Updated: City Signs Letter of Intent for 42-Acre Property on Peachtree Industrial

The city of Dunwoody has concluded negotiations for 42 acres of land on Peachtree Industrial Boulevard, currently home to 519 apartment units, which would be developed into a municipal sports complex.

Monday night, the city council voted 6-1 (with Denis Shortal voting against) to enter into a letter of intent with Cortland Partners LLC to acquire the Dunwoody Glen Apartments (alternatively known as the Chase Apartments), 6750 Peachtree Industrial Boulevard, for around $19 million.

 The purchase would be contingent on the passage of the $33 million , which will go to voters on Nov. 8.

“What’s critical about this is this purchase identifies how over 75 percent of the bond funds will be spent in advance of the vote and I think that shows some transparency on the city’s side,” Hutmacher said.

The plan for the 42-acre site may include walking trails, playgrounds, pavilions, restrooms, as well as fields suitable for baseball, softball, lacrosse and football.

While the city would redevelop the site, the letter of intent also stipulates that the owner, Cortland, would take down the neighboring Lacota apartments, which has 266 units, and redevelop the 21-acre property as owner-occupied units.

Councilman Danny Ross said he was excited about the prospect.

“I think this is something that allows us the opportunity to transform Dunwoody in a way that we’ve all wanted it to transform,” he said.

Development of a sports complex on the site would push the city’s long-term goals forward, officials said.

"The purchase sets in motion the accomplishment of many of the goals in our adopted Parks, Recreation and Open Space Master Plan," said Mayor Ken Wright in city press release. "It provides us with adequate space for a much needed sports complex to meet the needs of our youth as well as freeing up Dunwoody Park for the expansion of the Dunwoody Nature Center."

Not everyone was pleased with the letter of intent, which was added to the City Council’s agenda at the start of the meeting.

Dunwoody resident Bob Lundsten questioned the timing of the letter, brought before the council just two weeks before the Nov. 8 election.

“I think the fact that we are up here talking about a letter of intent to spend money we don’t have, pending the passage of a bond that is yet to be voted on, is absolutely an abuse of this council’s position,” he said.

“You are now advocates. You are not allowed to be advocates,” he added, saying the council is taking the stance that voters need to pass the bond to move this project forward. The council isn’t allowed to advocate one way or another for the bond referendum (council members can advocate for the bonds as candidates for office or when they are not in their council roles).

The Dunwoody Glen complex has 519 units, about 94 percent of which are occupied. The Lacota Apartments complex has 266 units.

"The city regrets the need to displace residents (785 apartment units), however, in a built out environment like Dunwoody, we have found it challenging to locate a sufficient amount of vacant land for the athletic facility desired by the community," Wright said in the press release. "The city will work with Cortland Partners on a transition plan for the current residents, which includes 560 school age children who are in the Dunwoody cluster; all current leases will be honored without the threat of early cancellation."

The relocation issue also didn’t sit well with Lundsten, who was the lone speaker during the public comment section on the issue.

“What are you going with 560 kids that this city – the city that has everything we want, that’s now going to displace 560 kids from the Dunwoody cluster?” he said.

“We now have a relocation issue that we have to address all for the sake of a Dunwoody Senior baseball field,” he added.

If the bond passes, the city would likely close on the Peachtree Industrial property in the second quarter of 2012.

Hutmacher said the council has been negotiating on the property for more than a year. Under state law, the council can negotiate for land during non-public executive sessions.

It would be the second parkland parcel linked to the acquisition bond. , the purchase of which is also contingent on the passage of the bond.

Councilman Denis Shortal said he was disappointed by the timing and lack of transparency.

“This has now been vetted to you [the public] for about 10 minutes,” he said, adding that it was for something that could cost the city nearly $20 million.

“I wonder if this is that transparency all of you talk about,” he said.

Councilman Robert Wittenstein said the decision on the plan is in the hands of Dunwoody citizens.

“Voters ultimately will decide whether they think we are acting in their best interest or not,” he said.

Councilman John Heneghan said voted for the measure in order to get it in front of citizens.

“I’m going to vote for it so that it’s ratified, so that citizens can view it and can comment and get a sense of where we should be as a city,” he said. “I still have questions, but again, I think this should go forward for public perusal.”