When you are kicking the competition’s butt, don’t stop kicking… part 2

In my last post I discussed an article by Pat Fox of the Atlanta Journal Constitution which highlighted Alpharetta’s tremendous success attracting lucrative technology jobs. There was also another article in the AJC about Alpharetta but unfortunately that one is not posted online so I contacted the writer, Rachel Tobin. Ms. Tobin graciously said that I could reprint the article here as long as I give the newspaper credit.

It is an excellent article so I am going to try something different today by posting the whole article with certain key phrases highlighted. After the article you can read my comments.

The big money still heads to Alpharetta
Top industries flock to hot office submarket.Besides company HQs, call and data centers also move into area.
Rachel Tobin / Staff

Thirty years after striking out to attract the executive set by building grand homes around bucolic golf courses and horse farms, Alpharetta has succeeded in its mission of also luring the companies that employ those executives. The result: Alpharetta is no longer just an enclave for well-heeled executives. It’s become a hub of call and data centers for Fortune 100s like Coca-Cola, as well as regional corporate offices for other companies with household names. Think Motorola, Philips, Comcast Cable, health care services firm McKesson Provider Technologies and information service Lexis-Nexis.

Despite the 40-minute-plus drive from Hartsfield-Jackson International Airport — and sometimes choking traffic — Alpharetta remains one of metro Atlanta’s most competitive office submarkets. It’s successfully been attracting — and keeping — some
of the nation’s hottest industries, from technology to health care. The city was anointed the country’s No. 1 “reloville” by Forbes in 2009. Rival office markets like Central Perimeter have lost big tenants to Alpharetta, which boasts office rental prices that are up to 10 to 15 percent lower.

With housing stock that goes from $85,000 starter homes to multimillion-dollar mansions, Alpharetta is not just for CEOs anymore. Alpharetta’s daily workforce now includes lower- to mid-level staffers at data and call centers as well as regional headquarters for internationally known companies.

Holder Properties has developed 20 to 30 data facilities in north Fulton, said Tim Bright, an executive vice president.
“Because so many data centers have gone there, others are going because of the critical mass of talent, intellectual expertise and vendors that service them, ” he said. “It’s the cool place to be.”

Sarah LaDart, a project manager for the North Fulton Chamber of Commerce and Progress Partners, an economic development group, said the area has “been very aware that not every job created in Alpharetta is a $200,000-a-year job. A stone’s throw from the chamber, we have homes that are $100,000.”

Adam Viente with Jones Lang LaSalle describes what he tells potential office tenants at Sanctuary  Park in Alpharetta: “We have million-dollar-plus homes and golf course communities, as well as entry-level housing. And every amenity you could imagine.”

One of those continues to be Alpharetta’s serene setting. On a recent day, traffic was stopped in Sanctuary Park as geese crossed the
road. One of the most popular features at the office park is its softball field, where 16 teams of tenants battle it out for the coveted end-of-season trophy. There’s also a foot path to Verizon Amphitheatre.

Still, “call center” is not exactly what some want the area branded for. “I hate the term because of the connotation that comes with it, ”
Viente said. What Alpharetta has are not sweat shops, where office workers in headsets are corralled into rooms handling difficult customers, then huddle at the exits for 10-minute cigarette breaks, he said. These are sophisticated call centers, he said, handling inside sales calls for companies like Coca-Cola.

Some, for example, are longtime engineers who help restaurants fix beverage machines, added Clint Howell, also with Jones Lang LaSalle, who manages Sanctuary  Park. Many are mid-career and high-paid, he said. “Coca-Cola’s isn’t a call center in the traditional sense of the word, ” Howell said.

One of Alpharetta’s strengths, said Chris Macke, a Washington-based senior real estate strategist with CoStar Group, is its ability to attract companies up Ga. 400 from the Central Perimeter, especially technology firms like Verizon, E-Trade Financial and AT&T that have built campuses in north Fulton.

Many of these businesses will fuel the economy for years, if not decades, to come, Macke said. The result is a stabilization on the north Fulton market, which was hurt when financial service and real estate firms, battered by the recession, shed staff and offices.

Estimates for north Fulton’s overall office vacancy rate vary. CoStar says it was 17 percent in the first quarter, compared to 12.7 percent at the end of 2007. Jones Lang LaSalle reported 19.6 percent for the first quarter, compared to Cushman & Wakefield’s 18.9 percent.

