The movie industry in Fayetteville continues to grow with the success of Pinewood Atlanta Studios. Also growing is the amount of property taxes paid.
In 2012 the tax bill on what would become the studio was $9,672.72. Then Pinewood Atlanta Studios happened.
The industrial revenue bonds (IRBs) issued by the Fayette County Development Authority (FCDA) totaling $52 million for the Pinewood Atlanta development on the 288-acre property on Veterans Parkway and the adjacent Rivers Elementary School property, known now as the Pinewood Production Centre, were issued in December 2013. Rivers Elementary was purchased by Dan Cathy’s Rivers Rock II LLC for $5.17 milllion.
Initially worth nearly double that amount when constructed as a school a few years earlier, the recession caused the value of the property, along with real estate in the rest of the county, to plummet.
According to the FCDA leasehold agreement, the studio property and the production centre property would be responsible for property taxes at increments of 5 percent per year over a 20-year period until 100 percent of property taxes are paid each year.
The first property tax bill for the 288-acre Pinewood Atlanta Studios property and the Pinewood Production Centre property came in 2014. That initial year required the payment of taxes equivalent to 5 percent of the value, followed by 10 percent in 2015 and 15 percent in 2016.
While some in the community were vocal about the lack of taxes being paid at both sites, a review of tax bills provided by the Fayette County Tax Commissioner’s office tells a different tale.
What was $9,672.72 in taxes in 2012 became:
• $20,636.82 in 2014 at 5 percent
• $57,238.26 in 2015 at 10 percent
• $139,357.40 in 2016 at 15 percent
Taxes on the 28-acre production centre property showed:
• $3,277.21 in 2014 at 5 percent
• $11,763.70 in 2015 at 10 percent
• $16,452.51 in 2016 at 15 percent
That’s a total of more than $248,723 paid into local government coffers, 25 times more than the tax bill for the undeveloped property in 2012.
It should be noted that, while owned by the Fayette County School System, there were no taxes paid on Rivers Elementary School since the school board levies, but does not pay, property taxes.
Aside from the percentage of increase each year, the development continues to expand on the studio property and eventually on the production centre property, adding more taxable value to the once-vacant land.
Not included in the IRB is the property on Veterans Parkway across from the studio known as Pinewood Forrest, with construction of the first homes expected to begin in 2017 and the boutique hotel opening in 2018. That 234-acre mixed use property, once built-out in the coming years, will add a wealth of taxable value to the property.
