The Georgia Supreme Court affirmed the lower court’s decision finding that Atlanta’s plan to issue $200 million in bonds to help finance the construction of a new stadium was within the bounds of the state constitution.
The $1.4 billion construction project has been delayed by a lawsuit brought by a group of Atlanta residents who challenged the city’s plan to use hotel-motel tax revenue to finance $200 million of the $1.4 billion. Although other cities often use a hotel-motel tax on their sports facilities, the plaintiff residents argued that the amended state law authorizing the use of the city’s hotel-motel tax to build a new stadium was unconstitutional because the legislature amended a “general” law applicable statewide into a “special” law applicable only to one situation.
In the Supreme Court decision, Justice Harold Melton wrote,
“It is of no consequence that [the amended law] happens to only impact the new stadium project at this time, as the other counties and municipalities . . . that could have collected a 7 percent hotel-motel tax for purpose of funding their own multi-purpose domed stadium facilities . . . had every opportunity to do so.”
Shortly after the decision, the Falcons released a statement:
“We are pleased with the Supreme Court opinion released today upholding the validation of the hotel-motel tax revenue bonds to be issued by Invest Atlanta as partial financing of the new Atlanta stadium. We appreciate the support and diligence of our partners at the city, Invest Atlanta and the Georgia World Congress Center Authority in seeing this through, and we look forward to continuing to work with them as we complete the construction of a facility that will benefit the city and state for many years to come.”
The new retractable-roof stadium will be completed in 2017.