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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Congratulations, fellow citizen! If things go according to plan, come Friday at 10 a.m. you’ll be a co-owner of 66 acres of prime property in Northeast Atlanta.

The Atlanta City Council today approved 9-1 the issuance of $64.5 million of Beltline TAD bonds. Councilmember Felicia Moore was the lone vote against the deal.

Atlanta Beltline Inc. Finance Director Richard Lutch says the project will meet the Oct. 31 deadline set by Gwinnett County developer Wayne Mason and settle the $45 million debt Mason is owed for property near Piedmont Park.

Beltline leaders will also use $3.5 million of the bond funds to buy out the remaining stake in the property held by Barry Real Estate and Ben Rainey, its private partners in a joint venture that was created to purchase the land from Mason late last year. Beltline leaders must then must transfer the property to the Atlanta Development Authority. (The land must be owned by a public agency to meet tax-exempt bond regulations.)

After the vote, Tax Allocation District Advisory Committee Chair Eugene Bowens, Sr. said that the citizens’ group — while supportive of the deal — still feels it’s not being involved enough in how funds from the TAD bonds are used. By law, the committee is charged with ensuring those public funds are spent in a “fair and equitable manner.” Numerous times in the past — most notably when Beltline leaders decided to spend a large chunk of funds to pay off the Mason property in affluent Northeast Atlanta — the committee has said they have been kept out of the loop. He said TADAC members were only notified of today’s bond deal at a meeting last night with Beltline leaders.

This development raises many questions, such as what direction the project takes now and where it will focus its energy, how the city plans to act on property that it must rezone if it plans to sell, and how future allocations and deals will be handled. Feel free to chime in below if you have any thoughts.

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If Atlanta City Council gives them the OK, bonds set to be issued this week to pay for Beltline projects will be worth $64.5 million — a much lower amount than the $117 million initially anticipated before bond markets ground to a halt because of Wall Street’s meltdown.

Atlanta Beltline Inc. CEO Terri Montague says more bonds will be issued in mid-2009. The tax-exempt bonds will be split in half and sold to Wachovia and Suntrust with a 6.2 percent interest rate. She says the reason the offering is much smaller is because debts — most notably, the Wayne Mason property in the 22-mile project’s northeast quadrant — must be paid. Additional bonds are planned to be issued in in mid-2009. Montague says the affordable housing component will receive roughly $8.5 8.8 million.

Beltline leaders will also have to buy out Ben Rainey and Barry Real Estate, its private partners in a joint venture that purchased the 66-acre Mason property, to meet regulations established for tax-exempt bonds. Montague says the two partners agreed to settle for $3.5 million — they originally wanted $10 million.

Beltline officials appear before Atlanta City Council at 3:30 p.m. to seek its approval before proceeding with the deal. Should City Council fail to approve the bond offering, the city would lose both the property and $26 million its already paid to the Masons.

Should voters approve Amendment 2 on the General Election ballot, Montague says, the next Beltline TAD bond offering could potentially be much larger.

More updates to come.

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Sources tell CL that Atlanta City Councilmembers were given notice that a special-called meeting will be held at City Hall tomorrow at 3 p.m. Details are vague, but the event could mean developments are underway for the 22-mile loop of parks, trails, transit.

Why? Well, as we’ve been reporting, the Oct. 31 deadline for Beltline leaders to settle the debt on property purchased from Gwinnett County developer Wayne Mason is drawing near. The property — a 66-acre parcel of land and transit right-of-way located near Piedmont Park in the project’s northeast quadrant — generated controversy this summer when Beltline leaders decided to allocate nearly half the TAD bond funding to settle the debt. If it’s not repaid, the Mason property could enter foreclosure.

Because of the virtually shutdown bond market, those TAD bonds have been delayed until the project’s financial wizards could secure the best possible deal. Beltline leaders would most likely have to brief City Council on their progress.

Regardless, we’ll be there and update once we hear word.

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So you’d like there to be more public transit in Atlanta, want to see more smart-growth development, but you still don’t know exactly what the Beltline is all about. The Beltline Partnership, the 22-mile project’s fundraising arm, operates twice-a-week tours of the proposed loop of transit, trails, parks and development, so that’s one way.

Another way is to help clean the project up. Last year, volunteers cleaned up the Beltline’s southwest portion. On Nov. 8, Keep Atlanta Beautiful and other partners plan to do the same in the northeast quadrant.

