NewTownMacon CEO says residences key to downtown revitalization

ALBANY — While there are those who feel progress has been slow to revitalize downtown Albany, Josh Rogers, president and CEO of NewTownMacon, says that city’s answer was for midtown success could be summed up in a single word — lofts.

“Almost full-stop residential housing is the answer,” Rogers said at a meeting last week of the Albany Rotary Club, “There are a number of residential trends that are playing out right now.

“The millennial generation doesn’t buy houses, and one of their highest priorities in choosing housing is walkability. That creates a tremendous opportunity for downtowns across the country.”

NewTownMacon began in 1996, Rogers said, when the Peyton Anderson Foundation partnered with Macon city government as a non-profit company dedicated to revitalizing the central city. In 2012, the Bibb County government backed private bonds in the amount of $5 million, which were purchased by SunTrust as a partial source of funding for developers.

According to Rogers, the bonds are then re-loaned to loft developers as “gap” financing in a formula of at least 10 percent developer equity, 40 percent loaned by NewTown and 50 percent coming from a traditional lending institution.

“It’s been awesome,” Rogers said. “It comes at no expense to taxpayers and the taxpayers don’t pay back the bonds. The developers pay back the bonds.

“The only possible downside is the credit risks for county government, but as long as we underwrite good loans, we can move quickly and deliver this tremendous amount of value on the property tax rolls.”

According to Rogers, NewTown has so far experienced no loan defaults.

Rogers says the non-profit partner consistently works toward increasing downtown residents, growing jobs and creating a sense of space within the city.

“When we’re able to do those three things, then we get holistic downtown revitalization,” Rogers said. “If government was running this bond fund, I don’t think they’d have a zero percent default rate or nearly the leverage we’ve been able to generate because we’re entirely focused on creating the maximum amount of downtown revitalization and making sure the loans get paid back.”

According to Rogers, Macon’s approach to building conservation has mostly reversed over the past several years, at one time bringing government agencies in to occupy and “save” the structures.

“Now we’re doing the opposite,” Rogers said. “We’re moving government offices out so the property can be free for development.”

Other advantages offered by NewTown, Rogers said, include a “developers academy,” where tentative loft developers are schooled on the ins and outs of downtown investment, including expected returns, risks and tax credits, and the service of providing general market studies for small retail businesses.