MLK Papers Loan Paid Off

The Atlanta City Council on Monday approved using $11.5 million of bond proceeds from a tax allocation district to repay the outstanding balance of a $35 million loan taken out to purchase the personal papers of the late Dr. Martin Luther King Jr.

The papers, a centerpiece of the new Center for Civil and Human Rights planned for downtown Atlanta, were to be purchased with donations. But donations fell short of what was needed because of the recession, city officials said.

The city sold $85 million of variable-rate tax allocation bonds for what is known as the Westside Project last December. Of the proceeds, $40 million was earmarked to support construction of the new civil rights museum, which is expected to cost $125 million.

The City Council agreed to designate tax allocation bond funds toward the purchase of the King papers after receiving an opinion from the certified public accounting firm of Windham Brannon PC that it would constitute a capital expenditure for federal income tax purposes, according to city documents.

The planned 100,000-square-foot center will feature exhibition, meeting, performance, dining, and retail space. It will be located on a 2.5-acre parcel near the Georgia Aquarium. Groundbreaking is expected to take place next year with opening in 2012.

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