CITY OF ATLANTA PARTNERS WITH CONTROVERSIAL CIM GROUP

The report examines the 'Centennial Yards' (formerly the Gulch) redevelopment project in Atlanta, where the City provided nearly $2 billion in tax breaks to the LA-based private equity firm CIM Group. It highlights CIM's decision in October 2024 to renege on affordable housing promises by paying an $8.5 million 'in-lieu' fee, which critics argue is based on outdated 2017 data. The document further details CIM's controversial track record in other cities, including allegations of predatory behavior at Southern Towers in Alexandria, Virginia, and driving gentrification in the West Adams neighborhood of Los Angeles.

• The City of Atlanta provided the CIM Group with nearly $2 billion in public subsidies, consisting of a 20-year property tax exemption and the ability for the developer to retain all city and state sales taxes for 30 years, in exchange for promises of affordable housing and public enhancements.
• In October 2024, CIM Group reneged on its commitment to include affordable housing in the first apartment tower of the Centennial Yards project ('The Mitchell'), opting instead to pay an 'in-lieu' fee of $8.5 million.
• Critics and researchers allege that the $8.5 million in-lieu fee is significantly undervalued because it relies on 2017 housing data; updating the figures to 2025 prices would have increased the cost by at least 40%, or roughly $3.7 million.
• CIM Group has been accused of severe tenant mistreatment at the Southern Towers complex in Alexandria, Virginia, including filing evictions during the 2020 CARES Act moratorium, ignoring mold issues, and implementing significant rent hikes.
• In Los Angeles, CIM Group is identified as a driver of rapid gentrification in the West Adams neighborhood, where it owned or developed over 40 properties as of 2022 and faced accusations of using the City Attorney Office to target business owners who refused to sell.
• A PESP analysis found that CIM Group increased average rents at the DelMar Terrace complex in Phoenix by nearly 20% over two years, while the broader Phoenix market saw a 2% decrease; the property's 2023 eviction rate was 30%, more than double the Maricopa County average.

APA

Agbebiyi, K. (2025). CITY OF ATLANTA PARTNERS WITH CONTROVERSIAL CIM GROUP. Private Equity Stakeholder Project. https://pestakeholder.org/wp-content/uploads/2025/05/PESP_Report_AtlantaCIM_2025.pdf

Chicago

Agbebiyi, K. CITY OF ATLANTA PARTNERS WITH CONTROVERSIAL CIM GROUP. Private Equity Stakeholder Project, 2025. https://pestakeholder.org/wp-content/uploads/2025/05/PESP_Report_AtlantaCIM_2025.pdf.

Wikipedia

{{cite report |last1=Agbebiyi |first1=K |title=CITY OF ATLANTA PARTNERS WITH CONTROVERSIAL CIM GROUP |publisher=Private Equity Stakeholder Project |date=May 2025 |url=https://pestakeholder.org/wp-content/uploads/2025/05/PESP_Report_AtlantaCIM_2025.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{agbebiyi2025city, author = {Agbebiyi, K}, title = {{CITY OF ATLANTA PARTNERS WITH CONTROVERSIAL CIM GROUP}}, institution = {Private Equity Stakeholder Project}, year = {2025}, month = may, url = {https://pestakeholder.org/wp-content/uploads/2025/05/PESP_Report_AtlantaCIM_2025.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }