Peachtree City Annexation Feasibility Final Report Presented by:
August 20, 2026
Study Scope & Context Context
Buildout is limiting options for growth. Tax appraisal values in unincorporated Fayette County have increased 57% since 2020. Neighboring jurisdictions like Fayetteville and Tyrone continue to grow.
Question Answered
If Peachtree City is going to grow beyond its current boundaries: • where should it grow, • what would it cost, and • when should it act?
Study Purpose • • •
Evaluate areas of unincorporated Fayette County to identify annexation candidates for PTC, Develop phased annexation timelines, and Provide strategies to mitigate fiscal and service delivery impacts for strategic growth.
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Annexation Priorities The annexation discussion is fundamentally tied to:
There is repeated concern that: Peachtree City is nearing buildout
Industrial land availability Commercial tax base growth
Fayetteville and Coweta County could capture future growth
Desire for expanded employment opportunities
Remaining large industrial and commercial tracts are limited
Preserving long-term fiscal sustainability
Annexation Goals 1
Protect and expand the long-term commercial and industrial tax base of the city.
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Maintain service quality and fiscal sustainability as the city approaches buildout.
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Prevent competing jurisdictions from capturing strategic growth areas.
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Manage future growth carefully enough to preserve Peachtree City’s community identity and operational model. 3
Methodology Baseline Costs and Revenues per Acre by Current Land Use Within the City for Fiscal Viability Key Inputs City’s Most Recent Budget property tax/non-property tax collections
Cost-Benefit Analysis
Weighed additional revenues from annexed area against additional costs to estimate fiscal feasibility.
Tax Parcel Data estimate of revenues and expenditures for specific land use categories Land Use
Cost Per Acre
Residential
$6,057
Industrial
$1,712
Commercial
$1,794
Exempt
$0 4
Public Engagement Key Takeaways 1
Skepticism around the necessity of annexation of any type and opposition to annexation that would add residential areas to the city
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Widespread agreement that the idea of “targeted annexation” could buffer Peachtree City from growth that differed in character from Peachtree City, particularly along the Highway 54 Corridor
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Some support for the annexation of Starr’s Mill High School due to community perceptions that the high school is generally acknowledged as part of the Peachtree City community
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Questions about the suitability of the land between the City’s current eastern boundary and Ebenezer Road for industrial/commercial uses due to existing residential character
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Somewhat general agreement that Ebenezer Road made sense as a long-term boundary for growth and annexation efforts
Source: Fayette News
Community Open House Held on Thursday July 16th from 3:00 PM to 7:00 PM at Peachtree City Library Robust turnout across the full four hours of the event with attendance estimated at over 50 attendees 5
Annexation Area 1
Annual Net Revenues from Annexed Parcels: -$70,465 Overview
Fiscal Analysis
Annexation allows Peachtree City to guide zoning, gateway improvements, and compatible transitions between employment areas and nearby neighborhoods.
Service costs slightly outweigh revenues for residential parcels.
Annexation would strengthen Peachtree City's ability to manage future growth in a manner consistent with Council-approved planning principles.
Annexation of only a targeted subset of parcels within Area 1 limits Peachtree City’s fiscal downside, while advancing its own vision and goals for the future of this corridor. 6
Annexation Area 2
Annual Net Revenues from Annexed Parcels: -$343,616 Overview
Fiscal Analysis
Because of its limited fiscal upside relative to other areas, Area 2 may be a longer-term opportunity that, from a financial feasibility standpoint, should follow higher-priority employment-focused annexation efforts.
Starr’s Mill parcel is tax exempt and would generate no revenue for the city. Other parcels represent strong opportunities for publicprivate partnerships
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Annexation Area 3
Annual Net Revenues from Annexed Parcels: -$675,341
Overview Area 3 offers a long-term opportunity to expand Peachtree City inventory of employment land and strengthen its commercial and industrial tax base. Success depends on assembling developable sites, extending infrastructure, and coordinating future land use planning with surrounding property owners.
Fiscal Analysis Large parcels are ideal for potential future industrial or commercial development. Trailer park on the edge of the city is most responsible for the fiscal downside. 8
Annexation Area 4
Annual Net Revenues from Annexed Parcels: -$6,999
Overview
Fiscal Analysis
Interest in Area 4 is rooted in the potential to convert this territory into predominantly industrial uses.
Since no other jurisdictions can annex this set of parcels, the city can take the necessary time to strategically annex parcels as needed in the future.
Provides opportunities to expand the city’s economic development portfolio while remaining compatible with adjacent land uses.
Most of these parcels are likely to continue to draw interest for both residential and commercial development.
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Annexation Area 5 Overview Interest in the area centers primarily on the possibility of strengthening the Dogwood Trail corridor through additional commercial activity and improved land use coordination. Constraints include limited infrastructure capacity, predominantly residential development patterns, fragmented ownership, and fewer large development sites than other annexation areas.
Fiscal Analysis This study recommends to not pursue annexation efforts in Area 5 at this time due to the heavy amount of residential property in the area and poor suitability for conversion to other uses.
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Strategies & Recommendations The decision before the community is strategic and political, not fiscal. Currently, large-area annexation does not pay for itself No fiscal argument alone justifies annexation of the examined larger areas under current conditions.
However, current exposure risk is modest All areas combined have an annual net cost of approximately $1.1 million, less than 2% of the city’s annual operating budget.
Undeveloped land is the opportunity Fiscally-feasible annexation opportunities will present themselves through conversion of undeveloped land to commercial and industrial uses. The decision to annex new-construction residential development is likely worth considering as today’s higher cost of new homes could drive positive fiscal outcomes, depending on both cost and revenue considerations.
Strategic Recommendations Prioritize annexing parcels within Area 1 along the Highway 54 corridor. Investigate real staffing related costs associated with annexing Starr’s Mill High School and associated school facilities. Limit annexation efforts to targeted opportunities that advance economic development goals as they arise. Pair annexation efforts with rezoning that converts residential uses to commercial or industrial uses. Explore the viability of implementing redevelopment tools and utilize them to help aging commercial properties within the city today transition to higher intensity and competitive uses.
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Annexation Feasibility Final Report Presented by:
Geoff Koski, President Geoff@kbagroup.com 404.845.3550 www.kbagroup.com
August 20, 2026