Digging Deep
The Atlanta Journal-Constitution was the first to report that Atlanta Public Schools and the city of Atlanta had reached an impasse over potentially more than $160 million in tax revenue stemming from Beltline development, and that the fight could land in court. The AJC continues to cover developments on the dispute.
What’s on the horizon for the Atlanta Beltline? Visit www.myAJC.com/beltline for the latest news on the popular Atlanta attraction, a work in progress.
Atlanta’s top two officials are at very public odds this week, sparring in front of cameras and on radio over debt the city owes Atlanta Public Schools in connection with the Beltline.
Mayor Kasim Reed lashed out at City Council President Ceasar Mitchell on Tuesday over Mitchell’s recent proposal to set aside millions in city funds for APS, contingent upon the parties settling on a new deal to help build the Beltline.
Per a 2009 agreement, the city — which oversees the taxing district that funds the Beltline — must make annual payments to APS in exchange for using a portion of the school's property tax revenue for the green space project. It's currently behind on two payments, totaling $13.5 million. The issue has caused a growing rift between the city and APS in recent years as the school system has demanded payment.
“For whatever reason, the council president keeps out of the blue — and we all know it’s politics — putting forth proposals that go directly to the bottom line and harm the City of Atlanta,” Reed said to reporters during a press conference called to discuss dismissed Fire Chief Kelvin Cochran.
Describing Mitchell’s recent Op-Ed in local blog SaportaReport, in which the council leader outlined his proposal and opined over the lack of progress in the two-year conflict, as “a long soliloquy,” Reed told reporters: “That’s why he’s not mayor.”
Mitchell, who quickly called his own media briefing to respond, said he was stunned by the mayor’s “vitriol.”
“It’s highly unfortunate for me to hear the personal attacks that were made. I just did not understand that, particularly when I’ve made no attack or accusation against him,” Mitchell said. “It’s one thing to debate me on the issue; it’s another to insinuate that I don’t love the City of Atlanta.”
The conflict between the men continued with a heated argument on V-103 radio Wednesday, where Reed denied accusations that he’d made the issue personal.
School and city leaders have been at odds since early 2013 over the agreement that created the Beltline tax allocation district, or TAD. Though the Beltline is operated by the nonprofit Atlanta Beltline Inc., the city manages the Beltline TAD. Under the agreement, the city agreed to make $162 million in fixed payments from the Beltline TAD to the school district through 2030.
City and Beltline leaders have said the recession devastated the Beltline’s funding model and that the city can’t afford to make payments from the Beltline TAD without effectively halting the project’s development. In their view, the sooner the Beltline’s 22-mile loop of parks, trails and transit comes to life, the better it is for communities and schools.
Reed has repeatedly said APS should concentrate on more pressing financial concerns, such as its unfunded pension liability. Others counter that APS’s financial woes have no bearing on the city holding up its end of the contract.
School leaders say the district needs the Beltline money for district operations and board priorities, such as early childhood education. They argue that paying the district would not cripple the Beltline’s development plans.
Reed stepped in as lead negotiator on the issue early last year, but the parties have yet to reach a resolution.
Instead, 2014 was marked with multiple public spats between the mayor's office and APS leaders. Reed made waves last year for taking aim at former superintendent Erroll Davis and school board President Courtney English after Davis threatened to sue the city in a newspaper article.
Mitchell stepped into the fray last summer, when he called for resolution to the contract dispute.
The issue has become even more politicized in the past several months, with consultants working on both sides to sway public opinion and rally parent and corporate interests to their respective causes.
Despite the discord, both Reed and Mitchell share agreement on key issues. Both say APS must be willing to restructure the deal. And both want the school system to take into account $26 million in property tax revenue that APS didn’t have to contribute to the Beltline during a legal challenge.
Councilwoman Natalyn Archibong ultimately introduced a version of Mitchell’s legislation to the council this week. Under the proposal, up to $13.5 million that results from a sale of city property could be directed to APS, pending restructuring the deal.
The legislation is now under consideration by a council committee.
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