Wednesday, October 29, 2008
News Beltline bond details released
Posted by Thomas Wheatley @thomaswheatley on Wed, Oct 29, 2008 at 7:27 PM
If Atlanta City Council gives them the OK, bonds set to be issued this week to pay for Beltline projects will be worth $64.5 million — a much lower amount than the $117 million initially anticipated before bond markets ground to a halt because of Wall Street's meltdown.
Atlanta Beltline Inc. CEO Terri Montague says more bonds will be issued in mid-2009. The tax-exempt bonds will be split in half and sold to Wachovia and Suntrust with a 6.2 percent interest rate. She says the reason the offering is much smaller is because debts — most notably, the Wayne Mason property in the 22-mile project's northeast quadrant — must be paid. Additional bonds are planned to be issued in in mid-2009. Montague says the affordable housing component will receive roughly $8.5 million.
Beltline leaders will also have to buy out Ben Rainey and Barry Real Estate, its private partner in a joint venture that purchased the 66-acre Mason property, to meet regulations established for tax-exempt bonds. Montague says the two partners agreed to settle for $3.5 million — they originally wanted $10 million.
Beltline officials appear before Atlanta City Council at 3:30 p.m. to seek its approval before proceeding with the deal. Should City Council fail to approve the bond offering, the city would lose both the property and $26 million its already paid to the Masons.
Should voters approve Amendment 2 on the General Election ballot, Montague says, the next Beltline TAD bond offering could potentially be much larger.
More updates to come.
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