Chick-fil-a Opens on Ponce

Yall, I love to share more good news in Old 4th Ward neighborhood in Atlanta. For context, if you have been following me you have seen my tour of Ponce City Market (PCM) during my REAP Cohort with a colleague working at Jamestown which is the lead developer for the project and vision. That compounded with the Beltline has made it an economic anchor for the area.

I always wondered why there wasn’t a CFA close by so I was happy and surprised I drove by and saw the construction for what felt like the corner store gas station / Popeye's overflow and eventually realized this was going to be a new CFA. I couldn’t be more excited….until today when I found out that the operator is a young black man.

If you a nerd for numbers like me this is the 6th location in x square miles. BLah blah blah.

Although I have not been to the location yet, I can say

Rockefeller Group Plans New Tower for Atlanta's Skyline

Building skyscrapers has always been my childhood dream. Before I knew what a career in commercial real estate looked like, I knew I wanted to be a successful business man in my big office high in the sky of my iconic sky scraper. After the recent pandemic and the impact it had on the industry, I started to wonder if we would see a dramatic decrease in the construction of skyscrapers.

Most markets have taken a substantial hit but some, like Atlanta, have shown a strong resilience. This you can tell as you stand anywhere in the city and see cranes in every direction. Towers have been planned in almost every part of the city, from CIM’s hotel and residential towers in Downtown’s Centennial Yards to the collection of buildings that have peppered West Midtown.

The announcement of a new residential tower in Midtown Atlanta comes as no surprise with the enormous growth and increased residential and office demand the city has experienced recently. New York-based Rockefeller Group acquired the 1.1-acre site for 1072 West Peachtree, formerly a U.S. Post Office location, in 2020 for $25 million. The city of Atlanta approved permits last week for Rockefeller’s 1072 West Peachtree St. The proposed 733-foot tower would be one of the 10 tallest buildings in Atlanta and would include 212,000 square feet of offices, 350 residential units, and ground-level retail, according to the developer.

How Tyler Perry and His Media Empire Have Amassed Over 360 Acres in Atlanta

It doesn’t take much to see how Atlanta’s real estate market has been on fire. The “City in the Forest” has seen resilient growth through the pandemic. In addition to the red hot residential market, the commercial market has seen certain sectors gain momentum as well. One industry that has had a wide impact on the Atlanta market has been tv and film.

You can’t mention Atlanta’s ability to attract the tv and film industry without mentioning Tyler Perry. Tyler Perry has been able to create a media empire that has made him a force in the industry and his decision to plant his flag in Atlanta has started a trend that other studio and production companies have followed. So much so that his efforts have led the charge in Atlanta becoming the "Hollywood of the South". For years his influence has brought other major players to the city and his recent acquisition and development of the old Fort McPherson site not only confirmed the magnitude of his status in tv and film but also commanded the real estate community's attention. 

We first heard of the initial transaction back in 2015 when it was announced that Tyler Perry would be purchasing one of the largest U.S. military command centers only a few years after the U.S. military decided to close it down. However, this wasn’t Perry’s first rodeo in large real estate transactions. He sold the massive Greenbriar site (which was his previous headquarters) to his mentee, Ozzie Areu, who served as President of Tyler Perry Studios. I think it’s worth noting that the buyer of the remaining 90 acres from the initial Fort McPherson transaction was the renowned T.D. Jakes.

I also think it’s worth noting that the visionary has already spent close to $250 million, with plans for another $200 million in development for the existing campus alone. The recent acquisition of 37 acres expands his studio footprint to over 360 acres and only solidifies the rank as largest film production studio in the country. Let that sink in! But wait…there’s more. The best part is it appears the mogul already has a vision for the new addition to the campus. His plans to add an entertainment, retail, and restaurant district confirms his long term vision for that part of the city and the growth of the industry. Through his leadership, I believe the city has benefitted tremendously. The increase in presence and capital invested by the tv and film industry has made Atlanta's economy even more robust. 

Interesting Fact:

A young, black, up and coming Army officer was promoted to general and commanded the Forces Command at Fort McPherson, Georgia in 1989 before being appointed to Chairman of the Joint Chiefs of Staff later that year. While he was in Atlanta, Colin Powell was introduced by Vernon Jordan to a successful black developer. Such introduction would grow into a great personal friendship. That developer was Herman J. Russell.

