City of Atlanta Partners with Controversial CIM Group

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From the controversial “Cop City” project, to the well-documented corporateinfiltration of the single family rental market, Atlanta remains ground zero for the private equity takeover. Despite alarms being raised by advocates across the country about private equity’s negative impacts on people and the planet, City of Atlanta officials continue to form partnerships with private equity firms, falling for false promises of affordable housing and equitable development. The latest example of this is with the ongoing “Gulch” project, where City of Atlanta officials signed a deal with LA-based private equity firm the CIM Group to redevelop the Gulch, a 40 acre area of land in downtown Atlanta. With initial estimates for the project being in the $5 billion range, the city of Atlanta offered CIM nearly $2 billion in sales and property tax breaks in exchange for promises of affordable housing, various public enhancement projects, and construction contracts that emphasized diversity and equity. Ultimately, in October 2024, CIM announced that it was reneging on the affordable housing component of the deal, opting to pay a fee of $8 million instead. Housing advocates allege that this fee was lower than it should have been, as it was based on outdated figures. 

The largest redevelopment deal in the city in the 21st century, the deal (which changed the name of the area from the Gulch to Centennial Yards) was controversial at its inception in 2018. A community organizing coalition called “Redlight the Gulch” fought against the deal, joined by economists and advocates. In the end, eight out of 15 city council members voted yes during the final vote for the project, after over nine hours of public comment. While proponents of the deal argued that the deal could have a “generational” impact, the CIM Group’s behavior has been the subject of many headlines, such as allegations of tenant mistreatment, and accusations of furthering gentrification. As Atlanta’s homelessness crisis continues, it is up to city officials to conduct research on corporations and firms that it chooses to partner with, especially with regards to how vulnerable the city of Atlanta is. If city officials refuse to engage with the public and well-documented misbehavior of private equity firms, Atlanta will continue to be beholden to corporate interests.

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