Auburn Economic Development Endorses Downtown Project
Article by Kathryn Bassett | KPC News | October 21, 2020
AUBURN — The Auburn Economic Development Commission voted unanimously Tuesday to recommend establishing an economic development target area at the site of what will become a new three-story office building in downtown Auburn.
David Hefty, on behalf of 3:16 Real Estate, has received development plan approval for a building to house office and retail tenants at 200 E. 7th St. on the northeast corner of the courthouse square.
Credent Wealth Management, now located at 112 E. 7th St., has outgrown its space and will be the anchor tenant for the new 30,000 square-foot building. Hefty is the chief executive officer and co-founder of the investment company.
Declaring the site an economic development target area allows 3:16 Real Estate to seek a property tax phase-in, City Attorney Erik Weber explained.
Final approval of the economic development target area is up to the Auburn City Council, but a recommendation first must come from the Economic Development Commission, Weber said.
According to a resolution approved by the commission, 3:16 Real Estate will seek a 10-year property tax deduction or phase-in. Weber said an initial application indicates more than $3 million in annual salaries will be located downtown, including retained jobs and new jobs.
Weber said Hefty’s company has indicated it will retain 36 current jobs and add an estimated 15 new jobs.
DeKalb County Economic Development Partnership Executive Director Anton King said the building will have an estimated capacity of 100 people.
Based on that figure, King said, over a 10-year period, it is estimated the economic impact of the project could total $251.2 million in sales across all sectors throughout the Auburn area.
The economic impact of 100 employees on full- and limited-service restaurants would be $7.5million over that 10-year duration, King said. The economic impact on hotels would be $1.97 million, he added.
Weber said employment opportunities within the building would be “white collar jobs.”
“We haven’t even looked at the income tax impact of that,” Weber added. “That’s probably pretty significant.”
Commission President Mike Watson, who also is a city councilman, noted that recent investing in buildings by companies such as ContiTech and Team Quality Services, and now 3:16 Real Estate,“ really says a lot about what we’re doing here.”
Article source: https://www.kpcnews.com/thestar/article_4b66a951-4ed3-5470-bf24-bbf6f692e077.html