Here are the details:

Last week, TruGreen LandCare, lawn and landscape professionals, donated their time and expertise to prepare the area for volunteers by accomplishing some of the heavy lifting.

On Saturday November 8, Atlanta BeltLine Inc., Ponce Park, the Historic Fourth Ward Park Conservancy, City of Atlanta, Park Pride, Trees Atlanta, Atlanta Community ToolBank and PATH are orchestrating the northeast corridor BeltLine clean-up. This is necessary to achieve the clean-up’s goal of taking a first step in creating a useable connection between Piedmont Park and Freedom Park. See images below.

Volunteers will pick up litter and remove kudzu from trees along the 1.5 mile stretch. You can register as a volunteer for the clean-up at www.keepatlantabeautiful.org.

(Photo courtesy of TruGreen LandCare)

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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.”

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While the Beltine mucks through the financial and political bogs holding back its progress, photographer Meryl Truett opens her exhibit Picturing the Beltline this Fri., Oct. 3 at Barbara Archer Gallery.

Truett brings her sleepy Southern aesthetic to a series of photos documenting summer and early fall along the neglected set of tracks that encircles the city.

Artist’s reception Fri., Oct. 17, 7-9 p.m. Through Nov. 1. Free. Thurs.-Fri., 11 a.m.-6 p.m.; Sat., 11 a.m.-5 p.m. 280 Elizabeth St., #A012. 404-523-1845. www.barbaraarcher.com.

(Photo by Meryl Truett)

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One of the Beltline’s goals is that all Atlantans — regardless of income — will be able to enjoy the 22-mile ring of parks, trails and transit. Last week, the Atlanta Development Authority approved a set of recommendations that could help make that happen.

Andy Schneggenburger, executive director the Atlanta Housing Association of Neighborhood-based Developers and a member of the advisory board that wrote the recommendations, says the authority decided to offer incentives to developers who include community land trusts and energy efficiencies in their projects, as well as those who give city residents, Beltline-area residents and public-service employees first dibs. Developments that offer 10 percent of new housing units at rents affordable to Atlantans making less than $20,760 would win extra points in competing for Beltline grants.

Beltline leaders will vote on the recommendations this week before sending them to City Council.

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OBAMA’S SECRET: The Democratic presidential nominee has picked a running mate. But he’s not gonna tell you who it is.

NO-SHOW REED: After hyping John McCain in anticipation of last night’s Atlanta fund-raiser (and after the GOP candidate allegedly told him ‘no thanks’), baby-faced former Christian Coalition prez Ralph Reed decides not to grace the event with his presence.

COUNCIL HEARTS TADS: Late last night, Atlanta City Council green-lighted controversial Tax Allocation District funding for the $125 million Center for Civil & Human Rights museum and the multi-billion-dollar Beltline transit-and-trails project. More than $200 million was approved — which marks the first infusion of government funds for the Beltline.

NO PRESSURE: The Georgia Bulldogs are the top-ranked college football team this year. It’s the first time the UGA team has started a season with the top ranking. Last year, the Dogs finished No. 2.

DESPERATE DEPOT: Atlanta-based Home Depot Inc. expects profits to tumble 24 percent in this weakened housing market year. Still, the world’s largest home-improvement company reported unexpectedly high profits this quarter.

SICK VITAMINS: A Marietta man claims his daily vitamin caused his hair and fingernails to fall out. Apparently, he’s not the only one.

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MARTA and Atlanta Beltline Inc., the nonprofit agency planning the 22-mile of parks, trails and transit, will hold public workshops to discuss the massive project’s possible environmental effects on Tuesday and Thursday. The four meetings are scheduled both in the afternoon and the evening and mark the beginning of a two-year study.

After the jump, a pretty graph from the folks at MARTA listing the details for each meeting.

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SPY VS. PIE: The AP reports that Julia Child left a career as a WWII-era spy to become a chef; Child is one of several well-known Americans whose previously secret spy career was revealed this morning, as the personnel files of the pre-CIA Office of Strategic Services were declassified.

SHOOTING: The chairman of the Arkansas Democratic Party is dead after a recently fired Target employee mysteriously drove more than 30 miles to Little Rock and shot him.

LANIER: Georgia officials asked SCOTUS this morning to overturn a February appeals-court ruling requiring congressional approval for the state to take more water from Lake Lanier to quench Atlanta’s growing thirst.