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Federal Gov’t Sends $600MM to City of Jackson for Water Infrastructure

TLDR: Congress approves $600MM headed to Mississippi’s Capital City, Jackson to be used for capital improvements for the city’s water system. But the timing of the impactful legislation is contrasted by escalating problems with the city’s water system as citizens experience a boil water notice and low pressure challenges on Christmas Day.

Jackson, Mississippi has been experiencing a rush of attention for a myriad of reasons this year but one in particular is not a source of pride for those that share a love for Jackson. The challenges that ultimately lead to the failures of the water treatment and distribution systems in Jackson have been brewing for quite a while and didn’t go over well on the national news circuit. Although Mayor Lumumba and Governor Reeves responded as if this would be a joint effort with utmost urgency to provide a solution and stability, the situation appeared to be escalating and heading in the wrong direction as press conferences got tense and the unified approach deteriorated. For many, watching it play out on local news was tough to watch and reached a low when Gov. Reeves was captured on video at an event in Hattiesburg stating it was, “a great day to not be in Jackson.”

Both appeared to have a different idea about what would be the best path forward as Gov. Reeves expressed a state takeover of the city’s water system was on the table meanwhile Mayor Lumumba made it clear capital investments to improve the system was the best way the state could help. Mayor Lumumba has stated several times that it would require close to $1 billion to address all the needs associated with the city’s water system and his office has been diligent in securing the support and capital needed to restore Jackson’s water system. For a while it appeared that Mississippi’s capital city was on a similar path as Flint, Michigan but with the support of the NAACP and some influential voices on capital hill (ironically some of Mississippi’s own representatives did not support this bill), a bit of light could be seen as one of the last bills for this congress was announced.

The omnibus spending bill is hearty and implements a number of changes and allocations worth reviewing separately but one that caught our attention is the $600,000,000 that was allocated to the City of Jackson. This bill would be a major step in the right direction by providing the necessary resources and tools for the independent third-party manager, Ted Henifin (assigned by the Department of Justice earlier this year), to oversee the city’s compliance with the EPA’s requirements. Majority of the funds are earmarked for capital improvements with the remainder reserved for technical assistance and training.

Of course these resources don’t come without strong oversight by the EPA who will produce an annual report to the House and Senate until the funds have been obligated.

Jan. 2023 - Update (1/28/23):
Earlier this month Mayor Lumumba hosted a press conference with Henifin to announce the passing of the bill that will send $600MM in federal dollars to Jackson. In the same press conference he announced that through other efforts his office has been able to raise another $100MM dollars in grants and funding.

Just this week Henifin released the fiscal plan that outlines the timeline, budget, and strategic actions for addressing Jackson’s water infrastructure and customer experience. There were two points in the plan we thought would be worth sharing:

  • Water Meters & Bills - Henifin seems to understand the public has completely lost faith in Jackson’s metering system. Instead of fighting the uphill battle to restore the public’s confidence, he proposes a system of billing based on an assessed value. "For some, it will be high, but for many, it will be low," Henifin said. "We know we can generate the revenue we need with this particular model." Henifin said the assessment plan will generate $20 million a year in capital improvements money year after year.

    This is something we have experienced first hand as we push forward with our development plan for our Jackson portfolio. We received new meters but have still experienced incorrect bills with no service.

  • Debt - Henifin plans to use $290 million to pay off existing debt. Although it only costs about $50 million to operate the water and sewer system, there is an additional $23 million in debt that is added to the balance sheet. Paying off this debt would remove that burden while still leaving enough resources to put toward capital improvements.

City of Jackson Resolution to Approve New Stadium for JSU

As you may know, the City of Jackson’s City Council has had a full agenda as of late. We can start with the recent water crisis that escalated to the point that the governor declared a state of emergency which garnered negative national attention and the arrival of the EPA Administrator. Concurrently, there has been an ongoing saga with Richard’s Disposal where a stalemate to approve a long-term contract for trash pick-up escalated to an existing federal lawsuit.

