The Happy Math of Converting a Parking Lot to Housing
The exciting proposal to turn a large stretch of Downtown Atlanta surface parking into over 400 apartments is getting closer to a potential construction start. The property is located near Centennial Park, about three blocks west of Peachtree Street.
I’m happy about the added residential vibrancy this will bring to a walkable, transit-served area. More people on the streets 24/7 will be a great step in the right direction for this touristy section of Downtown that tends to be fairly dead on nights without major events happening.
But another big plus for the project involves math. When this ugly surface lot gets converted to apartments (fingers crossed — don’t want to jinx the proposal), the city will multiply its tax revenue on this parcel significantly. How significantly? Double? Triple? Read on — the answer is in this news article (emphasis mine):
“the property currently generates only $92,000 a year in property taxes but will produce eight times that amount during the first year after the project is completed.”
That’s right, a low-rise apartment building is going to contribute eight times greater amount of property tax to the city than a parking lot. Add in the economic boost from the mere presence of people living here — customers for nearby businesses, new MARTA riders for nearby stations — and you’ve got an incredible improvement on multiple fronts from just a single parking-lot conversion.
And we’ve got a lot more parking lots waiting to see that kind of return on investment, y’all. Let’s keep making good things happen.
Throwback Thursday! I love this photo – big thanks to my neighbor Ryan for sharing a wonderful 1970s pic of a MARTA bus in action. It’s picking up passengers on West Peachtree Street in Downtown Atlanta.
This stretch of road is actually closed now. These days, the space in front of this Peachtree Towers condo building is taken by Hardy Ivy Park.