Letters, Faxes & E-mail HAWKS ARENA FUNDING Taxpayers well protected

• Published in: The Atlanta Constitution
• Main Authors: Hightower, Michael, Fulton, Bob, JERRY D. WEAVER, Atlanta, DEE and GREG LARSEN, Roswell
• Format: Newspaper Article
• Language: English
• Published: Atlanta, Ga Atlanta Journal Constitution, LLC 04.06.1997
• Subjects: Area planning & development; Letters to the editor; Property taxes; Stadiums; Atlanta Georgia
• ISSN: 2473-1609; 2690-8093

There have been objections from some quarters, including a few of my colleagues on the Fulton County Commission, that the financing of the proposed downtown arena leaves taxpayers vulnerable. Those objections aren't just unfounded, but they are also frivolous and suspiciously political in nature. The principal source of repayment for the arena bonds is revenue generated by the arena. An independent consultant has projected that such revenues will be more than sufficient. In the unlikely event that arena revenues are insufficient, the Atlanta-Fulton County Recreation Authority could foreclose on the team and sell it to recoup any outstanding debt. This is probably one of the strongest deals in the country in terms of taxpayer insulation. The proposed new downtown arena would be exempt from property taxes, costing local taxpayers $60 million to $250 million over the next 30 years, depending on which estimate you believe. Tax-paying citizens of my district are tired of seeing billion-dollar corporations receive tax breaks from local governments. Mayor Bill Campbell and the Atlanta City Council continue to pull downtown Atlanta properties off the city and county tax rolls to provide sweetheart deals under the guise of enterprise zones. Of the five districts in Fulton County, my district provides over 40 percent of the property-tax revenue. Downtown Atlanta provides very little because a large portion of downtown's high-rise office buildings are tax-exempt in one way or another.