Update, Sept. 15: The Gainesville City Council voted unanimously Tuesday, Sept. 15 to approve this property's participation in the Midtown Tax Allocation District.
The Gainesville City Council will vote Tuesday, Sept. 15 on tax incentives for Peach State Bank’s expansion plans in downtown Gainesville.
The bank has purchased the property at 332 Spring St. Southwest, which has previously housed North Georgia Auto Glass and a gas station. The building will house the bank’s mortgage operations and act as overflow space for Peach State’s adjacent Washington Street main building.
Peach State Bank has applied for funding from Gainesville’s Midtown Tax Allocation District, an incentive program that allows developers to use property tax payments toward improvements on the property itself.
The bank purchased the property for $400,000 and plans an additional $291,000 in improvements to get it ready for use. The bank has asked the city for $83,315 in TAD incentives to help pay for several parts of the project, including demolition, parking lot lighting, sidewalks and other site work.
City staff have recommended the bank get $48,000 in funding upfront for demolition, site work, landscaping, parking lot lighting and sidewalks. That upfront lump sum would be paid back through property tax payments. Then, after that amount has been paid back, the bank can keep any remaining increment generated over the next 15 years or when they have received a total of $63,540, whichever comes first.
That recommendation is based on a valuation of $400,000 for the property. The city’s TAD committee recommended approval of the staff proposal at an August meeting.
The Council will have the final vote at its meeting Tuesday at 5:30 p.m. at the city’s Public Safety Complex, 701 Queen City Parkway.