A validation hearing is scheduled Monday in Whitfield Superior Court, which if approved would facilitate the issuance of $30 million in taxable revenue bonds to HMC Holdings Inc.
“In such proceeding, the court will also hear and determine the validity of instruments relating to and providing security for the bonds,” a public notice reads, “including the bond resolution, an indenture of trust, a lease agreement, a bond purchase agreement, a guaranty agreement, a deed to secure debt, assignment of rents and leases and security agreement, a home office payment agreement and a memorandum of understanding.”
Carl Campbell, executive director of the Dalton-Whitfield Joint Development Authority (JDA), said the revenue bonds would go toward the finalization of the Lofts at Hamilton apartment project along Broadrick Drive in Dalton.
“With the completion of the project and the annexation that was redone just recently, the deal was designed to mirror the first deal,” he said. “There were a couple of things that weren’t right, so this is just fixing it.”
The overall price figure, he said, remains the same.
“But just the terms and the timing is kind of what’s being fixed,” Campbell said. “We’re just cleaning that up and validating it to make it correct and everything done the right way.”
Campbell noted that no local government entities are funding the revenue bonds.
“The bond is self-funded, so there is no liability or no risk for the community,” he said. “It is the mechanism in which Georgia state law dictates that we do the tax abatement.”
The completed multifamily development, he said, would consist of well over 200 market rate units.
“It’s a very nice apartment complex and kind of a product that we haven’t had in our community prior to now,” he said. “It’s a new offering in the housing situation, which is good.”
Two of three planned buildings at the site, Campbell said, are already open.
“And have tenants in there,” he added. “My guess is about 60% occupied and growing every day.”
Campbell said the first two buildings received a certificate of occupancy earlier this year.
“The third building is under construction and will be open soon,” he said. “My guess is going to be first quarter of next year that everything’s wrapped up and complete.”
Efforts to bring the multifamily project to fruition, Campbell said, were well underway prior to the outbreak of COVID-19.
“Constraints on supplies, like building supplies and things like that, this project is a little slower than some,” he said. “But world events and economies have kind of dictated that.”
Campbell said a project of its size typically takes about 18 to 24 months before attaining full buildout.
“But this one has been delayed a little bit,” he said.
Heading into 2024, Campbell said the JDA has not pinpointed any particular projects that could be in line for potential bond issuances.
“We are trying to move the needle on things that are not easy,” Campbell said. “Developers do what’s easy, they can make sense of those — so we’ve got some deficiencies in our housing stock, whether it be single-family homes or multifamily apartments.”
By and large, Campbell said the most difficult types of housing to develop are for lower-income and professional demographics.
“That’s kind of the space that we’re trying to assist, because everything else kind of takes care of itself,” he said. “We’ve got a low-income housing project that is under construction and almost complete, it’s called Crow Valley Heights … it will bring approximately 70 units online for low-income workers.”
Then there’s the “missing middle” piece in the local housing stock.
“Working families that want a nice place to live, we’re not talking about exorbitant homes,” Campbell said. “But a nice, quality home that somebody can be proud of … we have kind of a lack of that, and the apartments fit into that.”
Campbell said he’s optimistic the Lofts at Hamilton will “prove the market” for Dalton and Whitfield County.
“We don’t anticipate being involved in multifamily projects going forward, the hope is that the market takes over from here,” he said. “But the economy is an ever-changing thing and we take it one day at a time. But we need to grow our community the right way — we have jobs being created here in all of our industries, they need more folks. So we’ve got to make sure that we have places for people to live and enjoy being here.”
With roughly 100 units already occupied, Campbell said the Lofts at Hamilton is already generating a positive economic impact for the community.
“Some of those folks came from other places in Whitfield County and some did not,” he said. “I know for a fact there are some students at Dalton State College that are living in those units, so those are folks who are not from here living in our community, and of course, they’re spending their time and they’re spending their money … our hope is that they would also find a career and plant their roots here.”