Development Authority attorney says management deals still are legally OK

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Development Authority attorney says management deals still are legally OK

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The attorney for the Development

Authority of Peachtree City has written an opinion defending the authority's

legal basis for operating the city's tennis center and amphitheater.

The opinion from Mark Oldenburg

came days after an opinion from new city attorney Theodore P. Meeker III

and bond attorney Earle R. Taylor III was made public. The Meeker-Taylor

opinion said Georgia law indicated the authority wasn't authorized to

"own, operate or manage an amphitheater or tennis center."

But Oldenburg wrote in his

opinion that the law allows the authority to run the tennis center and

amphitheater since they are economic development "projects"

the law refers to.

"If a project undertaken

commerce, industry and employment opportunities,' it is permissible,"

Oldenburg wrote. "... The broad language of these code sections again

emphasizes that as long as a project promotes the development of trade,

commerce, industry and employment opportunities, it is permissible under

this law."

Oldenburg also cited a Georgia

Supreme Court case that helps clear up the issue. The court ruled that

a development authority could use a "sports facility" as a project

as long as it was similar to "a stadium, coliseum, arena or similar

structure used for professional and competitive sporting events and other

large scale entertainment events."

The case Oldenburg referred

to, Haney v. Development Authority of Bremen, involved questions over

the authority could issue bonds to construct a public golf course. The

court ruled a public golf course did not meet the statutory requirements

to qualify as an economic development "project."

"Thus, although the amphitheater

is not a sports facility, the language in the Haney case indicates that

a facility like the amphitheater that supports 'large-scale entertainment

events' is an appropriate 'project' (under the law) as it promotes trade,

commerce, industry and employment opportunities," Oldenburg wrote.

The tennis center is also a

legitimate project for the authority since "it is a nationally recognized

venue that draws numerous players and patrons to the city from across

the state, region and nation," Oldenburg wrote. "As such, it

clearly promotes trade, commerce, industry and employment opportunities."

The approximate annual spending

at the amphitheater is tabbed at $2.3 million, but the estimated financial

impact is actually $5.7 million, Oldenburg wrote.

The various tournaments hosted

impact in excess of $3.7 million, largely due to the number of out-of-town

participants who stay in local hotels, he added.

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