Atlanta's economic development authority on Friday helped the oft-delayed National Center for Civil and Human Rights avoid losing millions in construction funding.
The board of Invest Atlanta -- formerly the Atlanta Development Authority -- agreed to give the downtown attraction $28.5 million in Westside tax allocation district funds. The money will help get work underway on a museum that will now be built in phases instead of all at once as originally planned.
A tax allocation district, or TAD, is funded by a portion of property taxes collected in a geographic area. Those taxes are used to fund economic development projects that benefit those geographic areas.
Cheryl Strickland, who oversees Invest Atlanta's tax allocation district programs, said the board took the step because the delays had put financing for the center, which she said would be a strong economic driver, in jeopardy. To qualify for the TAD money, the center had to be fully funded and construction started prior to June 2012.
"We communicated that to (center chief executive officer Doug Shipman) some time ago and he in turn talked to his board," Strickland said. "We want to continue to be supportive of this important project."
The move is the latest wrinkle in the museum's challenges to get off the ground as fundraising has struggled.
Last spring center leaders announced the size of the facility would be reduced, dropping from 90,000 square feet to 63,000 square feet. The opening was delayed to 2013 and the amount of its endowment was downsized from to $15 million from $25 million.
In December center leaders decided to build the $100 million project in three phases. The first phase -- a $65 million, 30,000 square-foot-building -- is set to begin construction in June and open March 2014. The cost and timing of the next phases will depend on fundraising, Shipman said.
He said fundraising has been slow as the economic downturn has lingered and other projects -- including the King Memorial in Washington -- have competed for limited philanthropic dollars. Some of those who have already donated include Delta Air Lines, Coca-Cola, Turner Broadcasting System Inc., the Home Depot Foundation and the UPS Foundation.
"If we were talking about raising the money in three or four more years, we would be having a different conversation," Shipman said.
Overall, the city's has a $40 million stake in the attraction. The first $11.5 million was dedicated to buying a collection of papers by Rev. Martin Luther King Jr. that are to be a centerpiece of the museum.
Economist Tim Mescon said getting the additional funds will be a challenge. If the center comes out of the ground, philanthropist will also pull back on giving, thinking that the museum's financial needs are being met. With an election coming and the economic recovery tepid, investors are reluctant to give because of the nation's financial outlook is uncertain.
"Donors are skittish because of the economy," said Mescon, president of Columbus State University. "A lot of donors are waiting for the economic dust to settle."
