOMC approved all 40 variances December 3, 2025. The DDA's February 2026 meeting agenda listed "Avila Update and IGA" as a standing item — suggesting a formal intergovernmental agreement with the developer is under negotiation. The terms of that agreement have not been publicly disclosed.
While the DDA accumulated funds and the TAD captured downtown increment, Avondale Estates homeowners bore over a decade of rising property tax bills. For most of that period, the increase was driven entirely by rising assessed values — the millage rate (the tax rate applied per $1,000 of assessed value) fell from 10.957 mills in 2013 to 9.55 mills in 2024. In June 2025, however, the city raised its millage rate for the first time in a decade — to 10.05 mills, an 11.52% increase — citing rising operating costs. The combination of a higher rate and a growing digest is projected to push the 2025 levy to approximately $4.25 million, up from $3.37 million in 2024. The DDA's narrative that downtown investment benefited residents through a more balanced tax base is not supported by the data: homeowners paid more every year while the commercial share of the tax digest remained effectively flat.
Georgia's broader residential market appreciated sharply during this period. Metro Atlanta counties with no downtown TAD — and no DDA-administered abatements — saw comparable residential appreciation. The residential tax burden increase in Avondale Estates reflects a regional phenomenon, not a TAD dividend.
| Year | Net Tax Digest | Taxes Levied | Millage Rate | Change |
|---|---|---|---|---|
| 2013 | $149.5M | $1,637,629 | 10.957 | — |
| 2014 | $155.3M | $1,701,187 | 10.957 | +3.9% |
| 2015 | $183.2M | $1,824,558 | 9.957 | +7.3% |
| 2016 | $195.3M | $1,944,570 | 9.957 | +6.6% |
| 2017 | $206.4M | $2,055,503 | 9.957 | +5.7% |
| 2018 | $223.0M | $2,185,532 | 9.800 | +6.3% |
| 2019 | $247.6M | $2,426,089 | 9.800 | +11.0% |
| 2020 | $279.6M | $2,740,225 | 9.800 | +13.0% |
| 2021 | $305.2M | $2,990,525 | 9.800 | +9.1% |
| 2022 | $314.1M | $3,077,775 | 9.800 | +2.9% |
| 2023 | $347.1M | $3,401,374 | 9.800 | +10.5% |
| 2024 | ~$387M | $3,373,365 (actual) | 9.550 | −0.8% |
| 2025 | $423.0M | ~$4,251,000 (levy billed) | 10.050 ↑ | +26% vs. 2024 actual |
Sources: City of Avondale Estates Published Tax Digest and Five-Year History of Levy, 2018 and 2023 editions (O.C.G.A. § 48-5-32); City of Avondale Estates Budget vs. Actual Report through 12/31/2024 (2024 actual = $3,373,365); June 2025 Notice of Property Tax Increase and Millage 101 presentation (2025 levy at 10.05 mills on ~$423M net digest). Note: The 2025 ACFR has not yet been published (typical mid-year release). The 2025 figure shown is the levy billed — actual collected revenue will be somewhat lower after appeals and delinquencies, consistent with the historical 7–10% discount between levy and actual. The 2025 millage increase from 9.55 to 10.05 mills — the first rate increase since 2015 — occurred while the DDA held over $10.7M in public funds earning $482,716 in interest in 2024 (budgeted at $200,384 for 2025).
The bottom line: a homeowner whose property was assessed at $300,000 in 2013 paid approximately $1,230 in city property taxes that year. At 9.55 mills on a typical current assessment of $550,000, that same property paid approximately $2,099 per year in 2024 — a 71% increase in actual dollars, driven entirely by rising assessed values while the millage rate fell. For 2025, the city raised its millage rate for the first time in a decade — from 9.55 to 10.05 mills, an 11.52% increase — citing rising operating costs. According to the city's own June 2025 Notice of Property Tax Increase, the billed levy for a $550,000 assessed home is approximately $2,332, an increase of $233 over 2024. The 2025 ACFR won't be published until mid-2026, so actual collected figures aren't yet available, but the 2025 levy of ~$4.25M represents the steepest single-year increase in the decade — occurring while the DDA collected $482,716 in interest on idle cash in 2024 and spent nothing on the TAD district either year.
The two charts below show the fiscal difference between continuing the TAD through Avila's buildout versus ending it now and allowing new development revenue to flow to the general fund.
Avila increment captured by DDA — not available to elected BOMC
General fund property tax: ~$3.4M/yr
Avila increment (DDA-controlled): ~$4.25M/yr
BOMC controls: $3.4M
All new development revenue flows to general fund — elected BOMC controls
Existing general fund revenue: ~$3.4M/yr
Avila city share (general fund): ~$1.34M/yr
BOMC controls: $4.74M — a 39% increase
General fund property tax revenue: 2024 actual ($3,397,612). Avila city increment estimate based on ~$140M assessed value at 9.55 mills = $1.337M/yr. DeKalb County retains its ~$2.91M Avila increment regardless of TAD status — the TAD captures it instead of the County's general fund.
