Dispute between APS, city threatens to slow Atlanta Beltline progress (real estate, 2014)

[LynnHarris]

"A contract dispute between Atlanta Public Schools and Atlanta’s city government threatens to slow the progress of the Atlanta Beltline, reports WABE.

The station notes that in 2005 when the city and APS entered into a contract spelling out how the Beltline would be funded, APS agreed to give up some of its property tax dollars. To offset the loss, the city promised to make fixed annual payments to APS. WABE says payments were based on the assumption that real estate prices would always rise..."

Full Story: Dispute between APS, city threatens to slow Atlanta Beltline progress - Atlanta Business Chronicle

[red92s]

An alternative headline might be:

"Dispute between APS, city threatens to slow childhood education progress"

The Beltline is a great, great thing but I'm unconvinced it's more important than properly funding our schools.

[LovelySummer]

I agree. What is this big mess about and why is APS (who is supposed to be in the business of education) agreeing to anything with the beltline people? WTH?

Originally Posted by red92s

An alternative headline might be:

"Dispute between APS, city threatens to slow childhood education progress"

The Beltline is a great, great thing but I'm unconvinced it's more important than properly funding our schools.

[jsvh]

Beltline is funded by a TAD (Tax Allocation District) for properties next to the Beltline which keeps the same property taxes going to the city and schools and any increase in property value then gets directed to the TAD. Well in order to get APS to agree to the TAD it promised to pay ever increase fixed amount each year to APS.

Problem is that was 2006. Then the bottom fell out and values plumeted. But the Beltline still owes APS the huge fixed payments even though the property values are barley above their 2006 levels. I think I read that the amount APS is owed is more than the Beltline TAD is bringing in.

It was a bad deal for whoever originally signed it, but few anticipated the housing collapse. But the contract should be renegotiated as the Betline TAD was not designed as a windfall for APS funding and the Beltline will suffer a lot if this does not get renegotiated.

[Nast]

Was wondering when this would show up on the board for discussion, especially considering the, shall we say, less than gracious way the Mayor handled it last week.

Atlanta mayor, superintendent in standoff over beltline funds | www.wsbtv.com

Reading a few other articles on the matter, it sounds like APS has been open to renegotiations, but the COA has been slow to respond.

[red92s]

“The Atlanta Beltline is the most popular public project in the entire city of Atlanta -- by a lot -- more popular than APS,” Reed said.

Cheers to funding the most popular projects in the city, not the most important ones, right?

[jsvh]

Originally Posted by Nast

Reading a few other articles on the matter, it sounds like APS has been open to renegotiations, but the COA has been slow to respond.

Source? Sounds like the COA has been trying to get get the contract updated for a while but APS is not interested in any serious changes.

[jsvh]

Originally Posted by red92s

“The Atlanta Beltline is the most popular public project in the entire city of Atlanta -- by a lot -- more popular than APS,” Reed said.

Cheers to funding the most popular projects in the city, not the most important ones, right?

Schools should be well funded. And APS has one of the highest tax rates in the metro. However the Beltline TAD should go to the Beltline. If we can get it built out then APS with end up with significantly higher tax revenues at the end of the TAD.

[J2rescue]

Originally Posted by jsvh

Schools should be well funded. And APS has one of the highest tax rates in the metro. However the Beltline TAD should go to the Beltline. If we can get it built out then APS with end up with significantly higher tax revenues at the end of the TAD.

I agree. Not to mention the fact that according to the last stats I saw APS has the highest expenditures per student by far among metro area public school systems. Funding doesn't seem to be a problem.

[Nast]

Originally Posted by jsvh

Source? Sounds like the COA has been trying to get get the contract updated for a while but APS is not interested in any serious changes.

Here are the articles I was referring to:

APS superintendent wants to resolve Beltline debt ASAP | www.myajc.com

http://www.myajc.com/news/news/local/beltline-misses-another-payment-to-schools/ndTm6/#6e250691.3789520.735389

Mayor Reed loses composure over Beltline funds owed to APS | Financial Deconstruction


Specifically, I was looking at quotes like the one in the second AJC article:

"The school system’s chief financial officer, Chuck Burbridge, on Jan. 6 emailed Jim Beard, the chief financial officer for the city of Atlanta, with an example how the city could structure a combination of property and service concessions to make the school system whole:

• Atlanta Civic Center: $42 million (value has yet to be firmly established)
• Water service: $36 million spread of 17 years
• School police service: $84 million over 12 years

Alternatively, the city could build a $20 million fiber network for the school system, Burbridge wrote."

I suppose you could argue whether these are indicative of any serious changes, but they do indicate that APS would be willing to trade an outright cash payment from the Beltline for other city services, which in my mind indicates flexibility. Are you seeing additional stories that imply otherwise? I'd be interested in reading them.