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middlegatv

Oh brother. Falcons involved in lawsuit over $26 million in "property taxes"

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I hope this lawyer loses and has to pay every dime of court cost and attorney fees out of his pocket.

The state kicked in $200 million on a $1.6 billion dollar stadium that they own and use to attract the Chick-Fil-A Kickoff Classic, Super Bowl, SEC Championship, College Football Playoff and Championship Game, FIFA World Cup, Final Fours, and a host of other events.

From an ESPN article

Blank would cover most operations, but he'd also reap revenue from seat licenses, premium seats and concessions and could negotiate for corporate naming rights. And he'd be a player in making "citywide bids," like those for Super Bowls and college football's new championship game.

The Congress Center would retain control over so-called legacy events that Dome already under existing contracts or through regular agreements. That includes the SEC Championship football game, Chick-fil-A's college football regular season and postseason games, NCAA basketball tournament rounds and Georgia high school football championships, among others.

It is not clear how much that changes the existing revenue flow at the Dome.

Frank Poe, executive director of the World Congress Center, said he was not aware of the financing agreement between Reed and Blank until "the last 24 hours." He said his agency would now re-engage to hammer out a binding contract with Blank.

World Congress Center officials have said over the course of negotiations that they didn't necessarily need a new venue, but that Blank pushed the issue because he wanted an open-air stadium. They said the fear was not that Blank would leave Atlanta but that he'd build his own stadium, taking the state's anchor client and becoming a competitor for other events.

They also said the public investment is less than what would have to be spent on Georgia Dome upgrades in the next few decades. So, they reason, the public is basically financing the cost of the retractable roof to keep all sides happy.

So let's say Blank built the new stadium in Doraville, and then competes with the city for all of those events. They've got the Georgia Dome, that they still need to sink 100's or millions of dollars into over the next decade. Or they can come to an arrangement with Blank where they have a 1.6 billion dollar structure that they invest about 12.5 percent of the cost. Then they give him avenues to recap his investment.

Let me tell you, if these other events were choosing between playing in a revamped Dome or MBS I think Blank wins that bid 10 out of 10 times,

If you want to call this a long term lease, fine. I don't know about you but when I'm leasing something the owner can't have other events or use the building unless I'm getting something out of it as well. If the Lessor wants to use the building for another event it's coming off my payment or we're working something else out. It seems as though the Falcons and Fulton county worked something else out.

Why is a Fayetteville lawyer from Fayette county filing suit against Fulton county regarding their tax assessments. Who is his client ? One would think someone that actually resides in Fulton county would have to bring this lawsuit.

 

Flyin' In DC likes this

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State of GA owns Ga World Congress Center, GWCC owns MB Staduim, Falcons are their Prime and Majority Tennant. 

State of Ga (tax payer) becomes the wounded party, as does City of Atlanta, and Fulton Co (tax payers)...thus any citizen from any part of GA can bring the lawsuit..,now with that said, suing and winning against a government entity is difficult and expensive. His basis assumes to be fraud and he’ll have to prove it and that it was intentional, or an act of negligence on the part of the accessor..,this will be hard to do and win, but you never know.

with all this said, this sounds like a deal that is straight out of Chicago, between the mob and city hall with godfather  Rham, or Christie in New Jersey...

The MOB arrives in Atlanta.  

Rise up Dirty Birds! 

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since when does a tenant pay property taxes of any kind? good grief, I have family that has been in real estate 50+ years, and had a commercial lease with Georgia Power on one of his buildings for probably 40 years. GA Power dang sure didn't pay the property taxes on it...

with all due respect to any lawyers on the board, (due being the key word here)all lawyers can all go jump off a cliff somewhere

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16 hours ago, nomak said:

Tell that to the players...not me. 

Why would I when you are the one whining about it in a thread that has no relation to the protest?

 

 

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As a taxpayer in the City of Atlanta I hope the guy wins.  Everyone throws around the $200 million figure but with debt service and ongoing operations costs (the Falcons have a claim on a share of the hotel tax after the bonds are paid off) plus other improvements paid for by the state (e.g., parking lot improvements) it is closer to $700 million.  Starting to talk about real money.

