Destination 2017: AtlantaBy Aldo Nahed

While the BeltLine is still in its early years of implementation, Atlanta so far has spent $447 million in local, state, federal and private funds to build out 2,000 acres of public parks and 33 miles of multiuse trails, and to prepare to accommodate streetcar and light-rail transit. The private sector has responded with $3.7 billion in new residential and commercial development since 2006, when the BeltLine’s five-year work plan was created. The goal is to attract $20 billion by its 2030 completion, says Jerald Mitchell, director of economic development for Atlanta BeltLine Inc., a nonprofit that coordinates with the city and regional and state agencies to oversee the BeltLine’s design, construction and operation.

The first large public-funding source that set the project apart was the creation of a tax allocation district (TAD), a geographic area in which incremental property tax revenues finance the project, which in turn stimulates further growth, increased property values and even higher tax revenues. Fifteen percent of the funds collected by the TAD goes to affordable housing. While that may not be enough—as property values on the BeltLine have increased 50 to 60 percent from 2012 to 2015, according to a Georgia Tech study—it’s a start for a city that has for too long had insufficient resources to support low-income families. At the same time, the BeltLine is creating a walkable, car-less solution to the city’s traffic congestion. To show support for transit alternatives, Atlanta voters in 2016 overwhelmingly passed two sales taxes, one that pays for lighting and the remaining land to close the BeltLine loop, and a transportation tax to fund the streetcar program.

“We have really diversified funding streams,” says Clyde Higgs, VP and COO for Atlanta BeltLine Inc. “They also include a significant $18 million grant from the U.S. Department of Transportation to help us complete the Westside Trail sometime this fall.”

The breadth of funding reflects the project’s broad scope, notes Ryan Gravel, an urban planner and founder of the design firm Sixpitch. Gravel envisioned the BeltLine in 1999 when he was a Georgia Tech grad student. When he gives talks around the globe on the project—which was his master’s thesis—it sparks tremendous excitement as a way to reenvision urban living. “My ideas were the kernel of it, and it’s gotten to be much bigger than that,” Gravel says. “We have an incredible opportunity to invent something new and make a life that we want.”

To understand what the BeltLine is doing for property values, take a look at Ponce City Market, a mixed-use complex commonly known as PCM, located along the Atlanta BeltLine Eastside Trail. The 2.1 million-square-foot property—formerly a Sears, Roebuck & Co. distribution center and, more recently, an outpost of city hall—embodies the BeltLine’s car-free lifestyle and mission of redevelopment. New York– and Atlanta–based private equity firm Jamestown invested $300 million in renovating the decaying building into high-end retail space, offices and a cluster of high-profile restaurants and residential flats. Rent for a 575-square-foot studio at PCM starts at $1,750 a month. A 20-minute drive away from the BeltLine, studios go for $679 per month.

While rents along the BeltLine are hitting record highs, demand is only growing. The narrow connecting roads are constantly filled with cranes and construction workers trying to keep up with demand for multifamily residential units, restaurants, shops and office space. “It shows how starved Atlanta has been for such an amenity,” says Mark Pendergrast, author of the book City on the Verge, which discusses Atlanta’s urban revitalization.

Companies are reaping the benefits of the BeltLine’s draw. Michael Tavani, an Atlanta native who runs Switchyards Downtown Club, a private incubator for tech entrepreneurs, says the BeltLine is helping connect him to the brightest in his field. “It’s having a huge impact,” he says. Notable tech tenants who have set up operations along the BeltLine include Athenahealth, General Assembly, Twitter, Google, MailChimp and Cardlytics. “It’s unique to Atlanta—not a cookie-cutter project,” Tavani says. “This is our most visited park and it’s great culturally. Top creative, tech-savvy talent think a lot about these cultural offerings.”

As is the case with many urban redevelopment efforts across the country, one key area of concern is gentrification. Housing prices in once-affordable communities have more than doubled to the high six figures, with some homes selling for more than $700,000. Meanwhile unemployment in Atlanta remains at around 5.7 percent—well above the national average. “We are trying to address 30,000 new units in housing,” Mitchell says. “Fifty-six hundred of those are encouraged to be affordable workforce housing for school teachers, firefighters and nurses to be able to live and work in the city and around the BeltLine area.”

So far, 785 affordable units have been built. But more needs to be done, says Cathy Woolard, a former city council president and one of the early champions of the BeltLine. An Atlanta mayoral candidate this year, Woolard helped to insert the project into the city’s long-term plan and secure $23 million for the corridor. “We need to be more aggressive citywide to ensure we have an array of housing choices in an array of sizes and incomes available.”

All eyes are now fixed on the Westside and Southside trails, dotted with crumbling industrial façades since manufacturing jobs left the area during the economic downturn. Visionaries are playing the long game and properties have started to trade hands. Monday Night Brewing, a popular craft brewery, seized on areas near the Westside Trail to expand its operations. “People are really investing in their communities,” says Jonathan Baker, the company’s cofounder. “There hasn’t been a lot of commercial investment yet in those areas. But a lot of folks simply want gathering spaces outside of their homes. Breweries are great for that.”

Indeed, for cities to succeed in an age when people can work from almost anywhere, they have to focus on lifestyle issues. From transportation to cultural offerings to business opportunities, the BeltLine is helping Atlanta do just that. “It’s the equivalent of having 22 miles of beachfront property in the core of the city,” says Tavani. “It’s the most exciting thing that has happened to intown Atlanta, specifically, and maybe the entire city over the last 50 years.”