Sometimes the mainstream media can get it wrong which is why it’s good to go straight to the source. For example, Forbes reported this last year:
“The Falcons topped off an NFL-best 13-3 season with another major victory, securing an agreement with state officials for a new $1 billion, state-of-the-art stadium. The deal will keep the Falcons in Atlanta for at least another 35 years and will be partially financed by $200 million in state-issued bonds. The other $800 million will be privately financed. The team expects to sell personal seat licenses and naming rights to the stadium. The new stadium will replace the aging Georgia Dome, which was operated by the state. Revenues in the Georgia Dome were split between the government and the team. But the new stadium will be operated by the Falcons, and they will collect all revenue from non-football events. They are hoping to bring in Super Bowls, BCS Bowl Games, political conventions and a Major League Soccer team.”
The Forbes report is partially inaccurate since the city, not the state i.e. GWCCA, will repay the debt. According to staff at the city’s economic development arm, Invest Atlanta, the city, through Invest Atlanta, will be responsible for issuing the bonds, but they have not been issued yet. The proceeds toward the stadium will be $200 million and financed through the hotel/motel tax designated specifically for the dome or a successor facility. The exact amount of the bond issuance is being determined now. It’s Invest Atlanta staff’s belief that the bonds will be issued next spring.
Alton Drew serves as a managing director of The Drew Fonza Project, a public policy research and consulting firm. He provides public policy analysis for municipal bond investors, private equity firms, hedge funds, investment banks, industry associations, and individual investors. Visit http://www.drewfonza.com to purchase reports on political environments surrounding municipal bond issues or to request a custom report. E-mail him at email@example.com..