The Peachtree City City Council has thrown a financial lifeline to its development

authority, but it comes with a string attached.

The authority, without a source of revenue since it is no longer receiving

hotel-motel tax funds, has asked the council to pay for several key economic

development projects and an estimated $2,000 in legal fees for the remaining

four months of the fiscal year.

The legal fees were a sticking point, as Mayor Steve Brown pointed out at

last week's city council meeting that current development authority attorney

Mark Oldenburg is a significant creditor of the authority.

Mayor Steve Brown said since Oldenburg is a creditor to the authority, his

legal advice might be called into question.

Councilwoman Judi-ann Rutherford said she wants the authority to seek bids

for a separate attorney.

"If the lowest bidder ends up being the creditor, I have a real problem," Brown

replied.

To avoid getting on the hook for the rest of the authority's creditors,

the city will be paying for the authority's economic development requests

after the authority submits invoices to the city for each expense.

Included in the total $4,250 approved by the council is $1,000 for state-mandated

training for development authority members and $400 for a luncheon to entertain

state industry, trade and tourism officials.

Councilman Steve Rapson, whose wife Kristi has sued the authority alleging

unequal pay, abstained from the motion to approve the funds. While a federal

judge has dismissed the suit, Mrs. Rapson may be able to appeal that ruling.

In previous years, the Development Authority of Peachtree City received hotel-motel

tax funds which covered its economic development expenses of the authority

in addition to operations of the city's tennis center and amphitheater.

Both those facilities are now operated by the city's new tourism association,

which is also distributing the city's hotel-motel tax.

The lack of funding has also left the authority without the means to pay off

accrued debt for capital improvements and other expenses for the tennis center

and amphitheater.

Peachtree National Bank recently issued a letter to the development authority

and the city asking for payment in full of a loan to the authority that has

been unpaid for several months. The debt on that note is tabbed at $995,000.

Without a source of revenue, the authority has no way to even make payments

on that loan, officials said.