Fresh Loaf

Mike Dobbins, a former City of Atlanta planning commissioner who now teaches at Georgia Tech, urges voters say ‘no’ to Amendment 2.  If approved, the amendment would allow school systems to participate in tax allocation districts. CL recently endorsed Amendment 2 — click here to see why.

There has been a lot of misinformation spread about TADs and what the constitutional referendum is about. Its supporters have been using tax-generated funding to lobby, and I would say mislead, the public to try to get us to vote for it. TADs allow local governmental jurisdictions to sell bonds to pay for public infrastructure in designated areas where disinvestment and blight bring down the neighborhood and discourage private investment. The bonds are supposed to be paid back from the tax value increases generated by development supported by the improved infrastructure. Many advocates imply that without a yes vote TADs won’t be available to local governments to induce prospective developers’ investment.

But TADs are still available. It’s just that the school portion of anticipated tax value increases must be dedicated to school purposes. So voting no on the referendum doesn’t jeopardize TAD programs; it only reduces the amount of proceeds available.

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It’s one thing for a public agency to argue in support of a cause, says a honest-government watchdog group. It’s another to contribute cash, however.

Common Cause Georgia yesterday filed a complaint with the State Ethics Commission against several public agencies — including the Atlanta Housing Authority, Central Atlanta Progress and the Atlanta Downtown Improvement District — that allege the groups contributed nearly $125,000 to Georgians for Community Redevelopment, a booster group that is campaigning in favor of Amendment 2 on the General Election Ballot.

A successful passage of Amendment 2 would allow school boards to participate in tax allocation districts, a somewhat controversial redevelopment mechanism that uses future increases in property taxes to pay off bonds sold to build infrastructure in blighted areas. TADs have been used throughout the state since 1985 — most notably at Atlantic Station. In February, however, the state Supreme Court ruled that the use of educational funds — in this case, the school’s portion of property taxes — for redevelopment purposes violated the state Constitution.

“Common Cause Georgia fully acknowledges the right of the development community to lobby for the passage of this constitutional amendment,” Bill Bozarth of Common Cause Georgia said in a statement. “That is free speech, and we take no issue with that. However, we do take issue with doing so in violation of the law. We are filing our complaint with the State Ethics Commission because we believe that Georgians for Community Development – a campaign committee organized for the purpose of gaining voter approval of Constitutional Amendment 2, has accepted contributions from several public agencies which are clearly prohibited by Georgia statute from contributing to this kind of political activity.”

The AJC has more on the story here.

After the jump, the full release from Common Cause and links to the recently filed complaints.

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