Smyrna City Council Approves Purchase Agreement With School Board

The Smyrna City Council on Monday night approved the authorization of the Smyrna Downtown Area Development Corporation (SDADC) and the to enter into a purchase agreement with the Cobb County Board of Education for 7.45 acres located at 2525 Ward Street.

The purchase agreement is for $2.9 million, or $392,000 per acre.

In July 2008, SDADC purchased the 10.1-acre property, the , for the purpose of changing the future use of the property and to obtain right-of-way for a road that is part of area redevelopment plans.

An $8,195,000 bond issuance by SDADC was used to purchase the property with the actual cost of the land going for $4,636,000. Apartment renovations, capitalized interest, debt service reserve fund and the cost of issuance made up the remainder of the bond issuance.

The property is adjacent to the Belmont Hills redevelopment project and will be used as part of school near the downtown area. Part of the property will border the new Atlanta Road-Ward Street connector and will be converted to athletic fields and open space to be utilized by both the new school and the city.

Smyrna Commons is scheduled to be razed sometime next year and the new road is part of Cobb’s 2011 Special Purpose Local Options Sales Tax referendum that will be voted on next month.

The council approved the motion by a 4-1 vote Monday night with Councilman Wade Lnenicka voting against, and Councilmen Ron Newcomb, Jimmy Smith and Pete Wood joining Councilwoman Teri Anulewicz voting for. Councilman Mike McNabb and Councilwoman Melleny Pritchett were not present due to illness.

“This is a great partnership that we’re fixing to become involved with the school board by building the elementary school at this location,’’ said Smyrna Mayor Max Bacon. “We said all along that we had to have the property. We bought it in ’08 and I’m excited about what’s going to happen there.’’

Not everyone was pleased, though. Alex Backry, a former city animal control officer who is running for mayor in 2011, communicated his displeasure at last week’s public forum on the new school.

“Two-and-a-half years ago Aug. 1, the city, without any referendum, bought the Smyrna Commons for $8,195,000,’’ Backry said. “This past December, they paid $853,000 in interest on the loan and now they’re selling it for $2.9 million. That’s a $5.3 million loss for the taxpayers of Smyrna.’’

Smyrna City Administrator Eric Taylor told Patch that the city agreed to sell the property at that price because it was beneficial to both parties. Based on feedback from Smyrna residents and the fact that a new school would raise property values in the area, a new elementary school seemed to be the best option for the property, Taylor explained.

“The citizens wanted us to help do something for the schools and this was our chance,” he said.

On Monday night, Gordon Mortin, the bond underwriter for the city and for SDADC, praised the visionary approach the city council took in making the 2008 purchase of the apartments located next to Campbell High School.

“The apartments were run down and were a risk to the student population,’’ Mortin said. “Roughly 90 units (out of 152) were not inhabitable, which was just an opportunity for any problem at some point in the school system.’’

He explained further, “They took control of the property and changed the use of the property. With the school system you’re going to get a joint use agreement and get access to those athletic facilities so as the school system doesn’t need the property for building expansion, which is not in the current plan. I think it’s a great deal for the city.’’

The new school was approved by voters in 2008 as part of the school capital projects program funded by a SPLOST. The school board voted last week to buy three required parcels of land and hire an architectural firm for the new school. The city will retain 2.7 acres for right-of-way for the Atlanta Road-Ward Street connector.

“Apartment density gives the highest value to the land,’’ he said. “So changing it from apartments to some other use ran a probability that you would not get everything back that you paid for. But at the same time, the financing was set up so you could sell the property, keep the remainder of the financing in place or pay off the financing.’’

Mortin went further and read from a resolution passed by SDADC that “requests the city approve and support execution by SDADC of the agreement…And upon closing, SDADC will use monies it currently has, which is a little over $1.2 million, plus any payments received pursuant to the agreement, to pay as much principal down on the bonds as can be paid down. And they’ll also make whatever of those revenues necessary for the removal of the units that are in the right-of-way.’’

Before the council voted, Newcombe stressed how “strongly’’ he felt on the matter and how important the new school would be to the city.

“Question: what is the value of a new elementary school in Smyrna,’’ he said. “How much is it worth? Four million. Answer: priceless. When you do the actual math over say a 10-year period, this will cost each resident of the City of Smyrna approximately $9.37 per year. Is it worth $10 a year to have a new elementary school in the City of Smyrna?

“If we do not partner with our schools to help our schools, then I am 100 percent certain that we have not done enough.’’