BRADENTON, Fla. - The effort to seek court validation of $278.3 million in revenue bonds for the Atlanta Falcons' new stadium may be contested by neighbors of the site, according to the city-based Saporta Report.
A hearing will be held Feb. 17 in Fulton County Superior Court on the validation of $200 million in bonds toward the stadium's construction cost and $78 million for capitalized interest, establishment of a reserve, and issuance costs, the validation petition said.
The Saporta report said several leaders in communities adjacent to the stadium contend that negotiations with the Falcons have not fulfilled the promise that the "world-class sports arena would serve as the catalyst to improve blighted neighborhoods."
If the validation is approved, the 30-year bonds will be secured by a locally collected hotel-motel tax, and sold by Invest Atlanta, the city's redevelopment agency.
"We hope to move forward with the hotel-motel tax revenue bonds, [the] stadium bonds, by the end of the fiscal year, June 2014, which is in line with the city's agreement," said Atlanta Chief Financial Officer Jim Beard.
The stadium project is expected to cost "in excess of" $1.2 billion, and includes demolition of the Georgia Dome where the Falcons currently play, the validation petition said.
In addition to bond financing, the remaining cost will be paid through the National Football League's G-4 loan program, team debt, equity, and personal seat licenses.
The new stadium will have eight sides and an octagonal-shaped, retractable-roof to give it an iconic presence in downtown Atlanta, which is what the Falcons requested. It is being built just south of the Dome to be nearer public transportation.
