Mayor Kasim Reed joined Atlanta Board of Education Chair Courtney English, Atlanta BeltLine, Inc. President and CEO Paul Morris, and Atlanta City Council President Ceasar Mitchell and members of the Atlanta City Council today to announce an agreement that will benefit both the Atlanta Public School system and the Atlanta BeltLine, Inc. Today’s agreement protects the long-term viability of a quality APS education and the Atlanta Beltline, both of which are invaluable to Atlanta’s prosperity and quality of life.  

The original agreement to create and fund the Atlanta BeltLine was designed prior to the Great Recession. In that agreement, in exchange for APS contributing a portion of its tax revenues to the project, the City of Atlanta, Atlanta BeltLine, Inc. and Invest Atlanta pay the school system “Payments in Lieu of Taxes,” known as PILOTs.

The PILOTs established in the agreement are unsustainable in today’s economy, and would halt the progress of a heavily-used City amenity that is revitalizing Atlanta’s neighborhoods. At the same time, the PILOTs are critical to the strength of the City’s public school system. The new agreement restructures the PILOTs and ensures the future development of the Atlanta BeltLine in a way that reflects current economic realities as well as APS’ need for guaranteed revenue.  

“Today, we have reached an agreement that will not only benefit our students but ensure the continued development of one of our city’s most transformative projects – the Atlanta BeltLine,” said Mayor Reed. “I would like to thank our partners Chairman English and the Atlanta Board of Education for negotiating this agreement in good faith and working with the city in a cooperative fashion to reach a fair and equitable solution. We all share a passion and commitment to our young people and the future prosperity of our city.”

Since 2009, the Atlanta BeltLine has leveraged $400 million in public investment into $2.4 billion in private investment. The Eastside Trail, completed in 2012, sees more than one million visitors each year, and has contributed to the economic and cultural resurgence of its surrounding neighborhoods. The $43 million Southwest Trail is currently under construction, and represents the single-largest expansion of the BeltLine in its history. Once complete, the BeltLine will connect 45 neighborhoods and 22 schools and learning institutions across the city.

The BeltLine Tax Allocation District includes properties along the BeltLine’s 22-mile trail. The BeltLine has significantly enhanced the City’s property tax base, thus generating greater property tax revenue. Ultimately, this increased tax revenue will result in more than 50 cents of each property tax dollar going to APS - money that APS that can use to support increased educational funding.

“I want to thank Mayor Reed for his efforts in reaching a compromise, which I believe is in the best interest of Atlanta Public Schools, our City, and the BeltLine,” said Courtney English. “This new agreement provides financial certainty for APS that will be used to further our turnaround efforts and protects the future success of the BeltLine. Moreover, I am hopeful that resolving this issue will signal a new era of collaboration with the City."

The major terms under the new agreement are as follows:

•    The proposed settlement represents a 42 percent savings over the life of the IGA, as amended, from approximately $174,936,302.00 to $100,767,577.00

•    APS will receive $73,500,000.00 in PILOTs between 2017 and 2031. This amount represents a 55 percent reduction in PILOTs.

•    APS will receive $14,767,577.00 in past due PILOTs, of which $9.1 million was paid on December 29, 2015.

•    APS will also receive a parcel of land and an additional $10 million on July 1, 2017.  

“We are thankful to Mayor Reed, Chairman English, and everyone at the City and the School system for their tireless hard work in putting this agreement together,” said Paul Morris, CEO of Atlanta BeltLine, Inc. “Today’s resolution signifies that we can move forward and continue to build the Atlanta BeltLine so that it benefits every citizen of Atlanta, from students to seniors alike.”

The Southwest Trail is funded through strong public-private partnerships, including an $18 million TIGER V grant from the U.S. Department of Transportation and a $5 million lead gift from the James M. Cox Foundation and PATH Foundation. Today’s agreement between the City of Atlanta, Atlanta Board of Education and the Atlanta BeltLine, Inc. will enable the BeltLine to enter into new public-private partnerships to continue to build the 22-mile system of trails, parks and transit.