Friday, June 11, 2004

Funds OK’d for DAPC, but PTC council urges selection of new attorney By JOHN MUNFORD jmunford@TheCitizenNews.com 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.

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