SANDY SPRINGS, Ga. — Trammell Crow announced plans to begin construction this month on an 8.1-acre redevelopment — Hillcrest — just a block from City Springs off Mount Vernon Highway.
Plans for the mixed-use development include 362 apartments, 30 for-rent townhomes and around 18,000 square feet of retail space with a central plaza and greenspace.
The company’s subsidiary, High Street Residential, and mixed-use developer Third & Urban are expected to complete the project in 2027, according to information from Trammell Crow.
Sandy Springs Economic Development Director Chris Burnett said advancing the project involved a lot of moving parts.
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“This is a big one for us, no doubt about it,” Burnett said. “I want to talk about new project that is really in the shadow of City Springs, it’s on the southwest corner of the [Mount Vernon Highway and Sandy Springs Circle] intersection.”
Currently, the site consists of Sandy Springs United Methodist Church’s Hitson Center, a grass field and a parking lot. Because of the property’s steep grade, Trammell Crow says the development will terrace down from Mount Vernon Highway along Sandy Springs Circle.
The church, which is selling a chunk of its properties on the south side of Mount Vernon Highway, says it plans to use proceeds to fund significant improvements to its primary campus.
Sandy Springs Methodist Rev. Kate Floyd said she envisions that the church’s redeveloped campus will be integral to a vibrant city center and a welcome addition to the community.
The Sandy Springs Development Authority approved a tax abatement proposal at its June 5 meeting, laying out a parking arrangement with the city and Trammell Crow.
Development Authority members said the proposal should come before the Sandy Springs City Council June 17.
The agreement designates 111 parking spaces at Hillcrest for city use through a parking easement, making them free for the first two hours for patrons of City Springs or Hillcrest. Those are separate from around 400 spaces for residential use.
City Councilman Andy Bauman, who serves on the Development Authority, said there were two parts of the project that piqued his interest, whether there would be affordable or owner-occupied housing and how to replace the city’s overflow parking at the site.
Sandy Springs has plans to expand its downtown district — City Springs — across Mount Vernon Highway to Hilderbrand Drive. While those are shelved, the private sector is helping to develop the city’s downtown.
Bauman said his conversations with the developers led him to believe affordable and owner-occupied housing is not an option.
“The good news is our piece of this is the parking,” he said. “That’s what we’re going to have a chance to address is replacement parking at a lot less cost.”
Bauman said the city is getting parking spots and some streetscape improvements at 15 cents on the dollar through the Development Authority’s agreement, which includes a buyout and maintenance cost sharing.
The three-party agreement caps the city’s investment for parking spaces and infrastructure at $4.87 million. The 10-year tax abatement kicks in after construction is completed with 50 percent off the first year with a 5 percent reduction each subsequent year. The realized tax savings is then paid to the city for its parking costs.
Bond documents, required by state law, are expected to be executed by mid-July and total $150 million. In the bond resolution, the city and its Development Authority have no financial obligations.
According to the city, the Development Authority funds desirable economic development projects in Sandy Springs by providing access to capital and other financial incentives. It operates under the direction of a seven-member board with members appointed by the mayor and confirmed by the City Council. Some its largest projects and partnerships include City Springs and Chastain Market.
Trammell Crow says the project will feature a three- to five-story apartment building with a parking garage and luxury townhomes with two- to three-bedroom floor plans. Highlights of the residential portion include a rooftop pool and clubroom, state-of-the-art fitness amenities and a dog park.
Third & Urban partner Hank Farmer said Hillcrest’s retail side will introduce a mix of walkable shops and restaurants with abundant patio and outdoor spaces.
“[It] creates a retail experience that's unique to the market,” Farmer said. “Located adjacent to City Springs, the project sits at the heart of the community in a pedestrian-focused, connected environment that reflects the character and spirit of Sandy Springs.”