A Tale of Two Counties

• Dougherty and Lee counties each face separate challenges with economic development and finding revenue sources.

Valerie Benton & Nathan Cain

ALBANY — Combined, Dougherty and Lee counties represent more than three-fourths of the population of the Albany metropolitan statistical area. Individually, the counties complement one another's strengths and weaknesses. Dougherty's strength lies in its industrial and commercial foundation while its residential population continues to slowly decline. Lee County, on the other hand, has a strong residential base, but is struggling to gain industrial and commercial tenants.

What they share in common are their separate challenges to draw business and industry and to find revenue sources to meet growing demands imposed by rising costs or, in Lee County's case, a growing population.

Lee County officials have their backs against the wall as they consider whether to significantly increase the county's millage rate to offset costs of needed infrastructure.

LEE COUNTY TAXES

Lee County's proposed millage rate increase might be a sign that residential growth is starting to take its toll on the county's bottom line, said one Georgia land use expert.

Jeffery Dorfman, co-director of the Land Use Studies Initiative at the University of Georgia, said that, on average, residential development does not generate enough tax revenue to cover the cost of providing services. Agricultural land and commercial development generate more in taxes than they receive in services, Dorfman said, so a financially healthy community should have a mix of residential and commercial development.

"You need some new businesses to come in with the people," Dorfman said.

Lee County's population has boomed in the past 10 years, making it one of the 50 fastest growing counties in the nation, but commercial growth has not followed the people.

According to Georgia Department of Revenue figures, Lee County's property tax digest in 2004 was 56.6 percent residential. The statewide average was 40.6 percent. Twelve percent of Lee County's digest was agricultural in 2004. The state average was 20.7 percent. Commercial property accounted for 13.7 percent of Lee County's digest, which was slightly more than the state average of 13.1 percent. Less than one percent of Lee County's tax digest was industrial in 2004.

Neighboring Dougherty County's tax digest was 39.2 percent residential, 27.5 percent commercial, 18.6 percent industrial and only 2.4 percent agricultural in 2004.

Now, after eight years without a tax increase, the Lee County Commission has proposed raising the tax rate from 13.95 to 15.95 mils, a move that has brought vocal opposition from residents, who have packed the commission's chambers at the three public hearings held to discuss the change.

The 14.3 percent tax increase would translate into an extra $80 per year for a Lee County homeowner with a $100,000 house.

In May, the commission introduced a $18.8 million budget for the 2006 fiscal year, which is $2.4 million more than the 2005 budget. The budget originally included a three mil increase that would have increased the tax bill for a $100,000 home by $120.

The commission announced at the second public tax hearing Sept. 19 that they were asking for a two mil increase. County officials said they had cut $562,000 from the budget.

That money was earmarked to help pay for extending a sewer line out U.S. Route 82 from just west of Wal-Mart on Ledo Road to Oakland Road.

Lee County Administrator Langford Holbrook said the money cut from the budget would be made up for in a Georgia Environmental Facilities Authority Loan if Lee County Utilities Authority is approved for the loan. The authority has not yet applied for the loan.

The entire project, which will include upgrading the existing sewer infrastructure as well as installing the new lines, will cost about $3 million, Holbrook said. The county is seeking about half of the needed money in grants, and the rest will come from GEFA, he added.

LEE INFRASTRUCTURE

Lee County is studying impact fees as another revenue source to help offset the costs of growth, but they will not be an option any time soon, said Eddie Hinman, a member of the county's impact fee committee.

Hinman said the county had selected the Atlanta-based consulting firm Ross and Associates to do a study on impact fee feasibility, but that the entire process could take up to a year.

The county's lack of sewerage is impeding commercial growth, said Lee County Utilities Authority General Manager Chris Boswell. Commercial growth along State Road 82 has stopped because businesses require sewer service, Boswell said.

The county's water treatment plant has a capacity of one million gallons per day, but treats only 350,000 gallons per day, Boswell said.

"The capacity is there," Boswell said. "The problem is the lines aren't where they need to be."

Winston Oxford, president of the Lee County Chamber of Commerce, said that putting in a business with a septic system is cost prohibitive for many small businesses. With a septic system, one business can fit on an acre of land, Oxford said. Sewer allows for land to be developed more densely, allowing more businesses per acre, and reducing the cost of property for each business.

"If you have sewer available, you can put a half dozen businesses on an acre," Oxford said.

The question of what comes first, commercial or residential development, is much like the old chicken and egg question, Oxford said. People want to live in an area convenient to commercial development and commercial developers want to build where they will have customers.

