Cash fuel for Beltline

For the past few years, Atlanta’s ambitious Beltline project has struggled to get off the ground without much in the way of funding.

But that is all set to change. The Atlanta City Council late Monday night approved the sale of $117 million in bonds for the Beltline, the first big cash infusion for the project, which aims to redevelop aging freight rail tracks that circle downtown into a network of transit, trails and parks.

The bonds will be backed by increases in property tax revenue along the 22-mile route.

Among other things, the money will be used to buy land for the future transit line and provide subsidies for affordable housing.

The first bond sale was planned for 2006, but the issuance was successfully challenged by a Buckhead lawyer, who claimed the state constitution forbids school property tax money from being spent on redevelopment projects like the Beltline.

That bond sale was projected to be $200 million. The Beltline bond sale now being prepared relies only on city and county property tax revenues.

The two-year delay caused problems for the Beltline, making it difficult for officials to hire staff, secure right of way and obtain land for future parks.

In approving the bond sale, the council also gave its OK to a five-year spending plan that includes up to $45 million to complete the sale of a key 4 1/2-mile segment of the Beltline in northeast Atlanta owned by Gwinnett County developer Wayne Mason. Some critics have questioned the expenditure, including the city’s official Beltline oversight committee, made up of community leaders and residents.

The group wants to ensure that Beltline funds are spread equitably along the entire loop, particularly in economically hard-hit areas that haven’t seen much development. The northeast corridor cuts through the most affluent part of the Beltline.

The bond issue will be the first of several planned in the next 25 years projected to raise $1 billion. The Beltline, one of the largest public works projects in Atlanta’s history, has a projected $2.8 billion budget.

The City Council’s approval is the final step before the bonds are actually sold. A judge approved the bond sale three months ago.

TASK FORCE RECOMMENDATIONS

A Beltline task force on Tuesday announced recommendations to encourage affordable housing along the loop. Up to $120 million in tax funds may be available during the next 25 years to subsidize housing costs. The recommendations encourage:

> Housing developments that cater to a mix of income levels.

> Affordable housing to be spread along all segments of the Beltline.

> Developers to build subsidized housing for low-income families.

The first bond saleshould bring in about $14 million for affordable housing. Developers’ applications will be reviewed by city officials. City policy does not allow Beltline officials to require subsidized units.

—- Paul Donsky

 Staff
Map locates PROPOSED BELTLINE and adjoining neighborhoods.