Smyrna loses millions on apartment complex deal | www.myajc.com

A series of puzzling real estate investments that were supposed to assist redevelopment in the city of Smyrna wound up costing taxpayers almost $7 million, according to documents reviewed by The Atlanta Journal-Constitution.

In 2008, amid the collapse of the real estate market, the Cobb County city decided to spend millions in taxpayer money to buy, renovate and operate a blighted apartment complex. But just one year after sinking $2.5 million into upgrades, the city changed course: It sold the bulk of the site for about half the purchase price to make way for a new environmentally friendly elementary school.

The result was a net loss to city taxpayers of $6.8 million. City officials said they bought the apartments as a long-term investment to support redevelopment in the growing city of about 51,000. But when Cobb County Schools showed interest in the site, the city decided an elementary school would bring bigger benefits and provide the city with added greenspace.

“When we purchased (the apartments) there was no talk about putting a school there,” said longtime Smyrna Mayor Max Bacon. “We would have never done renovations had we known the school board was interested.”

In 2010, the city decided to purchase yet another apartment complex — this time a 48-acre site financed with $15.9 million in taxpayer-backed bonds. Those apartments, at the corner of Windy Hill and Old Concord roads, were demolished by the city in order to clear the way for future redevelopment. But if the property isn’t sold by February, taxpayers will have to start making payments on the bonds.

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