Beltline bonds delayed because of national economic woes

Beltline bonds scheduled to be priced this week have been delayed until mid-October, a spokesperson for the 22-mile loop of parks, trails and transit says. Project leaders say the bonds — estimated to be worth $117 million — are now scheduled to be issued the week of Oct. 20.

Timing is of the essence, however, as that issuance cuts close to an Oct. 31 deadline to settle outstanding debt on a vital piece of property in northeast Atlanta near Piedmont Park. The property includes transit right-of-way and was purchased late last year from Gwinnett County developer Wayne Mason and his son, Keith. The decision to allocate the majority of Beltline bond proceeds to the Masons was opposed by community groups, but ultimately determined necessary to ensure the future of the project.

Should Beltline leaders not settle the Mason debt by the deadline, the property could risk foreclosure, placing valuable intown property on the real-estate market and in turn, making it harder to secure.

The national market for municipal bonds — for years the go-to financing mechanism that’s kept cities apace — has been essentially closed since the fallout on Wall Street, leaving many projects as grand as the Beltline and as everyday as highway repairs in a lurch. Athens-Clarke County recently put three long-planned sewer treatment plants, to be paid for with bonds, on the backburner until the market improves.

Atlanta is currently sitting on four upcoming bond issuances: The Beltline and Perry Bolton TAD bonds, the General Obligation refinancing bonds, and the Downtown Redevelopment bonds. Dana Boone, the city’s debt and investment chief, says most buyers in the market are hesitant to make purchases until Congress acts on the controversial bailout package. (The U.S. Senate approved the $850-billion, 450-page package last night.)

“The belief is that there are not a lot of issuances going out to market and postponing deals because there aren’t a lot of buyers in the market,” Boone says. “The costs would be too high. The issuers that are pursuing bond issuances are those with high needs.”