GWINNETT COUNTY

Ballpark millions defended

The Atlanta Journal-Constitution

Friday, September 05, 2008

Charles Northrop can barely control his disdain as he talks about the Gwinnett County Commission’s decision to increase its contribution to a new baseball stadium by $19 million. But he still didn’t bother to lobby his elected officials to change their minds.

[ Post your comments below. ]

Recent headlines:

   • Gwinnett County news

“Wouldn’t make any difference,” the Snellville resident said, calling commissioners a “lost cause.”

The idea that the county is mindlessly spending away the county’s financial future for what Northrop called a “baseball boondoggle” is prevalent among the handful of critics who have come forward to question the deal.

Critics point to a countywide hiring freeze that excludes only police and fire positions, a decision by the tax commissioner’s office to cut its workweek to four days, and requests of police and fire employees to save gas as evidence of the county’s financial peril.

But county leaders say they’re making a sound decision that will pay dividends in the future.

“The business model in my mind is as sound as it ever was,” said Commissioner Bert Nasuti, who came up with the idea of bringing baseball to Gwinnett County.

His dream will come true next year when the top minor-league affiliate of the Atlanta Braves relocate to Lawrenceville from Richmond.

When county officials announced the stadium and relocation deal in January, the plan was for a $40 million stadium paid for with $7 million in cash contributions from the county’s recreation fund reserve and $33 million borrowed against future revenues generated by the county and a new car rental tax.

The county also agreed to pay $5 million in recreation reserve money to buy the land on Ga. 20 where the stadium is being built.

Last week, however, county officials revealed the stadium costs would increase from $40 million to $59 million, and that the county would have to make up the difference.

The commission voted Tuesday to approve withdrawing the money from the county’s general fund reserve — the rainy-day savings account for the county’s largest operating fund.

The decision won’t have a direct impact on county operations or tax bills, but will reduce the reserve fund by 12.5 percent, leaving a balance of $133 million.

By the end of the year, according to county finance director Lisa Johnsa, that reserve is expected to fall to about $107 million as county officials draw on the fund to pay for rising costs associated with hiring new personnel and higher price tags for everything from fuel to road fixings.

It will be the first time, Johnsa said, that the county actually has drawn on its reserves. The county has budgeted use of the reserves for years, but higher than expected revenues and lower than budgeted spending have helped prevent that from happening until now, she said.

The fund could be further depleted if the state Legislature does not restore funding under the Homeowners Tax Relief Grant, a program that was to have reimbursed Gwinnett County $14.2 million for property tax reductions that appear on the bills homeowners begin paying this month.

Of that, $13.2 million was to go to the general fund.

If that money is not restored, it could leave the county’s reserve balance at about $98 million. But even that amount is still well above the $69 million minimum reserve the county requires of itself, Johnsa said.

“We have some breathing room in our reserve,” she said.

And while some critics have said it is reckless to spend savings when revenues are at best stagnant and costs are rising, County Administrator Jock Connell said that’s what the money is there for: to prepare for emergencies and take advantage of opportunities the county would otherwise have to pass up.

“We knew a time was coming when we would use these funds,” he said.

Connell said using the reserve fund does limit the options available to county leaders when it comes to making hard choices about reducing services or raising taxes — a decision Connell notes he has been warning is coming for years and could begin to show up as early as this fall as the work of setting the 2009 budget gets into full swing.

But Nasuti said the stadium is an economic development project that eventually will bring the county more in revenues than it costs to build.

“If you stop all economic development activity when there’s a downturn, then you’re going to punish yourself in the long term,” he said.

It’s unclear exactly how much money the stadium will bring into the county.

County economist Alife Meek has estimated that the 72 home games scheduled for the stadium will produce $14.6 million in new economic activity in the county, a small portion of which the county will capture in the form of tax collections.

No one, Meek said, has so far studied what kind of impact the stadium will have on sales and property tax collections for the county. Meek said he expects to conduct that study once he has a better idea of what development around the stadium might look like.

The officials in charge of building the stadium say they believe the $59 million price tag is the final cost, and that the stadium should be open in time for 10 consecutive home games in April.

Commissioners interviewed by The Atlanta Journal-Constitution all said they would be uncomfortable sending any more money to the project.

“If they come back they’re going to have a lot of answering to do,” Commissioner Kevin Kenerly said.

Comments

By Aaalaaan

Sep 7, 2008 6:26 PM | Link to this

Two triple AAA teams so close together will present a lot of competition. This will also greatly diminish beer and hot dog sales downtown due to the decrease of Gwinnettians.
What a great thing to invest your reserve income in, the loser Braves. I guess birds of a feather flock together.
I understand that when the Gwinnett Braves are on the road there will be some wrasslin matches for the locals.

By Twynn

Sep 7, 2008 2:41 AM | Link to this

Commissioners interviewed by The Atlanta Journal-Constitution all said they would be uncomfortable sending any more money to the project.

ıIf they come back theyıre going to have a lot of answering to do,ı Commissioner Kevin Kenerly said.

I'm just trying to figure out what he means "IF they come back...hello Kenerly...YOU are one of "they". Duh.

By LP

Sep 5, 2008 6:16 PM | Link to this

What does anyone expect? It's a bunch of Gwinnett County BUBBAS, elected by equally thoughtful and intelligent people (no, I don't live in Gwinnett county).

