City of Atlanta didn't want to compete financially with Cobb County to keep the Atlanta Braves

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ATLANTA — When Atlanta Mayor Kasim Reed found out a neighboring community had made a generous offer to help finance a new Braves stadium, he balked and said the city simply couldn’t compete.

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Employees walk into the entrance of Turner Field, the home of the Atlanta Braves baseball team, Tuesday, Nov. 12, 2013, in Atlanta. The Braves unexpectedly announced Monday they are moving in 2017 to a new stadium about 10 miles from downtown in suburban Cobb County. Atlanta Mayor Kasim Reed said Tuesday that the city will demolish the stadium after the team leaves. "We're going to have a master developer that is going to demolish the Ted and we're going to have one of the largest developments for middle-class people that the city has ever had," he said, referring to the stadium's nickname.  (AP Photo/David Goldman)  David Goldman
David Goldman
Employees walk into the entrance of Turner Field, the home of the Atlanta Braves baseball team, Tuesday, Nov. 12, 2013, in Atlanta. The Braves unexpectedly announced Monday they are moving in 2017 to a new stadium about 10 miles from downtown in suburban Cobb County. Atlanta Mayor Kasim Reed said Tuesday that the city will demolish the stadium after the team leaves. "We're going to have a master developer that is going to demolish the Ted and we're going to have one of the largest developments for middle-class people that the city has ever had," he said, referring to the stadium's nickname. (AP Photo/David Goldman)

Reed’s decision comes a few months after the mayor faced tough criticism for pushing through a plan to use public money to support a new NFL stadium downtown. And it underscores the challenges facing cash-strapped communities nationwide as they weigh the risks and rewards of using public money to help finance major sports venues.

“The bottom line is that the city was presented with a choice, and that choice was encumbering between $150 million to $250 million in debt and not having money to do anything else,” Reed said, referring to the city’s share of costs for desired improvements at Turner Field.

Instead, the mayor announced Tuesday that Turner Field would be demolished when the Braves leave in 2017, making way for a new large-scale development. Reed has said the city couldn’t match Cobb County’s offer of $450 million in public support to the Braves, though the team disputes that figure.

When faced with the question of how much to contribute to stadium construction or refurbishment, local leaders have to weigh the state of their community’s finances. In Atlanta’s case, Reed said the city has a $900 million backlog in infrastructure projects.

In defending his decision, Reed argued the Braves situation was much different than the city’s plan to contribute at least $200 million in public funding to support a new $1.2 billion, retractable-roof stadium for the Atlanta Falcons. Reed said the Falcons deal will use the city’s hotel/motel tax for improvements to state-owned property where the NFL stadium will be built.

There was no such funding mechanism for the Braves, so any contributions would have forced the city to take on significant debt, Reed said.

“It doesn’t mean I don’t want the Atlanta Braves in Atlanta,” Reed said. “We’re not going to put the city on its back financially.”

Reed touted the public’s relatively small share of costs for the NFL stadium. Long said that was lower than the average of about 70 percent in public money for stadium projects.

William Perry, executive director of the government watchdog group Common Cause Georgia, was a vocal critic of the mayor for not seeking more public input on the Falcons stadium deal. He said this week that the mayor appeared to be applying inconsistent logic by fighting for the Falcons but letting the Braves leave.

Braves executives said the decision to leave Turner Field was based on several factors, including $150 million needed to replace seats and pay for other upgrades as well as another $200 million to improve the fan experience. The team cited a lack of mass transit options in the area, too few parking spaces and limited freeway access.

“Our new location will give us the opportunity to develop the surrounding area of the new ballpark, transforming it into a mixed use, 365-day destination and creating an enhanced atmosphere for our fans during Braves games,” the team said in a statement.

Studies have shown stadium projects create only modest increases in overall tax revenue and job creation, Long said, although more teams are taking a role in developing lodging, entertainment and retail around the venues.

“In part, this is evidence of a trend where teams are more interested in development around the stadium as part of their evolving business model,” Long said, adding that it can also help with gaining approval. “However, these urban development benefits ... are slow to materialize.”

For Cobb County, the benefits of the project are clearly worth any risk.

“This makes Cobb’s marketability so much stronger, and it helps us become more than a suburban community,” said Brooks Mathis, an executive with the Cobb Chamber of Commerce who helped negotiate the deal. “We are going to see huge benefits for many, many years to come especially having such a wonderful organization like the Braves be a part of our community.”

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Follow Christina Almeida Cassidy on Twitter: http://twitter.com/AP_Christina.

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Riverman1
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Riverman1 11/13/13 - 06:12 am
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1
Cobb County-North Augusta

Cobb County-North Augusta
Macrocosm meet microcosm.

Whatever Augusta does, don't tear down Greenjacket Stadium. Leave it for ASU and Paine. That will be a fantastic college facility, draw great crowds to college games and bring in some big college teams for games. Matter of fact, give it to the state so they can maintain it.

seenitB4
98560
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seenitB4 11/13/13 - 07:54 am
2
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Truth in a nutshell

Atlanta just couldn't afford it....good decision by Reed.

rmwhitley
5547
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rmwhitley 11/13/13 - 03:14 pm
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reed's logic
Unpublished

is skewed. (he's a strong proponent of obamacare.) The Falcons are primarily a black team and the Braves-----white. Atlanta is primarily black and Cobb county is primarily ( at the moment ) white.

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