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3 minutes ago, ordr said:

As a taxpayer in the City of Atlanta I hope the guy wins.  Everyone throws around the $200 million figure but with debt service and ongoing operations costs (the Falcons have a claim on a share of the hotel tax after the bonds are paid off) plus other improvements paid for by the state (e.g., parking lot improvements) it is closer to $700 million.  Starting to talk about real money.

That number is over 26 years and includes that tax break they are suing for.

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25 minutes ago, Tandy said:

That number is over 26 years and includes that tax break they are suing for.

Actually it is a present value calculation so it takes account of the future payments and discounts them back to the present.  From an article in the Guardian: " Blank eventually acknowledged the present value of all this future money would be “close to $700 million.”  Article also claims the 700 million in public costs is more than for any other NFL building. Complete article here: https://www.theguardian.com/sport/2017/sep/29/why-are-georgia-taxpayers-paying-700m-for-a-new-nfl-stadium

Fact is, Arthur is an astute businessman and our elected officials, not so much.

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8 minutes ago, ordr said:

Actually it is a present value calculation so it takes account of the future payments and discounts them back to the present.  From an article in the Guardian: " Blank eventually acknowledged the present value of all this future money would be “close to $700 million.”  Article also claims the 700 million in public costs is more than for any other NFL building. Complete article here: https://www.theguardian.com/sport/2017/sep/29/why-are-georgia-taxpayers-paying-700m-for-a-new-nfl-stadium

Fact is, Arthur is an astute businessman and our elected officials, not so much.

  • Once the first $200 million in public stadium bonds were paid off, anything left over of the Falcons’ share of the city’s 7% hotel-motel tax — 39.3% of the tax proceeds, according to the latest MOU released Friday — “will be applied for the maintenance, operation and improvement” of the new stadium. The MOU doesn’t put a total cap on this annual subsidy, but from the chart of past hotel-motel tax collections (see page 5, and thanks to FoS reader cityzen for the link), we can see that the Falcons’ share of the hotel-motel taxes is currently about $17 million a year
  • Under the MOU, the hotel-motel tax funding for the Falcons would be extended through the year 2050. Thirty-seven years’ worth of $17 million payments equals $629 million.

 

That's over the time of the lease - which is 37 years, sorry - I mis-spoke the first time.   Of course - that's conjecture based on current costs of upkeep.

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20 minutes ago, Tandy said:
  • Once the first $200 million in public stadium bonds were paid off, anything left over of the Falcons’ share of the city’s 7% hotel-motel tax — 39.3% of the tax proceeds, according to the latest MOU released Friday — “will be applied for the maintenance, operation and improvement” of the new stadium. The MOU doesn’t put a total cap on this annual subsidy, but from the chart of past hotel-motel tax collections (see page 5, and thanks to FoS reader cityzen for the link), we can see that the Falcons’ share of the hotel-motel taxes is currently about $17 million a year
  • Under the MOU, the hotel-motel tax funding for the Falcons would be extended through the year 2050. Thirty-seven years’ worth of $17 million payments equals $629 million.

 

That's over the time of the lease - which is 37 years, sorry - I mis-spoke the first time.   Of course - that's conjecture based on current costs of upkeep.

Yes but the hotel tax has been increasing over time so Arthur's share of it will increase.  I have seen the article you are quoting and it is a little sloppy.  Arthur agreed the present value is around $700 million and since his only incentive would be to low ball the number I will go with that figure.

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1 hour ago, ordr said:

Yes but the hotel tax has been increasing over time so Arthur's share of it will increase.  I have seen the article you are quoting and it is a little sloppy.  Arthur agreed the present value is around $700 million and since his only incentive would be to low ball the number I will go with that figure.

Which would make sense.  Why else would he foot so much of the bill for building - most of the operation cost - and then pay a lease for 37 years to the City on top of that.   

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