Atlanta Beltline, Inc. has launched a pilot fund program to back small, local developers working on commercial projects along the Beltline. The Local Developer Incentive Fund aims to provide affordable commercial spaces along the Beltline. The grant is open to both new and recently completed development projects.
New Grant Initiative for Affordable Commercial Spaces on the Atlanta Beltline
On September 24, the Atlanta Beltline Inc. announced the $2 million Local Developer Incentive Fund at the State of the Beltline event with the Council for Quality Growth.
The program will award grants of $150,000 to $500,000 to local entrepreneurs and small businesses along the Beltline. Grantees must commit to leasing a portion of their commercial space at below-market rates for at least 10 years.
The grant is available to developers with both new and recently completed commercial projects in Atlanta. With thousands of visitors coming to the Beltline daily, the fund aims to support small businesses while preserving the historic communities of color and cultural heritage that define the area.
“Launching the Local Developer Incentive Fund marks a pivotal moment in the Beltline’s evolution,” said Clyde Higgs, President & CEO at Atlanta Beltline, Inc. “We’re proving that transformative development and community preservation aren’t mutually exclusive, and we want to ensure that residents and visitors alike experience the authentic, locally owned businesses that represent the true spirit of our city. This fund is our commitment to making that vision a reality.”
“Our local shops and restaurants are the heart of our neighborhoods, but rising rent often stands in the way of their dreams,” said Kelvin Collins, Vice President of Economic Development at Atlanta Beltline, Inc. “The Local Developer Incentive Fund is our direct response—an innovative model that shares the responsibility of fostering small business success with our development community. This is how we ensure that Beltline’s growth works for everyone.”
Key Objectives of the Fund
Commercial lease rates along the Beltline are the highest in Metro Atlanta, surpassing those in the Perimeter and Buckhead submarkets. Plus, it outpaces the growth in Neighborhood Stabilization Areas in neighborhoods spread across the corridor. This has made property ownership hugely difficult along the Beltline, with minority and locally owned businesses facing additional troubles.
Few developments offer small, flexible commercial spaces, widening the gap between market demand and what businesses can afford. As a result, legacy businesses face a displacement threat and new ones face further barriers.
Against this backdrop, the creation of affordable spaces will save legacy businesses and support new entrepreneurs. This, in turn, will ensure Atlanta’s inclusive and sustainable growth.
Beltline’s economic development framework builds upon commercial affordability. Its land acquisition strategy supports this goal by prioritizing affordable housing and commercial spaces for neighborhood small businesses.
Atlanta Beltline’s commercial affordability strategies continue with the latest launch of the Local Developer Incentive Fund. The grant program arrives at a time when Atlanta is bracing for international events, including the FIFA World Cup 26™ and Super Bowl LXII. It will provide small businesses with affordable and stable spaces that support economic growth during the large-scale events and beyond.
Funding for the program comes from 2016 bond proceeds earmarked for economic development.
Call for Applications
Developers willing to apply for the latest program by Atlanta Beltline Inc. can apply here. The deadline for applications is Friday, October 24. But before applying, the small, local developers must ensure that they meet the following criteria:
- Must be located in the Beltline corridor
- Must include a commercial affordability commitment to lease a portion of the commercial space at below-market rates for a minimum of 10 years
- Tenants must meet small business income and employment thresholds.
- Have gross revenue less than $1.5 million
- Employ 20 people or fewer
- Operate no more than one location in the state
Benefits for Developers and Small Businesses
Administered by the Center by Lendistry, the Local Developer Incentive Fund helps reduce risk and support project feasibility. Atlanta Beltline’s grants may either be recovered or required to be paid, given that the affordability commitments for 10 years are violated.
A key benefit for developers and small, local businesses is that the funding will enable them to fill project gaps in the Beltline area. The funding can also attract additional investment, with operational support available through the Atlanta Beltline Business Solutions Office, including lease-up services and tenant sourcing.
Market intelligence, such as rent benchmarking and compliance studies, can help offset costs.
About Atlanta Beltline Inc.
As the official implementation agency for the Atlanta Beltline, the organization acts to make Atlanta a shining example of an inclusive, equitable, and sustainable city. Atlanta Beltline Inc., along with its partners and host communities, is committed to affordable housing & public housing, job creation, and inclusive transportation systems.
Initiatives such as the Atlanta Beltline Marketplace, supporting 14 businesses across four locations, advance commercial affordability strategies.
The Beltline Commercial Affordability Consortium (BCAC) is another long-term affordable initiative. The Robert Wood Johnson Foundation is offering funds to BCAC to prioritize efforts for an affordable commercial space along the Beltline corridor. In partnership with Kindred Futures and Urban Land Institute Atlanta, BCAC aims to bring together different stakeholders to work on affordable strategies along the Beltline.
The Local Developer Incentive Fund is a groundbreaking effort to preserve affordable commercial spaces along the Beltline and celebrate the city’s diverse communities.