Only the Central Perimeter area and northwest Atlanta have more Class A office space than north Fulton, but North Fulton’s vacancy rate is 15.8 percent, which beats metro Atlanta’s Class A average by more than three points. Central Perimeter’s Class A vacancy
is 18.7 percent, while northwest Atlanta’s is 15.8 percent, according to CoStar.

To be sure, Viente said Class A suburban office buildings aren’t the same as the glittering skyscrapers from downtown to Buckhead. Most Alpharetta office buildings are four to six stories, surrounded by ample parking in manicured settings complete with lakes and waterfalls.

But the office parks and nearby lifestyle continue to be a draw.

“I’m happy where I am right now, ” said Dave Burr, who is consulting business leader for E-Trade Corporate Services, which has a campus on Windward Parkway. He started with E-Trade about two years ago and he loves the campus. “They keep remodeling it and adding more trees and scenery, ” Burr said. “It’s a really pretty office park to come to every morning.” Across the street, there are 10 restaurants, with dozens more a short drive away.

And he raves about another feature: a running group that meets after work Thursdays to take advantage of a nearby 14-mile path that winds through woods. Burr lives in Sandy Springs with his wife, a Midtown lawyer, and their three dogs. He said his commute is a breeze, though he admits his wife’s commute is not.

Clifton Camp, who owns MarketingCamp, a marketing and branding firm, often works from his five-bedroom home in north Fulton.
A Michigan transplant, Camp is on his fifth home since moving here in 2004, continually buying and selling homes after starting with a foreclosure in Country Club of the South. A major plus, he said, is the excellent school system for his three school-aged
kids. By not paying for private school, he said, “I can funnel those funds back into the household so we can have a few of the finer things in life. That is a plus.”

Still, all interviewed by The Atlanta Journal-Constitution for this story said that the lack of a rail system is north Fulton’s biggest challenge for both future growth and quality of life.

For Viente, that means a competitive disadvantage for Sanctuary Park. “Central Perimeter has four MARTA stops. We have zero. I think that is the biggest thing this submarket is facing, ” he said. He’d like to see a MARTA stop near North Point Mall.

One of the main jobs of Ann Hanlon, chief operating officer of the North Fulton Community Improvement District, is improving transportation. “The north Fulton area is pretty easy to get around within it, but it’s difficult to get to and from it from somewhere else in the region, ” she said. “It’s a challenge, especially when more and more of our leases are going to call centers, which is pulling employees from other parts of the region.” She said when gas prices skyrocketed a few years ago, she saw people walking
long distances from bus stops in hot temperatures. “It’d be 105 degrees outside and people were walking all over Alpharetta
from the bus stations, ” he said. “We said it’s just not practical.” Her organization, with the help of other groups, is studying transit options. “We’re trying to show the suburbs are ready for transit and make the business case for it and that we can’t live without it anymore, ” she said.

About our series
Metro Atlanta has been a master of reinventing itself ever since the Civil War. In the process, the region has become the undisputed capital of the South, a hub for Fortune 500 companies, with an airport that is the envy of the region. Through it all, landmarks have risen, some have fallen, others were saved and new ones were built. As Atlanta’s ambitions grew, so did unique areas with their own flavor and style, attractions and problems. This year, The Atlanta Journal-Constitution will embark on an occasional series to check on the skyline. We aim to examine the opportunities and challenges in business districts metrowide.

To send us your ideas for the series, please e-mail Rachel Tobin at rtobin@ajc.com.

The Atlanta Journal-Constitution, Main Edition
Sunday, 4/24/2011, Business, D1

The article is filled with interviews and data that show Alpharetta is kicking the Perimeter area’s butt in attracting technology jobs and corporate headquarters. Alpharetta has higher office occupancy rates and people that have relocated their businesses and families here applaud our quality of life, serene setting and outstanding public schools.

Yet somehow the article concludes that Alpharetta needs to be more like Perimeter Center because, “Central Perimeter has four MARTA stops. We have zero.”

It makes sense that the commercial property owners of the Northpoint CID covet the higher rents of the Perimeter area and it is clear they are pressuring our city council to allow more condos and apartments to accomodate MARTA trains.

But Alpharetta is not like Perimeter Center. That is the key to our success. In the words of Ms. Tobin:

“Thirty years after striking out to attract the executive set by building grand homes around bucolic golf courses and horse farms, Alpharetta has succeeded in its mission of also luring the companies that employ those executives”

Alpharetta’s strategy is working. We are kicking the Perimeter area’s butt. Why should we stop kicking to copy them?

