Kennesaw’s development authorities may structure abatements through a bond-financed, sale-leaseback arrangement, wherein “phantom” or “abatement” bonds are issued to purchase the project/ property.
The project is then leased back to the company/ incentive recipient. Because development authorities are tax-exempt, the lease serves as the mechanism for the abatement. The process is also known as “bonds-for-title.” The bonds may be taxable or tax-exempt based on the project. Abatement terms typically range from 10-20 years. Applications are considered by the KDA and KDDA Boards on a case-by-case basis.