ATLANTA – Local development authorities have been at the heart of the biggest business deals in Georgia, including the record-breaking incentives that lured electric-vehicle manufacturers Hyundai and Rivian to the Peach State.
But such huge incentives packages as the $1.8 billion that went to Hyundai and the $1.5 billion doled out to Rivian have given rise to concerns that local governments and schools are losing massive amounts of tax revenue to development authorities without sufficient state oversight or demands for transparency.
A state Senate study committee has begun a series of meetings to look for ways to require more accountability from development authorities without sacrificing the jobs they help create.
“Our objective is to support economic development in this state,” said Sen. Max Burns, R-Sylvania, the study committee’s chairman. “[But] it’s important that we understand the ramifications of our development authority decisions … and the impact they have on our state.”
About 1,300 local government authorities have cropped up across Georgia since 1995, when the legislature passed a law authorizing cities and counties to form authorities, Kyle Hood, director of the state Department of Community Affairs’ Community Development Division, told members of the study committee late last month. Of those, 575 are development authorities or downtown development authorities, he said.
Sen. Steve Gooch, R-Dahlonega, who formerly served as a Lumpkin County commissioner, said local development authorities are critical to economic development when corporate prospects come calling.
“Without these authorities, county governments would have to go to taxpayers and put out a referendum,” he said. “It’s the only development tool they have.”
Despite the jobs development authorities help generate, the General Assembly has put some controls in place to monitor their activities.
In 2018, lawmakers passed a bill requiring authorities to register with the state annually and undergo financial audits.
This year, the legislature passed a measure capping the per-diem allowance for directors of development authorities in counties with populations of 550,000 or more. The bill also gave the state ethics commission jurisdiction to handle complaints aimed at authority directors.
But state Rep. Mary Margaret Oliver, who sponsored this year’s legislation, said more needs to be done.
Oliver, D-Decatur, introduced a bill last year giving cities, counties, and school districts the right to participate in bond validation hearings. However, the bill failed to gain traction in the House.
Bonds typically underwrite incentives packages development authorities offer companies they’re trying to attract. Once approved by a judge following a hearing, authorities can issue bonds to purchase land for a project or finance construction, resulting in either full or partial abatement of property taxes.
“Abating school taxes without schools being part of the discussion is problematic,” said Oliver, who despite being a member of the House is on the Senate study committee.
Oliver’s bill giving local governments and school districts the right to take part in bond validation hearings has the support of the Association County Commissioners of Georgia (ACCG), which advocates on behalf of counties at the state Capitol.
Kathleen Bowen, associate legislative director for the ACCG, said development projects that contain a housing component are particularly concerning because they bring residents who rely on taxpayer-funded services.
Tax abatements deprive local governments and schools of the revenue they need to provide those services, she said.
Oliver said her efforts are not aimed at the Hyundai and Rivian incentives packages.
“I think those are major state-controlled projects,” she said. “My focus is more on the day-to-day [offering] of tax abatements without much discussion or accountability.”
While Oliver’s bill didn’t pass, Bowen credited the lawmaker’s push for the legislation with drawing attention to the issue. That focus could pay off during next year’s legislative session, Bowen said.
“There’s going to be robust discussion on tax abatements. I consider that a win,” she said. “These deals need to be for the public good. It’s up to those affected by the taxes to be part of the conversation.”
This story is available through a news partnership with Capitol Beat News Service, a project of the Georgia Press Educational Foundation.
ATLANTA – The risk of a fire on Cumberland Island from a launch failure at a proposed commercial spaceport in Camden County is “so low as to not be credible,” according to a new study.
ARCTOS, an engineering consultant with more than 60 years of experience in launch and reentry risk analysis, found only two scenarios in which a failed launch could result in a fire on Cumberland: a low-altitude breakup resulting in a fireball or debris hot enough to cause a fire.
In the first case, according to the study, a mid-air explosion could not create a fireball large enough or lasting long enough to cause a ground fire. In the second, the likelihood of debris hot enough to cause a fire is low.
“Opponents of Spaceport Camden have said that ‘[their] biggest concern is fire’ that ‘destroys cottages and the natural environment, and possibly kills or injures inhabitants,’ ” said Gary Blount, chairman of the Camden County Commission. “The ARCTOS study conclusively proves that these fears are unfounded.”
The county has been the main driver behind Spaceport Camden as a potential economic engine for southeastern Georgia and has spent $11 million pursuing it.
The project cleared a major hurdle late last year when the Federal Aviation Administration approved a launch site operator license authorizing up to 12 small-vehicle launches per year.
But the spaceport’s supporters have suffered two significant setbacks this year. In March, Camden County voters overwhelmingly rejected a referendum that would have allowed the county to buy a 4,000-acre site to house the facility.
Late last week, Union Carbide, which owns the site, announced it no longer intends to sell the property to the county.
Kevin Lang, who owns property on adjacent Little Cumberland Island, called the study a “red herring” by Spaceport Camden supporters to divert attention from the obstacles blocking the project.
“I question the timing,” he said. “It looks like this is an attempt to distract the public from the more relevant news.”
Lang also questioned the study itself. He said ARCTOS focused on an unrealistic launch trajectory.
“They launch the rocket almost straight up … to minimize the dwell time over Cumberland Island,” he said. “There’s never been a rocket launch from Cape Canaveral with that trajectory that we know of. …The normal pattern would be flatter.”
“Rockets do launch and explode,” added Dick Parker, another Little Cumberland Island property owner. “That’s why in the United States, we don’t launch rockets over houses.”