When you are kicking the competition’s butt… don’t stop kicking.

***A special thank you to Rachel Tobin of the AJC for writing an excellent article and allowing me to use it here.***

When you are kicking the competition’s butt, don’t stop kicking

The AJC had a couple of articles about Alpharetta this weekend. One article, Alpharetta a hotbed for high-tech companies,  was about the success Alpharetta has had in attracting high tech companies to our community. You may recall that I pointed this out in my earlier post, GA 400: Atlanta’s Information Highway.

The interesting thing about the AJC article and my blogpost is that the extraordinary concentration of technology jobs in Alpharetta would seem to be counterintuitive if you believe that Alpharetta needs high density housing and MARTA trains to attract high paid technology jobs. If Alpharetta needs high density housing and mass transit to attract high paying jobs then why are we already kicking Sandy Springs’, Buckhead’s  and the City of Atlanta’s butt when it comes to those jobs?

The explanation for Alpharetta’s success comes from Bob Trotter, the North American president of ThyssenKrupp Corp:

But what distinguishes Alpharetta from other tech-wired cities, Trotter said, is its proximity to all the elements that contribute to an inviting lifestyle — good schools, good roads, access to university systems, quality housing, the Verizon Wireless Amphitheatre.

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“If it was just technology, we’d have located to Chicago or Dallas”

Are there companies that want to locate near MARTA stations and high density housing in Atlanta? Yes, but those companies already have plenty of options around Atlanta. Right now Alpharetta is unique and that is why we are successful in attracting high paying tech jobs. Our setting and quality of life give us a competitive advantage over those other locations.

It is too bad that local business leaders and city council members are destroying that competitive advantage.

We don’t need no stinkin’ Windward

A commenter on an earlier post cited a study used to justify the transit system’s expansion of train service into my neighborhood. The study was paid for by MARTA and conducted as part of the North Line Transit Oriented Study which was presented in 2006.

Part of the research was conducted through telephone surveys of nearby residents and the report states:

The telephone survey sample was selected to include residents near each of the 4 proposed TOD sites: Holcomb Bridge Road and GA 400, Haynes Bridge Road and GA 400, Old Milton Parkway and GA 400, and Windward Parkway and GA 400.

So let us take a look at the map showing the areas surveyed. You can click on the picture below to enlarge it.

Many of the dots above indicate where people work in addition to where they live but do you notice anything unusual in the top, right area of the survey map? I do because that is where I live. A tiny little neighborhood called Windward with more than 2,400 homes. Notice how not a single one of the surveys conducted was of a Windward resident? Odd isn’t it? Not one of the thousands of people interviewed lived or worked in the largest neighborhood in North Fulton county.

So what are the odds that a legitimate, random survey would completely avoid an entire geographic area that contained about 1/6th of a city’s population? It’s been a couple of decades since my statistics classes but I’d say the probability of that happening accidentally would have to be less than 1%. If any of you are well versed in probabilities and take issue with my WAG please feel free to correct me.

But regardless of the actual probability, the point is that a survey which is used to justify putting a MARTA train station in my neighborhood did not ask one single person out of the thousands most affected for their opinion. Alpharetta’s elected officials are making decisions based on a survey that completely ignored 1/6th of their constituents and that should be unacceptable whether or not it occurred by design or chance.

Johns Creek Mayor and Councilmen want MARTA trains… in Alpharetta

There is a very interesting article in the Johns Creek Herald. Apparently on April 11 the Johns Creek City Council discussed the issue of how little money MARTA spends in North Fulton County. They also talked about the fact that if Johns Creek residents will be expected to pay an additional transportation tax then MARTA should provide their residents nearby access to trains.

The catch is that they don’t want the MARTA trains to come into the city of Johns Creek. They just want the trains to be extended into my neighborhood of Windward in Alpharetta.

As Mayor Bodker says:

Bodker said the North Fulton cities need to look at their land-use policies to see whether they even want transit, and if they do, how they would support it. He said Johns Creek does not lend itself to trains, however, buses could connect the city to train lines extending northward via the 400 Corridor or Gwinnett County.

“These are all long-term plans that won’t happen overnight,” he said.

