Turner Broadcasting will "accept much of the financial risk"
for a new $200M downtown arena project after an agreement reached
with the Atlanta-Fulton County Recreation Authority. According
to Saporta & Unger in the ATLANTA CONSTITUTION, the deal "is a
key step" in getting legislative approval for a car-rental tax
that would be used to help pay for the facility. The Hawks arena
space in the project would require about $135M in revenue bonds
issued by the recreation authority, and all arena revenues --
tickets, concessions, suites and advertising -- will go toward
repayment of those bonds. If there is a shortfall, Turner will
offer team revenues to pay off the debt service. With that
pledge, the likelihood of a taxpayer bailout is virtually
nonexistent." William Shaw, TBS VP/Administration: "We think
this is a first in public-private partnership." Officials said
the deal includes a commitment by the Hawks to play at a new
arena -- even if the team is sold -- "as long as their are bonds
outstanding." A separate bond issue for around $65M will go
toward public improvements around the facility, with TBS also
guaranteeing those costs above what the city will contribute from
the proposed 3% car rental tax. The new arena will have close to
21,000 seats, with 100 luxury suites, and 2,000 club seats
(ATLANTA CONSTITUTION, 1/26).
