Numerous intown projects will have to be re-examined, and some could be dropped, as a result of the state Supreme Court ruling Monday that prohibits using school funds for redevelopment.

"I imagine a bunch of them will be shrunk, at the least, and some may be killed," said Steve Labovitz, an attorney who counsels developers seeking tax allocation district funding.

Under TAD funding, the city issues bonds to pay for infrastructure during redevelopment of blighted areas. The bonds are repaid with the increased tax revenue the new development generates.

School taxes make up more than half of property taxes, so excluding schools means a huge loss in available TAD funds.

Projects that have already received bond funding are not affected. Atlanta's six active TADs have accounted for 25 percent of the city's property value growth from 2005 to 2007. That's $4 billion.

"This was the best economic incentive cities and counties had at their disposal," Labovtiz said.

The number of affected projects was not immediately available.

Labovitz is providing legal advice for the Hard Rock Hotel and Residences project, scheduled to be built across from the Georgia Aquarium downtown. The $150.5 million project is seeking $18.9 million in public help. Without school tax money, much less public aid will be available.

"We're going to have go back and look at it and see if the numbers are going to make sense," Labovitz said. "It's much too early to tell."

The redevelopment of City Hall East in the Old Fourth Ward is another affected project. Developer Emory Morsberger, who is scheduled to take possession of the property next year, said he had planned to seek $45 million in TAD funding.

"This is a bump in the road and we keep moving forward," said Morsberger, who also has a TAD project at 222 Mitchell St. downtown. "I can't say it will delay them. It's not something our projects are dependent on. Atlanta has come through much worse things than this."

The state Supreme Court ruling reversed a Fulton County Superior Court decision in January 2007 that said school taxes could be included in TAD funding.

Attorney John Woodham challenged the use of school funds for non-school development. He appealed the Superior Court ruling to the Supreme Court.

Statewide, more than two dozen TADs are in place, including one that helped create Atlantic Station in Midtown.

Atlantic Station has already received millions in TAD funding. But the 138-acre mixed-use site is only partially built; it's unclear whether completion of the project will be affected by the court ruling.