Fee proposed to ease budget crisis
The Atlanta Journal-Constitution
Published on: 05/23/08
Atlanta professional sports fans could pay more to see their teams play if a city councilman has his way.
Councilman Jim Maddox wants to tack on a $1 surcharge to tickets for professional sports events and major concerts held in the city.
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The idea is to charge the fee on events held at large venues that seat thousands, such as the Georgia Dome, Turner Field, Philips Arena and Lakewood Amphitheater.
The city is facing a $140 million budget shortfall, and Mayor Shirley Franklin has proposed a property tax increase to help fill the gap.
Council members spent the week in budget hearings looking for ways to avert an increase. Maddox pitched the surcharge idea, thinking the money could help defray some of the cost to have police officers work at the venues and for city crews to clean up afterward. Council members noted Atlanta has a $1 surcharge on city-owned venues.
"We need to at some point recapture some of these costs because we are in a [budget] crisis," Maddox, Atlanta's longest-serving councilman, said in an interview Thursday.
Some worry the fee will discourage some performers from doing shows in Atlanta, instead choosing venues in Cobb or Gwinnett counties.
Peter Conlon, president of concert promoters Live Nation, said if that happens, the city would also lose money from hotels, restaurants and other businesses who benefit when there's a big show in town.
"In the long run, it could cost money instead of making money," he said. "Would you want to lose those events over a dollar?"
Some council members are confident such a scenario won't happen.
"There are some venues [in Atlanta] that are not duplicated outside [the city]," said Councilwoman Clair Muller. "We're trying to be fair and break even on [the services] we deliver."
Maddox told the city's finance department to write legislation that he can introduce at the council's June 2 meeting. Finance officials said they'd check with the city's law department to determine whether there are legal obstacles to Maddox's idea.
Thrashers officials declined comment. Officials from Atlanta's other pro sports franchises weren't immediately available for comment.
Braves fan Kevin Lagac had mixed thoughts about the plan.
"It's not that much money, but why should I be penalized for the city's problems?" said Lagac, 38, of Smyrna, shopping at the Braves Clubhouse store at CNN Center on Friday. "If you spend it to ensure the security [at Braves games] remains good, I'd definitely pay an extra dollar."
Some cities, such as Chicago and Cleveland, collect an 8 percent "amusement tax" on tickets to pro football games. Pittsburgh has a 5 percent amusement tax on tickets to pro sports events.
Similar ideas failed in Detroit and Indianapolis.
Atlanta officials have pursued the idea several times in recent years, with little success.
In 1992, then-Mayor Maynard Jackson sought support for a surcharge as high as 10 percent on sports and entertainment events to offset infrastructure and other costs associated with Atlanta hosting the 1996 Summer Olympics. The idea gained little traction with entertainment promoters, related businesses and key state lawmakers.
In 1999, Muller's idea of a $1 surcharge failed because some colleagues worried it would violate contracts between the city and the Braves and Hawks.
— Staff writers Tracy Brown and Chris Vivlamore and researcher Richard Hallman contributed to this report.
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