Uh-oh. New Falcons stadium will ‘very likely’ require state Capitol approval
Atlanta Falcon fans begin to fill the parking lot tailgating on Northside Drive across from the Georgia Dome before the NFC divisional playoff game against the Green Bay Packers last January. Jason Getz, jgetz@ajc.com.
Note to Matt Ryan: No pressure, and thanks for the 6-0 start. But you and your teammates would be doing your boss a great service if the Falcons were still in the Super Bowl hunt come January.
Arthur Blank will need every advantage he can muster in the state Capitol this winter if he wants that new $1 billion stadium with the retractable roof.
After the quiet 2010 passage of legislation necessary to partially fund the enterprise — by extending Fulton County’s hotel-motel tax until 2050 — the idea was to keep the project away from lawmakers.
The problem? The hotel-motel tax is expected to contribute $300 million to the new stadium. But the bonding capacity for the Georgia World Congress Center Authority, which operates the Georgia Dome and would oversee the new facility, is capped at $200 million.
To raise that cap, and allow the GWCCA to issue bonds on the entire $300 million, would require an act of the Legislature, topped off by the signature of Gov. Nathan Deal.
“We’re kind of in a wait-and-see mode until the World Congress Center and the Falcons complete their negotiations,” said Edward Lindsey, the House majority whip and the highest-ranking Atlanta lawmaker in the General Assembly. “Until we know what the deal looks like, it’s hard for us to speculate as to what we may be doing.”
But Lindsey admits it is “very likely” that the GWCCA bonding cap will have to be raised.
And that means 236 state lawmakers will be asked to pass judgment on the merits of any funding package agreed to by the Falcons, the GWCCA and the city of Atlanta.
The prospect already has many state lawmakers running for cover. And it will surely test the strength of Atlanta Mayor Kasim Reed’s remarkable relationship with the Capitol’s Republican leadership.
There are political arguments to be made in favor of the enterprise. A hotel-motel tax is paid primarily by tourists who don’t vote, and the money raised from the levy can’t be shifted to any other purpose — education, for instance. Further, through the World Congress Center, the state has a 35-year history of supporting — some would say underwriting — Atlanta’s convention-entertainment industry and, for the past 20 years in the Georgia Dome, the Falcons.
Construction of a new stadium would almost certainly generate much-needed jobs among metro Atlanta’s hardhats.
And yet the optics are difficult.
Dedicating public monies of any sort to a home for gladiators is a hard argument to make when teachers and state troopers are being laid off. It is especially difficult for a Republican-dominated Legislature that has given up on Keynesian economics and believes in austerity as strongly as it believes in salvation through baptism. (With scriptural exceptions for certain automotive and biotech plants, of course. And the Port of Savannah.)
Comparisons are already being drawn to this summer’s failed transportation sales tax vote, which most Republicans came to view as radioactive — leaving the mayor of Atlanta as the campaign’s primary spokesman, shouldering much of the risk.
Like the T-SPLOST, a state Capitol fight over a Falcons stadium could also unite right and left. This summer, state Sen. Vincent Fort, D-Atlanta, paired with tea party conservatives to oppose the sales tax. The Falcons stadium could provide an opportunity for a reunion.
“I’m not convinced that stadiums bring the economic development that their advocates say they do,” Fort said recently.
Late this summer, Invest Atlanta — the city’s economic development arm — began soliciting ideas for the development of 55 acres north of Turner Field. “Mixed-use proposals should be designed to provide 10,000 parking spaces, enhance the fan experience, support the creation of a vibrant urban neighborhood and support the Atlanta Braves’ business enterprise,” the request declared.
The project has the timely advantage of meeting Fort’s objections and persuading the Braves that they’re not being ignored.
Actually, the vast majority of lawmakers in the Capitol are on record in support of an increase of the lending cap for the GWCCA — and thus the construction of the new Falcons stadium.
The language was snuck into Senate Bill 140, which passed in the final hours of last year’s legislative session. The governor vetoed the bill, citing the sneakiness of the tactic.
We’re told that Deal will not stand in the way of legislation for a new Falcons stadium next year — but will also have to be convinced that it will not add to the state’s debt burden.
After we chatted last week, Lindsey — the House Republican whip — emailed a written list of his concerns that would have to be met in order for a new Falcons stadium to win his support. One of the most important was that the state would assume no financial obligations, directly or indirectly.
“Looking back,” he wrote, “I believe the governor was right two years ago to veto the original bond authorization without seeing a final deal in place. In these difficult economic times, we need to make doubly sure that any project is economically sound.”