Under Georgia's Redevelopment Powers Law (O.C.G.A. § 36-44), the BOMC cannot dissolve a TAD while "redevelopment costs" — specifically TAD bond debt — remain outstanding. This is the one statutory constraint on early termination.
A review of the public record finds no evidence that the Avondale Estates TAD has ever issued tax allocation bonds. The evidence is direct and confirmatory:
The DDA balance sheet through Q2 2025 shows no bond debt. The TAD special fund holds $1.19 million in unspent increment with no corresponding bond obligation. The city's own published FAQ on the TAD describes it as a "pay-as-you-go" reinvestment tool — not a bonded instrument. The DDA's total liabilities at December 31, 2024 were $170,257, consisting entirely of accounts payable, wages payable, amounts due to the general fund, and accrued compensated absences. There is no bond line. The city's investable funds came from the DJJ building sale, not from TAD bond proceeds.
The legal conclusion is straightforward: with no TAD bonds outstanding and no pledged bond revenues, the BOMC can end the TAD by resolution today. The $1.19 million in the TAD special fund would be returned proportionally to the contributing taxing entities — the city and DeKalb County — as Georgia law requires. There is no bondholder to protect, no pledged security to honor, and no legal obstacle to termination.
The city's TAD FAQ itself clarifies the governance structure: the TAD "was created in 2007 by the Board of Mayor and Commissioners who in turn gave the responsibility for determining how to use those funds to the Avondale Estates Downtown Development Authority." What the BOMC delegated, the BOMC can reclaim — by ending the delegation through the same mechanism it created: a resolution.
Governance precision: TAD increment is not the same as the DDA's general fund. The TAD special fund ($1.19M) flows through city accounts and is earmarked for the DDA to spend consistent with the approved 2007 Redevelopment Plan. The DDA's broader fund ($10.96M total — approximately $6.85M in Georgia Fund 1, $2.95M in Notes Receivable for the Dale loan, and $88K in cash at 12/31/2024) is more autonomously controlled — accumulated from the DJJ sale and investment returns. Both are public money. The BOMC approved the plan that governs TAD spending, meaning it retains the authority to amend that plan or end the TAD entirely.
The argument for ending the TAD — rather than simply letting it expire — rests on a straightforward comparison of what the DDA has demonstrated it will do with public funds versus what the elected BOMC could do instead.
The DDA's documented track record over the period when it controlled significant public funds includes: selling a publicly-owned building below independently assessed market value with no competitive process (the DJJ case); granting a tax abatement that transferred $2.86 million in public subsidy to a foreign private equity buyer with no public notice (the Willis case); loaning $4.175 million to a preferred developer at below-market rates on publicly-owned land with no competitive selection; and accumulating $10.96 million in public funds while spending $0 on the district in 2024.
If the TAD ended before Avila's assessed values are captured, the city's general fund would receive approximately $1.337 million per year in new property tax revenue — a 24% increase in property tax revenue from one development. The elected BOMC could direct that revenue to police staffing, debt service, infrastructure maintenance, or tax relief for homeowners who bore rising assessments throughout the development period.
The DDA already controls sufficient funds to finance any legitimate public infrastructure the Avila development requires. The city's own FAQ on downtown projects estimated the largest single infrastructure need — a parking deck — at $5–6 million. The DDA's current fund balance of $10.96 million exceeds that figure. No TAD continuation is required to fund public infrastructure if the DDA deploys the funds it already controls on a schedule approved by the elected BOMC.
The core question: Should $4.25 million per year in new tax revenue from the city's largest development in decades flow to a fund controlled by seven appointed volunteers — with no budget approval from elected officials, no competitive process for expenditures, and a documented record of accumulating funds rather than deploying them — or to the elected Board of Mayor and Commissioners, who are accountable to residents at the ballot box?
The decisions that will determine the answer are being made now — in DDA meetings and in Avila development agreement negotiations. The public record leaves several material questions unanswered.
What are the terms of the Avila intergovernmental agreement? The February 2026 DDA agenda listed "Avila Update and IGA" as a discussion item. Whether TAD funds or a tax abatement will be offered to Avila's developers has not been disclosed publicly.
Is a TAD extension or new TAD being contemplated? Georgia law permits creation of new TADs. If the Avila site were established as a new or extended TAD, increment could be captured beyond 2032. No such proposal has been announced, but the city's 2017 planning documents, the DDA's active involvement in Avila approvals, and the ongoing IGA negotiations collectively suggest the question is live.
What is the current status and repayment schedule of The Dale loan? The $4.175 million balance appears unchanged through Q2 2025. Residents are entitled to know current payment status, whether any loan modification has been negotiated, and the projected repayment date.
What happens to the $10.96 million DDA fund balance if the TAD ends? Under Georgia law, TAD funds must be used within the district. If the TAD ends before the balance is fully deployed, the disposition of remaining funds should be established by resolution of the elected BOMC — not carried forward indefinitely under DDA control.