Atlanta Development Authority Withdraws $2 Million Tax Break for Buckhead Developer

By Jonathan Shapiro

August 29, 2011 – After a lengthy effort from a taxpayer protection organization, the Atlanta Development Authority is withdrawing a significant tax incentive package for a luxury apartment development in Buckhead.

Critics of the two million dollar tax break say it's simply unnecessary.

"In giving such tax abatement to a 370-unit luxury apartment building adds glut to an already glutted market," said John Sherman of the Fulton County Taxpayers Foundation.

He says as a matter of policy, tax breaks should only be given to projects that are in the public interest.

Atlanta City Councilman Howard Shook put it more bluntly.

"This is Buckhead. We don't have to bribe people to do projects here at taxpayer expense," said Howard

It's why Sherman's organization filed a lawsuit against the Atlanta Development Authority and Fulton County Superior Court followed by issuing subpoenas to Authority board members requesting financial information on the deal.

Before responding to those subpoenas, the Atlanta Development Authority abruptly withdrew the tax break plan last week before a Fulton judge.

Now Councilman Shook wants to know why the tax break was given in the first place - he says he was kept in the dark about the original agreement.

The agreement was approved with near unanimous consent from the ADA board, which includes Mayor Kasim Reed.

The Mayor, nor officials at the Atlanta Development Authority, could be reached for this story.