- By Jim Galloway, Political Insider
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88 comments Add your comment
Teetotaler
October 27th, 2012
5:59 pm
Stop paying for all football, that’ll teach those free-loaders, right Bible-thumpers?
cc
October 27th, 2012
6:18 pm
GT 2011@4:47 pm:
I know how Turner Field was funded and I know the old stadium was outdated, but I still loved it!
Oh, the memories . . .
cc
October 27th, 2012
6:20 pm
“The Obama economy is booming and business just want’s their share.”
If you think this economy is booming, I’m sorry that you’ve never seen a good economy! One thing is for sure: this economy will be without Obama as president as of January 2013.
Nativebird
October 27th, 2012
6:25 pm
I’m a huge football fan…..and still think that Atlanta does not need a new football stadium. The dome is fine.
Kris
October 27th, 2012
6:45 pm
What is the percentage of utilization at the current stadium? Will we have to borrow money from China?
Save PBS , Georgia is only 48th in education (you proud of that nattie and all the GOP slime).
Fix our current school system.
VOTE NO ON CHARTER SCHOOLS
Lane
October 27th, 2012
7:50 pm
Please don’t tell me that our state money spenders think more of the Atlanta Falcons than the people who keep this state running that haven’t received raises in five years!!!!!!!!!!!!!!!!!!!!!!!!
Shine
October 27th, 2012
8:04 pm
Let Arthurpoo finance his own stadiums. We are getting a millage rate increase for education thanks to the Corporate welfare worshippers in the Gold Dome cutting education funds. I have had enough of Republicans and their little experiment being in control of Georgia. I helped vote them in and I am going to start voting them OUT!!
Kris
October 27th, 2012
8:54 pm
Shine ” I am going to start voting them OUT!!”
I’m with you..
Impeach DEAL!
Recall REED!
Arrest or recall the GOP legislature…or example..Ethics or lack of….
Re-elect President OBAMA
Save Big Bird!
Let Blank(ing) China Pay For IT w/ Home Depot $$
October 27th, 2012
9:16 pm
Home Deport and Wal-Mart, like Mitt Romney, are big promoters of Communist Chinese goods and have given lots of jobs to Commie China. So, let China pay for the stadium. They might throw in a bullet train, since the GOP Tea Party players want to destroy passenger rail in America. Killing off manufacturing wasn’t enough, but we can go watch football and tractor pulls.
Keep voting GOP, and your property will be indentured by the government [stadium] bonds to make the rich richer, suckers.
Watcher...
October 27th, 2012
9:35 pm
You may want to consider being nice the ATL surburbs. You and Kasim will need us!
cc
October 27th, 2012
9:49 pm
Spare a turkey’s life!
Deep fry Big Bird for Thanksgiving!
Romney/Ryan – 2012!
Kris
October 27th, 2012
9:55 pm
@cc/td…td/cc
Remember what happened the last time you fried a TURKEY…you set your house on fire…take your medication’s..
Re-elect President OBAMA
Save Big Bird!
cc
October 27th, 2012
10:00 pm
Hris/Bernie . . . Bernie/Kris
That wasn’t my house: it merely was the flames of the Obama administration going down! Smoke your weed . . .
President Romney, January 2013!
Serve Big Bird with dressing and all the trimmings!
Kris
October 27th, 2012
10:33 pm
My name is not Lisa!
I do not fry Yellow BIRDS!
I’m not a republican (raping freaks)!
I’m Not a PROUD DEMOCRAT!
\My name is not Bernie.
@CC.td….td/cc what ever you are!
Take your medication or have your mummy turn out the lights.
http://www.atlantafireextinguisher.net/#overview
Big Dawg
October 27th, 2012
10:39 pm
It’s very simple. Have the City of Atlanta sign over control of the airport to the state of Georgia and then let the state finance the stadium. I’ll be telling me state legislator to not drop the ball on this one.
Dc
October 27th, 2012
11:59 pm
Was just at the City of Rufuge in vine city where a number of homeless and skillless people are being trained so they can get jobs in atlantas hospitality industry…amazing blessing to see people finally getting an oppty to prep for a real job.
