Beltline agrees to repay city for controversial APS payments
Beltline repayment schedule
2016: $6 million
2017: $1.5 million
2018: $1.5 million
2019: $2 million
2020: $2.3 million
2021: $2.5 million
* Although the agreement says $14.7 million will be repaid, the accompanying repayment schedule adds up to $15.8 million. The reason for the discrepancy is unclear, and administration officials were unavailable to answer questions Monday evening.
Atlanta City Council on Monday approved a repayment schedule for $14.7 million the city has given to the school system over the past four months on behalf of the tax allocation district surrounding the Beltline, a popular network of trails and parks.
Mayor Kasim Reed quietly stroked a $9 million check to Atlanta Public Schools in December as a "good faith" payment while the two sides negotiated a new agreement. The pressure was on because the city had missed two payments that were supposed to be made from the Beltline TAD and was in danger of breaching its 2009 contract with the school system if it missed a third payment due Jan. 1.
The city also made a $5.7 million payment to the schools on March 1.
The agreement approved Monday stipulates $6 million payment from the TAD will go to the city right away, and future payments of between $1.5 million and $2.5 million over the next five years.
Alex Wan, chairman of the council’s Finance Committee, said he understood the mayor’s decisive action to avoid default. But Wan said he’s glad the money will be repaid to the city’s general fund, which pays for most services and employee salaries.
“My only concern was I wanted it to be repaid,” Wan said. “So I’m glad to see this agreement. I didn’t want it to come out of the city’s pocket.”
Councilwoman Felicia Moore took issue with the $9 million payment, saying it was a violation of the city charter because the council did not approve it. Lawyers for Reed's administration said the payment was allowed through the 2009 legislation that created the tax allocation district.
“I’m glad we have stated they should reimburse us,” Moore said on Monday. “But as far as the $9 million, it violated the charter. That’s clear and simple.”
A new Beltline agreement was reached at the end of January, with the city council and school board approving it afterward. The new deal ended nearly three years of impasse. City and schools leaders have said it brings stability to the Beltline, which has struggled to grow since the Great Recession, and will result in a higher property tax base to the benefit of all parties.
About the Author
Dan Klepal is editor of the local government team, supervising nine reporters covering county and municipal governments and metro Atlanta. Klepal came to the AJC in 2012, after a long career covering city halls in Cincinnati and Louisville, Ky. He has covered Gwinnett and Cobb counties before spending three years on the investigative team.