But this past Tuesday they have been able to divert the attention of the masses with a resolution to support the construction of a new football stadium for my dear ol’ college home, Jackson State University (JSU).

Before we get too carried away, let’s discuss the facts and make them plain….

  1.  The city council’s resolution is simply a formal way for the city to show their support of a new stadium and by no means indicates that a new stadium is on the way.

  2. In this resolution it was also made clear that the city does not have a plan, nor will they be providing the financial support for this development.

  3. The effort and initiative to get JSU a new stadium dates back to the 70s when the on-campus stadium was demolished, and The Vet became what was supposed to be the temporary home for JSU Football.

    So, the notion that this is a result of Coach Prime is totally false and mischaracterizes the statements made by councilmen Foote and Stokes on their effort to utilize this as a way to encourage Coach Prime to stay on staff.

  4. The current rendering and efforts are actually a result of previous administration’s (specifically Dr. Meyer’s administration) master plan for the growth and development of the university.

  5. A new stadium would come from the STATE. That means the state legislature AND the governor would have to be behind this effort (Yes, the same governor that has not supported the city’s request for support with the water system). Furthermore, Gov. Tate Reeves has been on record stating, “I don’t even like the state building stadiums with general fund tax dollars. I’m not really excited about Jackson State building a football stadium.”

  6. Beyond state support and approval there is also the IHL to deal with as they control the university’s ability to enter into a legal agreement for the construction of a new stadium.

A lack of understanding amongst the JSU community in how government works and the levers that control the fate of this has become abundantly clear to me. I simply intend to foster a healthy and educated dialogue so that we can align as a community and understand how we can possibly influence this opposed to wasting energy in confusion.

Let me start with my own stance on the matter: I believe JSU should have its own stadium and it should most definitely be on campus.

The foremost challenge with this effort has been getting approval through the state legislature. Why? Because of the location. And if you think the debate around the location isn’t largely charged by the economics (money) of this development then you aren’t very clear on how commercial development works and the massive value/impact it can bring. Why else would there be a reason to NOT put the stadium on campus? Seriously. What other state institution in MS don’t have an on-campus stadium?

I believe the city council’s stated intent to use this as a means to keep Coach Prime at JSU is distracting. If I were in a position to influence the real estate development for JSU, thee most pressing matter is housing, not a stadium. The stadium is important, but housing is urgent. If you listen to Coach Prime and do a bit of critical thinking you can see one of the challenges that has been consistently echoed since day one is that when recruiting talent, the most major concern of the recruits and their parents is “Where is my child going to be living?”.

If I can take you back when JSU experienced record enrollment to the point that hotels were purchased/leased to house students… why didn’t the state powers that be prioritize funding the development of new dorms then? As a matter of fact, when was the last approval from the state for new housing units? I have seen many of the dorms undergo much needed renovations and I love it, but from my recollection and research it’s been decades since a new facility was constructed to increase the university’s housing capacity. Now I know many will immediately bring up One University Place (OUP) and I will remind you that OUP was a private development and was not exclusively for student housing.

I do believe that this is not a one or the other scenario and if the state wanted to truly support JSU’s growth, that providing the resources for both should and can be done. The funding of repeated studies on this along with the poison pill about the location are signs of false support considering they are rarely followed with action. From what I can tell there is a clear agenda to stifle the growth of the City of Jackson by the state, specifically the Republican party in the state, and as a byproduct of this agenda a stifling of the growth of JSU.  

Let’s imagine downtown Jackson as a thriving economic center: JSU’s campus has grown such that it truly is an urban university campus; University Ave serves as a vein of economic prosperity; the communities surrounding the University have adequate housing; the Jackson Tech District is booming and providing a breeding ground for technology and talent in the city, encouraging more tech focused and high paying jobs; and Farish St./HWY 80 start to grow and develop to bolster the economics of the area even further with entertainment and amenities. This is starting to sound like a little Atlanta….

Without a clear vision and competent, strong leadership what will happen? Will JSU get bamboozled again as we were in ’71 when this whole thing was set in motion? With the lack of an independent vision and effective leadership to chorale the support for execution, we are made vulnerable to be taken advantage of and allow our dollars to leave the community for decades to come.