Now…how will this tax impact our tourist and business travelers? Will it cut back on oppty for these newly trained workers? Or would losing the falcons be more of a negative impact to them? Not an easy answer
angry Voter
October 28th, 2012
3:27 am
@Dc – If it’s a choice between having the Falcons’ eight home games a year in GA or being held hostage to the demands of Mr. Blank, it’s no contest. Good riddance. End of story. Let the business community squawk about how important it is to have the Falcons. As we learned this summer, the more the business community is in favor of something, the less likely it’s going to be something we the people actually want, need or support.
Attack Dog
October 28th, 2012
5:36 am
Just think. The Koch Brothers are “investing” more than $300 million just for the media and conservative legislators to keep on treating Dixiecrats like mushrooms.
cc
October 28th, 2012
6:55 am
“I’m Not a PROUD DEMOCRAT!”
You’re a rare commodity, a humble dimocrat!
Realist
October 28th, 2012
7:29 am
If Atlanta wants to stay relevant in the pro sports world, then the new stadium has to be built. The Georgia Dome seems new, but it has been eclipsed in a lot of ways by the newer stadiums out there. It does sort of suck that taxpayers and tourists have to fund something for the benefit of the NFL owners, but that is the way it is and the cities do receive some secondary benefits, not as much as the NFL likes to say, but they do. So we have to put our negative thoughts aside and encourage our lawmakers to fund this stadium if we want another Super Bowl in Atlanta and have the Falcons playing in a first class facility.
Angry Voter
October 28th, 2012
8:20 am
@Realist – You miss the point. Most of us don’t care about staying relevant in the pro sports world. Good riddance. The NFL is not something we taxpayers need to pay for. We shouldn’t put our negative thoughts aside. We should make it very clear that this is not necessary, wanted or even a luxury we can afford. Enough already. If that means the Falcons give up their advantages of being in Atlanta and move on, so be it.
mehlman rings twice
October 28th, 2012
8:21 am
Just like I’ve always said, “Conservatives have never had a problem with income redistribution”. Just look at Neil Bush and Enron.
Angry Voter
October 28th, 2012
8:24 am
@Realist – How would you feel if someone went into your bank account and took money to build a new, unneeded stadium? Would you put your negative feelings aside as your other checks bounced because other people decided there was a better use for your money? What is being proposed is the same thing. It’s stealing our money to benefit Mr. Blank’s investment. We shouldn’t put negative feelings aside when it comes to stealing our money. We should speak up and not let ourselves be victims of these greedy crooks.
Angry Voter
October 28th, 2012
8:30 am
One more thing – Why not put the stadium in Cobb, Gwinnett, Fayette or Cherokee and let the taxpayers of that county pay for it? Why is it always expected that the citizens of Atlanta, Fulton and/or DeKalb have to fund these things? We pay for MARTA, even though others use and benefit from it. We pay for Grady, and, in return, get indigent patients dumped here from around the region. It’s time for the outer counties to step up. Put it in Cobb, paid for by Cobb residents, and I’m 100% in favor of a new stadium.
Whirled Peas
October 28th, 2012
9:03 am
I think the new stadium should be financed by a special tax on the salaries of newspaper journalists. They don’t do anything requiring any special talent anyhow.
cc
October 28th, 2012
9:15 am
At a time when many people are struggling financially to simply pay their bills and put food on the table, a request is made of them to finance a new stadium for sporting events. The financing of such a project will affect not only the residents of the City of Atlanta and Fulton County, but all visitors and shoppers who go to Atlanta. In today’s economy, football and other sporting events must take a back seat, deferring to the necessary expenses of living.
If Blanks wants a new stadium, let him organize a funding and investment consortium for that purpose. If it is such a good deal, he will have no problem finding investors.
Angry Voter
October 28th, 2012
9:49 am
@cc – Or like his Home Depot partner Marcus did with the Aquarium, Blank can foot the bill for the entire thing and donate it to the city, county or state as a lasting legacy. Marcus showed what it means to be a class act; a mensch. Marcus didn’t put his hand out and ask us to fund his next money-making venture, instead, he did something reminiscent of the Carnegies, Vanderbilts or McArthurs. The Aquarium has definitely had a positive economic impact and given Atlanta a crown jewel.
Ex Carpenter
October 28th, 2012
9:54 am
Just think about all of those construction jobs that will be created building that new stadium….for the ILLEGAL ALIENS…also known in political circles as the “Latino Community”… who seem to be still hanging around in droves ever since those new worthless crackdown laws were passed.
And everybody wonders whats wrong with the economy…duh.