STREETCAR NAMED DESIRE: The NYT reports on the resurgent popularity of streetcars in at least 40 U.S. downtowns such as Cincinnati, New Orleans, Houston and Charlotte. Not mentioned: Atlanta’s distant visions for the Beltline and Peachtree Street streetcar.

SACS: The accrediting agency is in Clayton County today, part of its review to determine whether the school system will be the first since 1969 to have its accreditation revoked.

SCRATCH PAPER: Cox Newspapers is selling all but three of its newspapers.

RESCUE 911: The recent death of a Johns Creek woman highlights problems in the Fulton County emergency services, as the 911 operator who sent emergency crews 30 miles in the wrong direction had a long history of such routing mistakes. She also repeatedly was disciplined for sleeping on the job, chronic tardiness and fighting with co-workers, and records show her behavior wasn’t uncommon in the department.

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Terri Montague looked disappointed.

The CEO of Atlanta Beltline Inc., the nonprofit agency tasked with planning and building the 22-mile project, stood before the Atlanta City Council’s finance committee on Wednesday to present how the group planned to spend an estimated $117 million that was to be generated from the first round of TAD bonds. Councilmember Felicia Moore asked Montague what was the rush — council was about to go on recess and the Beltline has until Oct. 31 to settle an outstanding debt for a key piece of property near Piedmont Park. Moore was planning on tabling the item, she said.

What’s the rush? Well, to put it simply, Beltline leaders are against the slow-moving bureaucracy that is modern-day government. Council returns from its summer sojourn in mid-August and the Beltline has investors coming to scope out the project the following week. Montague said the investors need to have a sense that the city is truly committed to the project. It needs the money.

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Before the Beltline can unite and connect Atlanta, it first has to experience Atlanta’s tale of two cities.

Visit a study group north of I-20, say near Buckhead and Tanyard Creek, and residents fume about bike-trail paths. Venture down to Metropolitan Parkway and in southwest Atlanta, and you hear pleas for economic development, jobs and, most importantly, attention.

Which is why last week’s decision by Beltline leaders to spend almost half of the $98 million in initial bond proceeds to pay for a sliver of land in northeast Atlanta has many concerned that all the benefits of the Beltline are going to be felt north of I-20.

Even the advisory committee formed to oversee Atlanta Beltline Inc. is critical of the decision.

“Based on our assessment of what the Beltline wants to do, there is no equitability in the allocation of those dollars when you’re going to use 80 percent of it in the northeast quadrant,” says Eugene Bowens, chairman of Tax Allocation District Advisory Committee.

At issue is a 4.5-mile stretch of land owned by Gwinnett County developer Wayne Mason and his son, Keith. The Masons purchased the land near Monroe Drive and Piedmont Road for $26.5 million in 2004, and announced plans to build two high-rise towers. The Masons also promised to donate their railroad right-of-way to the Beltline project.

Read the rest of this article here.

(Photo by Joeff Davis)

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A Beltline advisory committee charged with ensuring the 22-mile project sticks to its vision of connecting Atlanta in an equitable manner told Beltline leaders the project should not spend a large chunk of its first allocation of funds on a vital piece of property that runs along Piedmont Park.

In a polite-yet-firm letter addressed to Atlanta Beltline Inc. CEO Terri Montague, Eugene Bowens, Sr., chair of the independent advisory committee, said the group could not agree with what’s looking to be a necessary move — use more than half estimated $122 million that will become available later in the year to pay off loans and debt for the land.

“TADAC is deeply concerned that using such a large portion of the bond proceeds in this way and for the Northeast quadrant alone is not equitable or appropriate and that other key BeltLine projects will be limited or deferred altogether,” Bowens says. “While TADAC acknowledges ABI’s need to be responsive to the dynamic and often unanticipated demands of the market, TADAC’s understanding of and limited involvement in the decision-making leading up to the transaction, together with the other concerns that are raised in this letter, prevent us from supporting the transaction (and its subsequent refinancing).”

The committee advises Beltline leaders to try to alter the financing deal, reduce funding for the northeast section of the Beltline that encompasses the property, and dedicate future sales of land to other parts of the Beltline.

The property is owned by Gwinnett County developer Wayne Mason and his son, Keith. ABI and Barry Real Estate entered a joint agreement to purchase the land after a prior deal with the father and son ended in the two walking away frustrated by the city.

The issue strikes at the core of th