Despite Lee County's rapid growth rate there still needs to be more households before development along State Road 82 starts to boom, Oxford said.

"It takes a whole lot of households and residential development before a certain type of business will follow that growth," he said.

Oxford said he was certain that all the conditions in Lee County were in place for a surge in commercial development in the next few years.

"I really think Lee County is prime for a commercial explosion in the next ten years," he said.

DOUGHERTY A HUB

Richard Crowdis grew up in Blakely. But he remembers that the place to go for shopping, restaurants and the movies was Albany.

The Dougherty County administrator and other officials say Albany and Dougherty continue to have the advantage of being a hub for business, shopping, health care and education. City leaders are also tapping into Albany's potential to draw more tourists.

Crowdis said the most recent draw to the city has been the result of 10 years of downtown redevelopment that has occurred.

Actual construction did not start until 2000, so it's only been within the past five years that Albanians have seen the opening of the Central Square Government Complex, Riverfront Resource Center, the state Department of Human Resources office building, Riverfront Park, Flint RiverQuarium, I-WERKS Theater, the Law Enforcement Center, and Ashley Riverside town homes and apartments.

In addition, a First Tee golf course and Albany Riverskate skate board park are both near completion along the Flint River banks.

Crowdis says that even with stiffer competition from Valdosta, Thomasville and Columbus, Albany still holds the position as the commercial center of Southwest Georgia. He said Albany continues to attract people from outside the Albany metropolitan statistical area who "look forward to coming to Albany."

"We are the job magnet for Southwest Georgia," said Tim Martin, Albany Area Chamber of Commerce CEO.

According to the U.S. Census Bureau, of the 55,098 people employed in Dougherty County, nearly 21,000 live outside Dougherty County. The largest majority of job commuters — almost 9,000 people — come from neighboring Lee County.

DOUGHERTY GROWTH

But county and city leaders say that while Dougherty and Albany has room for improvement, identifying room to physically grow presents another challenge.

"We can always get better on the economic development," City Manager Alfred Lott said. He cited the need to increase utilization of the Albany Civic Center and to step up the pursuit of grants.

"Retail continues to be strong," Martin said, especially downtown, where "we're really concentrating our efforts."

ATI broke ground on downtown redevelopment and private investors have since followed. Developers such as Phil Cannon, Neil Thompson, Peter Studl and Bob Beauchamp and members of the Beauchamp family have renovated or are transforming existing buildings near the river front. Vacant buildings are being converted into restaurants, entertainment venues and loft apartments.

But Martin would like to see more investors become involved in revitalizing downtown.

"So many cool things are coming together," Martin said.

Martin said one challenge Albany officials have is identifying land for economic development.

"Yes, you always want more (land)," he said. "We're seeing more reuse opportunities."

Buildings vacated by businesses relocating to other areas of the city are opportunities for Martin and other city officials to attract new business to Albany.

For example, after Books-A-Million moved out of its building on Old Dawson Road to the Albany Mall, where Mansour's previously rented space, the building was divided into two retail spaces. Two new retailers to Albany that moved into the vacant space were Ross Dress for Less and Rugged Wearhouse.

Martin said city leaders have also identified a need to develop a $2 million industrial park in East Albany. Sales tax funds have been approved for the park, but Martin would not disclose the location.

Awaiting the outcome of the Base Realignment and Closure Commission's decision regarding Marine Corps Logistics Command Albany put plans for development of the industrial park and other projects in both Dougherty and Lee on hold.

"It did impact some things; some things it did not," Martin said.

After learning that the base was spared the recommendation for closing or realignment, "There was a humongous sigh of relief," Martin said. We've seen a release of pent-up energy. Us not being on that list was huge."

County and city leaders are also waiting to see if Wal-Mart will be locating in East Albany. "It's unknown at this point," Martin said.

"Land for residential purposes has been a challenge for decades," Martin said. "I think the solution was go North."

Dougherty's population of more than 96,000 is down from more than 100,000 in 1980. Only 43 new residential building permits were issued this year, which represents about half of the number issued in the two previous years.

In addition to its industrial and commercial base, Dougherty, unlike its neighbor, has adequately established infrastructure.

Lott, new to Albany, said few cities Albany's size have to provide so many services, such as fire, emergency medical services or zoning. He commended Albany officials for having "done such an incredible job of bringing that into balance."

Lott would also like to see more interest shown in agriculture as an economic source, as well as in attracting more retiring baby boomers.