Buckhead Boy
October 28th, 2012
10:23 am
To introduce a few facts: The tax is already levied — has been for decades. No increase in rate is being proposed. Its incidence falls only upon transient stays in hotels. That portion of the rate that will be allocated to retirement of bonds funding a new stadium may only be expended for a purpose promoting visitation. You can argue that the tax rate is too high and should be reduced if you have a special sympathy for transient guests at hotels. But, to conflate this issue with people who “people are struggling financially to simply pay their bills and put food on the table”, and to suggest that it “affect(s) not only the residents of the City of Atlanta and Fulton County, but all visitors and shoppers who go to Atlanta” is simple ignorance.
Kris
October 28th, 2012
11:33 am
In the event (heck this is GA citizens be dammed) pay outs, from the Gold Dome all the ay down….
Shady DEALS and corrupt politicians….
We get this stadium (waste of $$$$) Would we get a Sports team that play games and Win…Not!
So I shell out $1000.000 to see a game and the TEAM looses…..
Last in the season like Education in Georgia…..last.
Fix our School system.
Angry Voter
October 28th, 2012
11:39 am
@Buckhead Boy – Don’t let the facts get in the way of your predetermined positions…. The tax currently collected to pay off the Dome debt will continue to be collected to pay off the Dome debt. Increasing the tax will drive away hotel business. We, the residents of Atlanta, will be on the hook if enough money isn’t raised through the special tax to cover the old and new debt, which would, of course, likely happen. Not to mention that most municipalities use the hotel/motel tax to help defray expenses necessary to accommodate hotel/motel guests and/or municipal expenses. If we left the tax in place and paid off the stadium that still hasn’t been paid off, the tax money could then be used to fund other, important things. That doesn’t include the boondoggle.
Good try on the double-talk and hiding the pea under the shell, but if it costs money, it’s not free. While the business community wishes we were stupid enough to believe there is a free lunch, we are smart enough to understand what the flimflam artists are trying to get away with and won’t let it happen.
MysteryMoves
October 28th, 2012
11:39 am
I am NOT in favor of taxpayers bearing the burden of a new facility.
Jussthinkin'
October 28th, 2012
11:51 am
Just read some lines from a few of the left-leaners and thought: Are these some of the lines from a new movie to be announced: “Obama Flew Over The Cookoo’s Nest?”
•Our majority ’so called conserrrrrrrvative’ Congressional delegation dang near killed the country arguing over a debt ceiling that was necessary for everything the country needs to do business.
• God made rich people special. We should worship the rich and the dirt they think that we are.Second the taxes that are raised can only be spent on things such as a new stadium/dome, so WHY NOT?
• Stop kidding yourself dude, the Rich always get what they want! Ask Romney, nobody gives a D what the fans think
• The Obama economy is booming and business just want’s their share.
• If you live outside the perimeter, you’re dead to us anyway.
• Save PBS , Georgia is only 48th in education (you proud of that nattie (sic) and all the GOP slime).
• Re-elect President OBAMA
• Save Big Bird!
• Just think. The Koch Brothers are “investing” more than $300 million just for the media and conservative legislators to keep on treating Dixiecrats like mushrooms.
• Just like I’ve always said, “Conservatives have never had a problem with income redistribution”. Just look at Neil Bush and Enron.
Selah
honested
October 28th, 2012
12:09 pm
Buckhead Boy,
While the gist of your description of the tax is somewhat accurate, what evidence suggests that a new, different or additional football stadium is the best use for consuming ALL the tax revenue for the next 38 years?
$1.2 billion for new stadium? - Page 9 - City-Data Forum
October 28th, 2012
1:21 pm
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BuildIt
October 28th, 2012
1:26 pm
I say build it. If the bonds are backed by the hotel tax, local citizens won’t have to pay for anything – I guess those who are complaining missed that point. It’s an economic development project that will support a mixed-use site in a vital area. The Falcons will be just one of the many benefactors.
Steve green
October 28th, 2012
1:27 pm
Apparently the hotel/motel tax exists only as a giant slush fund for the GWCCA to dip into for whatever reason the choose as long as they stay below their 200 million cap. Personally I’d be on favor of repealing the tax altogether if we could even do that . Probably, though, we are already on the hook for the bonds.
Steve green
October 28th, 2012
1:49 pm
That 300 million is public money. I don’t care if it’s a hotel/motel tax or a tax on grits. Its money that belongs to the people of this state and ought not be squandered. Giving 300 million to a billionaire to build a new stadium that he doesn’t even need is an outrage. I’ve already contacted every state legislator and senator I can find an email for and voiced my opposition. Suggest y’all do the same.