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 Mayor’s Office of Communications
55 Trinity Avenue, Suite 2500 • Atlanta, Georgia 30303

FOR IMMEDIATE RELEASE: 03/18/13

News Release

City of Atlanta Approves Resolution Authorizing the Use of the City’s Hotel-Motel Tax Revenues to Partially Fund a New Professional Sports Stadium 

ATLANTA -The Atlanta City Council voted 11-4 today in favor of an amended resolution extending the hotel-motel tax to 2050 and for other key agreements among the City of Atlanta, the Georgia World Congress Center Authority (GWCCA) and the Atlanta Falcons, thereby taking a significant step toward the construction of a new retractable roof stadium in downtown.

The Atlanta City Council also approved an amendment requiring the Atlanta Falcons to allocate up to an additional $20 million from its contingency budget for infrastructure costs, if necessary. In addition, council members passed an amendment calling for the adoption of a Community Benefits Plan that studies the impact of the new stadium on the surrounding neighborhoods. They also amended the resolution to specifically state that no General Fund dollars can be used to finance the construction of the stadium.

“The construction of a new stadium will lead to the revitalization of some of the city’s most historic neighborhoods, create well-paying jobs and ensure that the City of Atlanta remains a competitive, leading city with world-class attractions,” said Atlanta Mayor Kasim Reed. “I appreciate this vote of confidence from the Atlanta City Council in moving this vital issue forward.” 

“We are grateful for the Council’s vote of support today,” said Atlanta Falcons Owner and Chairman Arthur M. Blank. “The agreements approved today represent the fruits of more than two years of collaborative discussions leading to a solution that serves the best interests of all involved, including the neighborhoods surrounding the new stadium. The actions taken today are also a critical step toward the completion of final agreement necessary to move the stadium project forward."

Blank continued: “The City of Atlanta and the State of Georgia have a history of building strong public-private partnerships in areas that contribute to economic development. This project is no exception. We appreciate the spirit of collaboration demonstrated by the Mayor’s office. Atlanta City Council, Invest Atlanta, GWCCA and numerous community leaders in advancing a project that will benefit the city, region and state for many years to come.”

On Friday, the GWCCA Board of Governors unanimously approved a completed business deal for a new multi-purpose operable roof stadium to be built on the authority’s property. The proposed stadium will serve as the home of the Atlanta Falcons as well as other sports, convention and entertainment events that are currently held at the Georgia Dome.

Earlier this month, Mayor Kasim Reed and the Atlanta Falcons reached an agreement on key city terms for the construction of a new stadium in downtown Atlanta after several weeks of negotiations and community inclusion. The deal terms include more than $30 million in direct investment for the English Avenue, Vine City and Castleberry Hill neighborhoods, and a $50 million investment in infrastructure improvements in the area adjacent to the proposed new stadium. Specifically:

• The Atlanta Falcons would assume responsibility for $50 million in infrastructure costs related to stadium construction.

• The Arthur M. Blank Family Foundation would commit to investing $15 million in private funds in the English Avenue, Vine City, Castleberry Hill and other neighborhoods contiguous to the new stadium to address overall needs as part of a cohesive plan; accelerate quality-of-life improvements; improve health, education and welfare of current residents; address equity and social justice issues associated with new residential and commercial development; and attract new investment, new jobs and new residents.

• Invest Atlanta, the city’s economic development agency, would also commit $15 million in tax allocation district dollars for economic development projects that would leverage private sector and philanthropic investment in the English Avenue, Vine City and Castleberry Hill communities, pending approval by its board.

• To promote full and equal business opportunities in connection with the design and construction of the new stadium, the Atlanta Falcons and the GWCCA have agreed to develop an Equal Business Opportunity Plan that will ensure at least 31 percent participation by women and minority business enterprises. The construction of the stadium is expected to create more than 1,400 full-time equivalent jobs in Atlanta and more than 4,500 full-time equivalent jobs across Georgia over a three-year period, according to a study completed by Georgia State University Associate Professor Dr. Bruce Seaman.

• The public contribution for stadium construction is capped at $200 million, which would come from the hotel-motel tax collected by the city of Atlanta almost exclusively (more than 85 percent) from visitors and tourists, not residents of the City of Atlanta. Invest Atlanta would be asked to issue the bonds using the hotel-motel tax that currently supports the Georgia Dome. The existing hotel-motel tax revenue stream is the sole public funding source for the stadium construction and any risk associated with repayment is carried by the bond holders, not the City of Atlanta.

• No property taxes or new taxes of any kind would be paid by or levied on City of Atlanta residents or businesses to fund construction of the new stadium. The City of Atlanta will not serve as a backstop for any debt associated with the construction of a new stadium and this agreement will not affect the city’s bond capacity or credit capacity.  

The new stadium is estimated to cost approximately $1 billion. About $800 million for the cost of construction of the new stadium will come from investments contributed by the Atlanta Falcons and other private sources. The $200 million public contribution from hotel-motel tax revenue has been specifically dedicated by the Georgia General Assembly for the Georgia Dome or a successor stadium on the Georgia World Congress Center campus and cannot be used for other purposes, such as for Atlanta Public Schools, infrastructure needs or transportation improvements.

As previously agreed, the GWCCA and Atlanta Falcons would endeavor to minimize negative effects on businesses, traffic and neighboring properties and businesses surrounding the new stadium site during construction, development and operation of the new stadium, and will further seek to identify reasonable opportunities to enhance the area surrounding the new stadium.

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For more information about the City of Atlanta, please visit http://www.atlantaga.gov or watch City Channel 26. Follow the City of Atlanta on Facebook and Twitter @City_of_Atlanta. Follow Mayor Reed on Facebook and Twitter @Kasim Reed