The city of Atlanta will contribute $142.5 million to the renovation of the Philips Arena in a deal arranged to keep the Atlanta Hawks located at the site. Atlanta Mayor Kasim Reed emphasized that no money would come from the city's general fund for the project and no new taxes will be levied on Atlanta residents, with the majority of the funding instead backed by revenue bonds secured by an existing car rental tax. Attorneys Robert Highsmith and Woody Vaughan, who negotiated the lease and non-relocation clause, kept closely in line with the mayor's pledge.
"Once the law became effective we entered serious discussions about car rental tax-backed bonds," Mr. Highsmith said. "The mayor had an ironclad commitment that these renovations would not be financed by new taxes, nor would they be financed by the city's general fund."
"We expect the bonds to be backed by car rental taxes and issued by the city of Atlanta and Fulton County Recreation Authority," said Mr. Vaughan.
READ: Atlanta to Pay $200M for NBA Arena (subscription may be required)
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