Hapeville Ford plant may become parking site

The 4,000-space facility near Loop Road would serve the new international terminal at Hartsfield-Jackson International Airport and is projected to generate more than $12 million a year in revenue, Hallman said.

The complex deal involves the city of Hapeville, the Hapeville Development Authority and a limited liability corporation set up by Jacoby and Ameripark. The impetus for the deal started about two months ago when the city of Atlanta approached Jacoby about possibly purchasing 60 acres of the site to use as parking and a runway protection area.

Jacoby purchased the 122-acre site at I-75 and Central Avenue from Ford Motor Co. in 2008 and has plans for a $1.5 billion development featuring office space, retail and other mixed uses.

The $32 million in bonds would come in two issues. A $16 million taxable bond would be issued for the acquisition of the 30 acres from Jacoby, while the second $16 million bond issue would be nontaxable and used for construction under the Recovery Zone Facility Bonds, part of President Barack Obama’s stimulus package.

The city hopes to close on the transaction this month because Congress has given no indication it will renew the Recovery Zone Facility Bonds, which expire at the end of the year.

As part of the deal, the Hapeville Development Authority would purchase the property and act as landlord, while Jacoby’s LLC would be responsible for debt service on the 20- or 30-year bonds. The city had to guarantee and credit-enhance the bonds through the development authority, Hallman said, because the days of banks issuing letters of credit are long gone.

The city would receive 3 percent of gross revenue from the yearly parking charges, which Hallman estimated could be up to $450,000 a year. Additionally, the city would get a 1 percent annual fee tied to the remaining total on the bonds. For the first year, the city would receive $320,000 since the bonds would be valued at $32 million and decrease each year.

Hallman said the 1 percent charge is capped at $1 million, and if the bonds are paid off early, the city would receive the remaining charges up to $1 million.

The city required several safety mechanisms, including one year of principal and interest payments, to ensure Hapeville is not left on the hook. But Hallman said there are far worse things than taking over the operation of a $12 million a year facility.

“It’s not that much of a risk when the worst case scenario could prove to be the best thing that can happen. It truly is like jumping out of an airplane with five parachutes,” Hallman said.