Construction and land costs for a new Hawks arena in
downtown Atlanta appear to be "at least" $10M higher than
previous estimates, "partly" prolonging negotiations between the
city and TBS, according to Saporta & Unger of the ATLANTA
CONSTITUTION. Negotiators must decide whether TBS, the city, or
both will cover the increased costs, or whether the $215M project
will be scaled back. City officials are trying to put the
project on a "fast track" in order to issue tax-exempt bonds
before the end of the year. Steven Labovitz, Chief of Staff for
Mayor Bill Campbell, said they wish to take advantage of a
"window of opportunity" that would be closed by proposed federal
legislation ending the tax-exempt status of arena bonds.
Atlanta-Fulton County Recreation Authority Chair Davetta Johnson
Mitchell submitted a resolution to designate the securities firm
A.G. Edwards & Sons as senior managing underwriter for both the
taxable and tax-free bond issues and designate the law firm
Hunton & Williams as bond counsel. Hunton & Williams partner
Kevin Ross is also legal counsel to the authority, which, Saporta
& Unger note, "could be a conflict of interest' if the firm
serves as both bond counsel and attorney to the authority
(ATLANTA CONSTITUTION, 10/11).