Chamblee Downtown Development Authority

October 22nd, 2013

Chamblee Gateway South

Discussed to-date:
20 year tax abatement with a lease payment to be agreed upon from Chamblee Gateway South to the
Chamblee Downtown Development Authority with the possibility of extending the lease payment
through year 40.
Proposal:
$1,000,000 minimum in lease payments to the Chamblee Downtown Development Authority to paid
in 20 annual payments of the greater of $50,000/year or 10% of what the ad valorem taxes would have
been based upon the annual valuation of the property. Such payments to start in 2014.
Option:
$1,500,000 minimum in lease payments to the Chamblee Downtown Development Authority to be
paid in 30 annual payments of the greater of $50,000/year or 10% of what the ad valorem taxes would
have been based upon the annual valuation of the property. Such payments to start in 2014.
Rationale: If the Chamblee Downtown Development Authority desires to monetize the annual lease
payment income stream the possibility of amortizing a 30 year payment is no different than 20 years
whereas 40 years is less common and may therefore be less likely to be accomplished.