Mayor Steve Brown said he will
make a proposal soon to the City Council to address an estimated $1.5
million in unsecured debt incurred by the Development Authority of Peachtree
City, which is penniless.
Meeting in executive session
last week, the council allegedly discussed options for getting the DAPC
through the crisis, even though city officials contend that they have
no legal responsibility in the matter.
Citing legalities, officials
at City Hall refuse to comment. But Brown restated his position on the
debt issue.
"Essentially, the authority
is an autonomous government body under the state constitution," Brown
emphasized earlier this week. "We are not responsible for their debt."
But Robert Brooks, one of three
remaining members of the original seven-member DAPC board, informed the
mayor and council in a letter dated Jan. 7 that by discontinuing the authority's
"monthly stipend" of hotel-motel tax dollars, it left them with
no income and no way to pay creditors.
"I have been contacted
take legal action against the authority and the city. This will force
the authority to liquidate its assets."
Publicly they wouldn't
comment on Brooks' threat, but privately city officials seemed unconcerned
that local banks would consider pursuing the matter in the courts, especially
since bank officers are believed to have knowingly signed off on lines
of credit to the DAPC for years.
Brown responded in a letter
to Brooks dated Jan. 16 and written on city letterhead that, as a city
councilman during the time the DAPC was charged with operating the amphitheater
and tennis center, Brooks shared in the responsibility for incurring the
debt.
"Personally, I would prefer
that you bow out and leave the resolution of this matter to objective
parties," Brown wrote. "Some very capable individuals have made
application for a seat on the authority."
What assets belong to the DAPC
is questionable.
Earlier this month, the DAPC
had to borrow $15,000 from the city just to conduct its annual audit.
The DAPC's assets, which Brooks said have value of more than $1.6
million, include some physical property that clearly belongs to the city
already, Brown contends.
Essentially, anything that
the DAPC bought, built or improved at the amphitheater or tennis center
using funds generated from hotel-motel tax collections already belongs
to the city, while physical assets built from DAPC-generated profits are
transferable. But the DAPC rarely, if ever, turned a profit in 10 years
of running the facilities.
"We're looking at
it from the legal perspective," said Brown. "What is our best
strategy, and what do we want to do? I think eventually we'll want
to purchase some of these items, but it needs to be clear that the authority
doesn't own them, the banks own them."
What the city is trying to
avoid, said Brown, is buying back stuff it has already paid for.
Meanwhile, recommendations
to fill the four empty seats on the DAPC board should come before the
council sometime in Feburary.�Interviews were conducted earlier this month
of 10 Peachtree Citians who applied.
City spokeswoman Betsy Tyler
said a cross-section of residents, several with business or industry ties,
filed for consideration to the DAPC, which intends to focus on its original
mission - industrial development - as soon as the debt issue
is resolved.
Brooks, Scott Formel and Bill
Boxley are�the three remaining members.







Easy button Return it to long suffering taxpayers including those who have paid huge tabs to educate other people's kids…