Despite the referendum, the county is continuing to pursue the land deal through an existing contract with Union Carbide. The case has landed in the state Supreme Court, which has set oral arguments for Aug. 23.
This story is available through a news partnership with Capitol Beat News Service, a project of the Georgia Press Educational Foundation.
ATLANTA – Opponents of a planned commercial spaceport in Camden County will get a chance after the holidays to make their case.
A judge in Glynn County granted a temporary restraining order Tuesday blocking Camden County from buying the 4,000-acre tract intended as the site of Spaceport Camden.
County officials said Superior Court Judge Stephen Scarlett’s ruling doesn’t change any plans for the spaceport.
“Camden County never intended to purchase the Spaceport Camden property before the holidays,” Spaceport Camden spokesman John Simpson said. “The decision by Judge Scarlett moves this issue past the holiday season, and we look forward to presenting our side to the court at that time.”
Scarlett has scheduled a hearing on Jan. 5 to take up a motion for a permanent restraining order blocking the project.
Camden officials have been working on the planned spaceport for more than five years. They gained a major victory on Monday when the Federal Aviation Administration (FAA) issued an order approving a launch site operator license for Spaceport Camden.
Supporters have touted the project as a major jobs generator. The spaceport has been endorsed by Gov. Brian Kemp and most of Georgia’s congressional delegation.
But opponents say firing small rockets from Spaceport Camden over populated areas of Little Cumberland Island would pose a major safety risk. They cite documents submitted by the county that project a likely 20% failure rate for the small rockets that would be launched from the spaceport.
Other interested parties that have expressed reservations over the project include the National Park Service – which operates the Cumberland Island National Seashore – officials at the U.S. Naval Submarine Base at Kings Bay and environmental organizations worried about the spaceport’s impact on a fragile coastal ecosystem.
The court case is being waged by opponents looking to force a voter referendum on the purchase of the launch site property.
Monday’s “record of decision” issued by the FAA isn’t the final say on Spaceport Camden. If the project survives the court challenge and moves forward, each launch would have to be approved separately.
Camden County is planning up to 12 launches per year from the spaceport.
This story is available through a news partnership with Capitol Beat News Service, a project of the Georgia Press Educational Foundation.
ATLANTA – A planned commercial spaceport in southeastern Georgia has achieved a major milestone.
The Federal Aviation Administration (FAA) issued a long-anticipated “record of decision” Monday approving a launch site operator license for Spaceport Camden. The license authorizes up to 12 small-vehicle launches per year.
“In the 20th century, Camden County was declared the ‘Gateway to Space,’ ” said Steve Howard, Camden County administrator and project lead for Spaceport Camden, referring to the county’s role as a rocket testing location and alternative launch site for the Apollo program.
“With this license, we have retained that title again in the 21st century. … Georgia is part of the new space race, and we will become one of the leaders.”
“It has been long time coming, but Camden County is immensely proud of this accomplishment,” added Camden County Commission Chairman Gary Blount. “With this license … we are no longer a one-dimensional economy solely reliant on the brave sailors and contractors at Naval Submarine Base Kings Bay for economic prosperity.”
Camden County officials and other backers of Spaceport Camden – including many of Georgia’s top political leaders – have been working for more than five years to get the project off the ground.
They have pitched Spaceport Camden as an economic engine that ultimately could create up to 2,000 jobs and help sway a new generation of aerospace engineers, many graduates of Georgia Tech, to remain in the state while pursuing their careers.
But the project has been beset by either concerns or outright opposition from a host of parties, including property owners on Little Cumberland Island – which lies in the path of the planned launches – environmental groups, the National Park Service – which operates the Cumberland Island National Seashore – and the U.S. Navy.
Among those expressing reservations is U.S. Sen. Raphael Warnock, D-Ga., who asked the FAA in a letter last May to slow down its review of the project.
Among other things, the letter cited a decision to change the project’s design from launching medium-to-large rockets to small rockets.
The county’s revised application revealed that 20% of small rockets launched from Spaceport Camden would likely fail, a much larger failure rate than would occur with medium-to-large rockets, Warnock wrote.
“Virtually from the start, the FAA’s review of Spaceport Camden has been fraught with factual mistakes and legal errors,” said Brian Gist, senior attorney for the Southern Environmental Law Center. “We will carefully review the FAA’s decision to ensure that it fully complies with all applicable laws.”
Some of Spaceport Camden’s opponents have gone to court seeking an injunction to stop the project until a voter referendum can be held on whether the county can buy the property where the spaceport would be located. A ruling could come early next year.
Despite granting the operator license, the FAA still must approve each individual launch separately.
George Michael Troup and his brother Robert built Rosemont Plantation in the early 1800s.
ATLANTA – The Georgia Board of Natural Resources voted Tuesday to accept the donation of more than 3,000 acres of pristine habitat in Treutlen County.
The Rosemont Plantation was built in the early 1800s by brothers George Michael and Robert Troup. George Michael Troup served as both a governor and U.S. senator from Georgia.
The land fronts the Oconee River downstream from the Riverbend Wildlife Management Area and is home to both longleaf pines and a gopher tortoise population.
The property was recently appraised at more than $3.9 million.
The state Department of Natural Resources has been working with the owner for the last couple of years to acquire the property.
The proposed donation still must go before the State Properties Commission before it can be finalized.
This story is available through a news partnership with Capitol Beat News Service, a project of the Georgia Press Educational Foundation.