However, plans need to be made and land-use policies changed in the meantime. He said even those who do not use transit benefit from it, because taking cars off the road makes it easier for those who continue driving. He also said continued development is unsustainable if people continue relying on cars.

So the man who didn’t honor his word when it came to charging Alpharetta residents higher recreation fees would like us to change the complexion of our city for the good of his constituents? Right. We’ll get right on that.

And Mayor Bodker wasn’t the only one suggesting Alpharetta should change for the sake of its North Fulton neighbors.  Johns Creek City Councilman Randall Johnson said:

…something he would like to see happen is for the train line to extend all the way to Windward Parkway.

“I think you would see more people from North Fulton utilize it,” he said.

This doesn’t surprise me. I have watched as politicians and developers from Johns Creek lobbied for the urbanization of Alpharetta. And I have watched as Alpharetta City Council has acquiesced every time.

I can see how Johns Creek, Milton, Forsyth County, Cherokee County and every other person outside of Alpharetta might enjoy the convenience of having trains in someone else’s backyard. It is much less obvious how the destruction of our quality of life benefits me and my family. I will have more on this subject… a lot more… but for now I am so furious I can’t see straight.

You can read the whole article here.

I hope you all enjoy a wonderful Good Friday and Easter weekend.

Senator Saxby Chambliss, Tax and Spend Republican

Georgia Senator Saxby Chambliss continues to show why conservative voters in Georgia are constantly frustrated by his presence in the Senate. As reported on Redstate.com:

A few weeks ago, I reported that the Senate Republicans’ point man on dealing with the deficit, Saxby Chambliss (R-GA), said he’d support tax increases as a means to reduce the deficit.  Chambliss promptly denied it.

Yesterday, in the New York Times, Chambliss admitted he and the Senate Republicans will support tax increases to pay off the deficit.

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Chambliss has already attacked Paul Ryan’s “Path to Prosperity” because, in Chambliss’s words, Ryan is able to balance the budget without cutting defense spending.

I know South Carolinians keep electing Senator Lindsay Graham but at least they make up for it with Senator Jim DeMint. Floridians have finally elected a rock ribbed Republican in Marco Rubio. Alabama has Senator Jeff Sessions. Why doesn’t Georgia have a staunch conservative senator to balance the moderate tendencies of Johnny Isakson?

If Herman Cain isn’t successful in his quest for the Presidency I hope he will consider remedying our situation by making another run to be the junior Senator from Georgia.

Taxpayers pick up the tab for Windward Mill road improvements

Back in 2008 the Alpharetta City Council approved a high density mixed use project for the intersection of Windward Parkway and Northpoint Parkway. The developer of the project is a man named Penn Hodge and he calls the proposed project Windward Mill. Many residents were upset that the Windward Mill project would add 500 condos to the site and result in 12,000 more vehicular trips at the congested intersection but the Alpharetta City Council unanimously approved the project.

One of the justifications councilmembers cited for their approval was that as a condition of the rezoning the developer would be responsible for millions of dollars in road improvements to accommodate his enormous project. You may remember that the same talking point was recently used by City Council as they tried to explain their recent approval of the MetLife high density mixed use project on Haynes Bridge Road.

So imagine my surprise when I learned that I would be paying for road improvements to accommodate a 15 story condo tower that I didn’t want built in the first place. Well not just me, every tax payer in the state of Georgia is now paying for the road improvements that are Penn Hodge’s responsibility.

As you can see in this press release the North Fulton Community Improvement District has announced that the Georgia Department of Transportation will pay more than $600,000 to, “add a right-turn lane along Windward Parkway, from the north-bound exit all the way to North Point Parkway”. Curiously the press release doesn’t mention that one of the zoning conditions for Penn Hodge’s project on that corner was that there be “an eastbound right-turn lane along Windward Parkway”.

So how did Penn Hodge, who sits on the board of the North Fulton CID, convince the state of Georgia that taxpayers should pay more than $600,000 for the road improvements he was obligated to make? I don’t know but it seems like a great question to ask the executive director of the North Fulton CID, Brandon Beach. You see Mr. Beach just happens to also be the North Fulton representative on the board for the Georgia Department of Transportation. Small world isn’t it?