To the brain surgeon who thinks "It acually makes quite a bit of sense to have the AAA team so close to the Pros. Think immediate call-ups, quick stints in rehab for IR players, ETC." What planet are you from? It's not like Richmond is half way around the world - it's in the same freakin' time zone for christ's sake (oops - can't say that here in the south without upsetting someone's FAMLEEEEE Values).

Bottom Line: private enterprise is making all the profit, private enterprise should take all the risk. Any elected official who votes to use taxpayer funds for a sports complex of any kind should be voted out of office the very next chance you get.

By DJ

Sep 5, 2008 6:06 PM | Link to this

PUBLIC MONEY SHOULD NEVER BE SPENT TO SUPPORT PRIVATE ENTERPRISE. I DON'T CARE HOW MUCH "ECONOMIC ACTIVITY" IT GENERATES -IF IT GENERATES THAT MUCH MONEY, THEN THE PRIVATE OWNERS CAN FOOT THE BILL THEMSELVES AND MAKE ALL THE MONEY.

TAXPAYERS DON'T GET A REBATE CHECK FROM INCOME THE STADIUM MAKES, DO THEY?

"Itıs unclear exactly how much money the stadium will bring into the county."

"No one, Meek said, has so far studied what kind of impact the stadium will have on sales and property tax collections for the county."

SO HOW DO THEY KNOW IT'S SUCH A GREAT DEAL???? AND HERE'S THE BEST PART:

The officials in charge of building the stadium say they believe the $59 million price tag is the final cost... Commissioners interviewed by The Atlanta Journal-Constitution all said they would be uncomfortable sending any more money to the project....

ıIf they come back theyıre going to have a lot of answering to do,ı Commissioner Kevin Kenerly said.

WHICH MEANS IF THE STADIUM ENDS UP COSTING $75 MILLION, GUESS WHO GET'S TO PONY UP THE ADDITIONAL $16 MILLION???

THAT'S RIGHT - THE TAXPAYER. SCREWED AGAIN.

By Janne

Sep 5, 2008 2:39 PM | Link to this

Red, Barney...You are absolutely right. There's no other possible way to explain these idiot's decisions on this "ballpark". They are taking kickbacks for sure and will be voted out of office if they don't get indicted 1st!

By Scott

Sep 5, 2008 2:37 PM | Link to this

Kenerly, how bout you ask them for some answers now instead of waiting until they come back again? Duh? Anyone home? Or better yet how about providing some answers to the folks that put you there? Oh that's right it's not the homeowners it's the developers you answer to. Some day after he's done making his millions he will hopefully move on.

By DD

Sep 5, 2008 2:24 PM | Link to this

Richard Tucker needs to find a real job instead of mooching off taxpayer money.

By Wayne

Sep 5, 2008 1:39 PM | Link to this

Well it seems it their rush to jump into this disastrous deal with the Braves, our elected official did not bother to determine what the true cost would be. This shows how incompetent a group of individuals we have running this county. A sad day for Gwinnett!

By pop-up

Sep 5, 2008 1:36 PM | Link to this

It acually makes quite a bit of sense to have the AAA team so close to the Pros. Think immediate call-ups, quick stints in rehab for IR players, ETC. That being said, Gwinnett taxpayers got the ol' 'Louisville Slugger' up their dugout in the deal, regardless of what the commish has to say.

By Red

Sep 5, 2008 12:51 PM | Link to this

I thought it was an incredibly stupid idea to have a AAA minor league team so close to their major league sponsor(?). Why in the heck would I want to see AAA baseball when the major league team is so close. No one I've talked to is going to go to the AAA games. It doesn't even begin to pass the common sense test.

Now that the budget has gone up 50% in just a few months and with 7 months to go before completion costs are likely to increase even more, it is obvious the commissioners are complete fools or are getting some serious kickbacks from the developers.

They (the commission members who voted for this boondoggle) should resign today.

[1 2] next

Commenting is open from 8 a.m. to 5 p.m. M-F, except on Tuesday when it's open until 9 p.m.

Post a comment



Remember me?

You may use the following formatting:
Bold: **this text will be bolded** = this text will be bolded
Italic: *this text will be italic* = this text will be italic
Link: [text to be linked](http://www.ajc.com) = text to be linked



There will be a delay of up to 5 minutes before your comment appears.


*HTML not allowed in comments. Your e-mail address is required.

Request a comment be removed

 

Inside AJC.COM

Year in Review

Remembering Skip Caray, Bernie Mac, Isaac Hayes and those who passed away.

Atlanta Falcons

Can the surprising team make the playoffs? Here's what has to happen around the league.

Cookie of the day

We're rolling out a baker's dozen of holiday cookies. Get ready for a treat!

National Travel

Three ways to see Palm Springs: On a budget, moderate or splurge!

Top Music Downloads

iTunes' 2008 top-selling single. It is Rihanna, Coldplay, Lil' Wayne or Leona Lewis?

Atlanta Holiday Guide

More than 10 perfect dresses for the holiday parties you're attending this month.

Atlanta's Favorite Recipes

Here are 12 of the most clicked-on recipes by ajc.com readers, including baked ziti.

Private Quarters - Splurge

Former Braves catcher Javy Lopez and his wife Gina show us their Suwanee home.

Best of the Big A

See who's voted Best Liquor Store in Metro Atlanta. Plus nominate best drive-time DJ.

Search AJC Archives

1985 to present     1868 - 1939 Advanced search

Kudzu.com services Find the right people for the job

Keyword     Business Name

AJCPets » The community for Atlanta pet lovers

Do Good Search for non-profit causes near you