Friday, January 30, 2004
|
Friday, January 30, 2004 |
|
Brown dismisses DAPC’s legal threat By J. FRANK LYNCH 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 by several creditors,” wrote Brooks. “They are preparing to 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.
|
||