Writer: James Swift
Published November 2, 2022
The Daily Tribune News
Members of the Development Authority of Bartow County (DABC) voted Oct. 28 to approve a series of payment in lieu of taxes (PILOT) distributions by the authority to the County government, Bartow County School System and the City of Adairsville.
"This is tax time, so the authority — just like the cities and the County — are collecting the PILOT payments," said DABC legal counsel Boyd H. Pettit. "Those are calculations that Dana Shellhorse and the department give us, and then we bill these companies for these PILOT payments through the development authority — checks come in and they go into our processing account, which is a separate account of the authority, and then once those funds are collected then the distributions are made, again, according to the schedule of agreed payments."
Pettit said he expects the distributions to likely be made sometime in December.
"We try to make them before the end of the year," he said.
Bartow County Commissioner Steve Taylor said the companies making the PILOT distributions do not pay property taxes to the local tax commissioner.
"Those payments come here because of the way they do the bonds," he said. "They're still paying taxes, only it's paid through a PILOT payment … Steve Stewart doesn't distribute the money, Boyd's office, the development authority, you guys distribute the money."
Pettit said the authority is close to "closing out" on the collections for the County school system.
"Because we've gotten now to where the PILOT distribution payments, the PILOT payments on more of the more recent projects, did not have any abatement at all in connection with the schools," he said. "I would say that within the next two years, or maybe three years, the authority will only be distributing back to the County or back to the City, in the case of Adairsville."
All of the collections, Pettit said, flow into the respective governmental entities' general funds.
"No restricted revenues at all comes back to us," Taylor said. "And if there's a tax allocation district [TAD], it'll take care of the TADs."
Pettit noted that the titles to the facilities making PILOT distributions are held in the name of the DABC and are leased back to the companies.
"That's what makes them tax-exempt," Bartow County Administrator Peter Olson responded.
After the bond is retired, Taylor said the title goes to the company and they begin paying taxes to the local tax commissioner.
"I will periodically have deeds drawn from the development authority to XYZ company," Pettit said. "Once their bonds are paid off, their abatement period is complete. Then there will be a quitclaim deed signed by the authority back."
The total monetary amount of those PILOT payments, however, was not discussed at the Oct. 28 public meeting.
At the same gathering, the DABC voted to approve the execution of a security deed amendment and leasehold for AL7, LLC.
"Better known as Vista Metals," Pettit said. "They're a California company, they have continued to expand, they have continued develop up there … this is within the existing bonded amount where you approved your last bonds for them, but they amended the security deed to draw down some additional funds and the bank asked us to sign an acknowledgement of that."
The board also approved the execution of a LakePoint Sporting Community parking lot easement substitution.
"We have the indoor facility, it had provisions for parking spaces," Pettit said. "The indoor facility is on lot five, and the provisions is that within lots one, two, three and four that there be 409 spaces made available to the indoor."
Pettit said the board was asked to remove the parking requirements on one of the lots.
"This would be three, which is directly in front of the indoor," Pettit said, "where they're looking at some sort of either school, some sort of physical thing."
Pettit said he thinks it would be "beneficial to the community" to see the lot developed.
"It's been fenced in and used some for parking, and now, not much," he said.
The DABC also approved the first and second series of 2022 solid waste disposal facility revenue bonds associated with a major upgrades project by Georgia Power Co. at Plant Bowen.
"Thinking back a little bit to about 2015, this authority entered into an inducement resolution with Georgia Power Co. in connection with pollution control bonds," Pettit said. "They have gotten an extension each year through the Department of Community Affairs for the tax-exempt bonds. And when I say 'tax-exempt,' I want to make sure everybody understands we're not talking about real estate taxes, we're talking about the tax-exempt bond itself, that the person who buys that bond or who receives interest payments in connection, much like you get through a bank account. Those interest payments are not taxable for State income tax purposes."
Pettit noted that the inducement resolution was modified earlier this year to authorize up to $230 million in bonds.
"They have since gone to market, they've determined that they want to issue $200 million — $100 million in series one, $100 million in series two."
The reason for the two series, Pettit said, is because there are two buyers.
"Otherwise, it just would've been one series of bonds," he said. "We're now at the final stage of approval of what's called a supplemental resolution … it is clear that these are not the obligation of the authority, they are not the obligation of the city, any city, the County or the State. The proceeds or the repayment of these bonds are solely the responsibility of Georgia Power Co. or Southern Co."
The board also voted to approve the dissolution of a DCA EDGE grant checking account related to the Chick-fil-A Supply project, as well as the approval of a $1,000 payment to Williamson and Co. CPAs related to an audit of a DCA REBA grant related to the Rumi Realty I/Loloi Rugs project.
"We drew down a portion of that grant, probably two and a half years ago," Pettit said of the latter item. "It was a $250,000 grant, they drew down about $231,000 ... in order to make the second draw request, which is roughly $19,000 left, the State just requires that we have an audit done."
The DABC also approved a $250 payment to the Carl Vinson Institute of Government for development authority training for new member Jessica Weaver.
"I appreciate Jessie being willing to serve," Taylor said. "It's not a good old boys system that's sitting here running things — we appreciate you serving and being a willing servant for the community."