City of Alpharetta invites you to see their 30 pieces of silver

The city of Alpharetta issued a press release today inviting residents to come see their new plans for the Northpoint LCI center. Below is the release:

Open House Announced For Encore Parkway Improvements

Released on: Monday, April 11, 2011 10:00 AM

Major improvements are underway for Encore Parkway from Westside Parkway to North Point Parkway. Plans include widening Encore Parkway to include a newly designed bridge as it passes over Georgia 400 and shoulders that will house 6-foot buffer planter strips and an 8-footwide sidewalk/bike lane. To connect the newly constructed sidewalks and bike lanes on Encore Parkway to the Big Creek Greenway trail system, sidewalks and shared lanes will be established along the eastern side of North Point Parkway. The project will also incorporate enhancements such as trees, landscaping, lighting and furniture.

The Georgia Department of Transportation plans to unveil the visual elements of the proposed project at a Public Information Open House & Detour Meeting to be held between 5:00pm and 7:00pm on April 26th at the North Fulton Chamber of Commerce (located at 11605 Haynes Bridge Road, Suite 100, Alpharetta, GA). Residents are encouraged to stop by as the presentation is informal and will provide more details on the project and planned detour routes.

What the city fails to mention is that the projects discussed in the press release are a quid pro quo for the city’s adaptation of the Northpoint Area Livable Centers Initiative which includes the MetLife high density mixed use development. Back in 2008 the Mayor of Alpharetta, Arthur Letchas, and the City Council knowingly chose to accept the urbanization of our city in exchange for 4 million dollars worth of improvements in the Northpoint area. Now that the city has approved the MetLife project they can show us the precious new projects that they got in exchange for urbanization.

So if you live in Alpharetta and want to see why our City Council continues to approve high density mixed use projects please stop by and decide for yourself if the urbanization was worth it. While you are there you might also want to ask Department of Transportation board member Brandon Beach how spending that 4 million dollars is going to help relieve congestion for you and your family.

Alpharetta City Councilman DC Aiken “Hearts” High Density Mixed Use Projects

There was an article in the Alpharetta Revue a few weeks ago touting the the new comprehensive land use plan and the thousands of condos or apartments it will add to the most congested corridors of our city. In the piece a consultant that doesn’t live in Alpharetta raves about how great the city could be if we just approve more of these projects… even though none of the ones already approved have succeeded.

Even more surprising was the inclusion of long time city councilman DC Aiken’s vocal support for the continued urbanization of our city. Councilman Aiken is quoted as saying:

“For the most part, it is really not changing anything. Most of the new developments are already mixed-use – Windmill, Prospect Park, MetLife – this is already what is being done”

I find it disappointing and odd that Councilman Aiken would cite a failed mixed use project, a stalled mixed use project and a mixed use project that won’t even be attempted for years as his examples of the city’s new direction but since he voted for all three of them I guess it shouldn’t surprise us. The voters of Alpharetta should remember this when Councilman Aiken comes up for re-election in November.

You can read the entire article here.

It’s not too late for Alpharetta.. but time is getting short

I previously mentioned that the City of Alpharetta is in the process of revising the comprehensive land use plan that will determine the future of Alpharetta’s schools and affect the property values of every home in our community. Below is the picture of what the city has planned. You can find more details at this website which the community development department inexplicably set up seperate from the city’s website.

Welcome to the future of Alpharetta... worse traffic and bad schools

All you really need to know is that the entire horseshoe shaped area in color extending throught the Northpoint area up Haynes Bridge road and circling around Wills Park and Highway 9 will be filled with apartments and condominiums. That means thousands more high density condos and apartments which will create worse trafffic, decimate our public schools and turn Alpharetta into an urban environment that is conducive to more mass transit supported by taxpayers. That is the plan of the city.

It is not too late to change the city council’s mind but there isn’t much time left. If you feel strongly about this issue one way or the other I encourage you to contact the current Mayor and City Council before they approve this plan in the next few weeks.  The contact information below is taken from the City of Alpharetta website and I hope you will all use it to make your voices heard. It is not yet too late but time is of the essence.

Mayor Arthur Letchas: aletchas@alpharetta.ga.us

Councilman Mike Kennedy email:mkennedy@alpharetta.ga.us

Councilman Aiken email:DCAiken@alpharetta.ga.us

Councilwoman Cheryl Oakes email:coakes@alpharetta.ga.us

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Councilman Douglas Derito

Councilman Douglas Derito email:DDerito@alpharetta.ga.us

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Councilman Jim Paine email: jpaine@alpharetta.ga.us

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Councilman Chris Owens email:cowens@alpharetta.ga.us