Two proposals to settle a $200,000 loan made in 2002 to the Development

Authority of Peachtree City have fallen on deaf ears with Peachtree City

officials.

According to documents released by the city, Regions Bank declared the loan

in default Dec. 13 for non-payment. This timing coincided with the authority

losing its revenue stream from operating the city's tennis center and

amphitheater and the coinciding supplement from the city's hotel-motel

tax.

The Regions Bank loan funded the addition of a restaurant to the tennis

center and help finish the downstairs area of the center as classroom space

so it could be used by Clayton State University.

In a suit filed by Peachtree National Bank, which is now owed over $1 million

in loans issued to the authority, the bank claims the city is conspiring

to use the Regions Bank settlement offer to illegally transfer the authority's

fixed assets, estimated at $1.6 million, to the city's possession.

In April, Regions Bank proposed a deal under which would create "a

full and final settlement of its claims against Peachtree City." That

first offer was for an immediate payment of $100,000 and handing over 50

percent of the rental payments collected from tenants at the tennis center

for five years.

That offer apparently fell on deaf ears, and in May the bank offered to

settle the claim in full for a flat $112,000 cash. That letter, from Regions

attorney Philip H. Weener of Atlanta, also said, "To the extent transfer

documents are required to vest title to the subject personal property, Peachtree

City, Georgia, free and clear of any liens of Regions Bank, my office will

prepare same."

City Attorney Ted Meeker confirmed this week that the Peachtree City Council

has declined to accept any of the offers from Regions Bank.

In its suit against the city, the authority and the Tourism Association,

which currently operates the venues, Peachtree National Bank claims that

the city and association are responsible for repaying the over $1 million

in loans that the city defaulted on in December.

To keep from setting a precedent of paying the authority's expenses

while it has no other source of income, the city council has agreed to fund

a small amount of the expenses for the coming budget year, including the

presence of legal counsel.

But on suggestion from Mayor Steve Brown, the authority won't be using

local attorney Mark Oldenburg because he is a creditor who has outstanding

unpaid bills for legal services due from the authority.

The authority is set to meet Tuesday night at 6:30 p.m at City Hall in a

special called meeting to work on lining up legal counsel, particularly in

light of the authority being included as a defendant in the Peachtree National

Bank suit.