Exhibit a 1 Intergovernmental Omnibus Tad Agreement
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EXHIBIT A INTERGOVERNMENTAL OMNIBUS TAD AGREEMENT BETWEEN THE CITY OF ATLANTA AND THE ATLANTA INDEPENDENT SCHOOL SYSTEM THIS INTERGOVERNMENTAL OMNIBUS TAD AGREEMENT (the “Agreement”) is made and entered into as of the ___ day of January, 2019, by and between the City of Atlanta (the “City”) and the Atlanta Independent School System (“Atlanta Public Schools”). WHEREAS, the City of Atlanta (the “City”) is a municipal corporation of the State of Georgia (the “State”) and a “political subdivision” as defined in Chapter 44 of Title 36 of the Official Code of Georgia Annotated, as amended ( the “Redevelopment Powers Law”); and WHEREAS, Atlanta Public Schools is an independent school system created by an act of the General Assembly of the State of Georgia and is governed by the Atlanta Board of Education (the “School Board”); and WHEREAS, the City is authorized pursuant to the 1983 Constitution of the State of Georgia (the “State Constitution”) and the various laws of the State, including specifically the Redevelopment Powers Law, to incur and pay “Redevelopment Costs,” as defined in the Redevelopment Powers Law and to finance such costs through the issuance of its tax allocation bonds, notes and other obligations; and WHEREAS, pursuant to the Redevelopment Powers Law, the City previously established (i) The Westside Tax Allocation Bond District Number 1, As Amended - Atlanta/Westside (the “Westside TAD”), by Resolution No. 98-R-0777, adopted by the Atlanta City Council on July 6, 1998 and approved by the Mayor of the City on July 13, 1998, as amended, (ii) Tax Allocation District Number Two – Atlantic Steel (the “Atlantic Station TAD”), by Resolution No. 99-R-1344, adopted by the Atlanta City Council on October 4, 1999 and approved by the Mayor of the City on October 5, 1999, as amended, (iii) Tax Allocation District Number Three - Perry Bolton (the “Perry Bolton TAD”), by Resolution No. 02-R-2094, adopted by the Atlanta City Council on December 2, 2002 and approved by the Mayor of the City on December 10, 2002, as amended, (iv) Tax Allocation District Number Five - Eastside (the “Eastside TAD”), by Ordinance No. 03-O-1840, adopted by the Atlanta City Council on December 1, 2003 and approved by the Mayor of the City on December 9, 2003, as amended, and (v) Tax Allocation District Number Six – Beltline (the “Beltline TAD”), by Ordinance No. 05-O-1733, adopted by the Atlanta City Council on November 7, 2005 and approved by the Mayor of the City on November 9, 2005, as amended; and WHEREAS, the City also previously approved and established (i) “Tax Allocation District Number Seven – Campbellton Road” (the “Campbellton Road TAD”) and its associated redevelopment plan, by Ordinance No. 06-O-2292, adopted by the Atlanta City Council on November 20, 2006 and approved by the Mayor on November 28, 2006, (ii) the “Tax Allocation District Number-Eight – Hollowell/M.L. King” (the “Hollowell/M.L. King TAD”) and its associated redevelopment plan, by Ordinance No. 06-O-2287 adopted on Execution Copy - Final 1 EXHIBIT A December 4, 2006 which was approved by operation of law on December 13, 2006, (iii) “Tax Allocation District Number Nine – Metropolitan Parkway” (the “Metropolitan Parkway TAD”) and its associated redevelopment plan, by Ordinance No. 06-O-2290, adopted by the Atlanta City Council on November 20, 2006 and approved by the Mayor on November 28, 2006 and (iv) “Tax Allocation District Number Ten – Stadium Neighborhood” (the “Stadium TAD”) and its associated redevelopment plan, by Ordinance No. 06-O-2291, approved by the Atlanta City Council on November 20, 2006 and approved by the Mayor on November 28, 2006; and WHEREAS, the Redevelopment Powers Law authorizes municipalities, counties and independent school districts to consent to the allocation of positive tax increment derived from ad valorem property taxes generated on specified property within a tax allocation district to be used for Redevelopment Costs; and WHEREAS, Atlanta Public Schools, acting by and through the School Board, by resolution adopted on November 8, 1998, as amended on September 12, 2005 (the “Prior Westside Consent Resolutions”), previously consented to the inclusion of educational ad valorem property taxes in the computation of tax allocation increment for the Westside TAD; and WHEREAS, the City has previously authorized the issuance of tax allocation bonds for various projects in the Westside TAD, including the City’s (i) Tax Allocation Variable Rate Bonds (Westside Project), Series 2001, (ii) Tax Allocation Variable Rate Bonds (Westside Project), Series 2005A, (iii) Tax Allocation Variable Rate Bonds (Westside Project), Series 2005B, and (iv) Tax Allocation Variable Rate Bonds (Westside Project), Series 2008 (collectively, the “Prior Westside TAD Bonds”); and WHEREAS, the City by Ordinance 18-O-1476 adopted by the Atlanta City Council on November 5, 2018, as approved by the Mayor on November 13, 2018 determined to segregate the portion of positive tax increment derived from educational ad valorem property taxes within the approximately 40 acre area of the Westside TAD described as the gulch area (the “Gulch Area”) as security for the payment of additional tax allocation bonds and Redevelopment Costs in connection with the acquisition, development, construction, equipping and installation of a redevelopment project consisting of up to approximately 12,000,000 square feet of office, retail, residential and hotel space to be located in the Gulch Area of the Westside TAD (the “Gulch Project”); and WHEREAS, the City and Atlanta Public Schools desire to enter into this Agreement pursuant to Article IX, Section III, Paragraph I of the State Constitution, the Redevelopment Powers Law and other applicable provisions of Georgia law, for the purpose of memorializing the terms and conditions under which educational ad valorem property tax increment will be contributed to pay Redevelopment Costs and debt service related to tax allocation bonds for various City tax allocation districts; and WHEREAS, pursuant to the provisions of Section 36-44-13 and Section 36-44-3(8)(G) of the Redevelopment Powers Law, the City, under certain circumstances, has agreed to reimburse Atlanta Public Schools for educational capital costs incurred within a tax allocation Execution Copy - Final 2 EXHIBIT A district as eligible Redevelopment Costs payable from the City’s “special fund” and to make certain payments in lieu of taxes (“PILOT Payments”) to Atlanta Public Schools, on a scheduled basis, to compensate Atlanta Public Schools for the loss of tax revenues or other funds as a result of Atlanta Public Schools’ participation in certain tax allocation districts, and to compensate Atlanta Public Schools for any additional burden resulting from development generated in such tax allocation districts, all as more fully set forth herein; and NOW THEREFORE, the City and Atlanta Public Schools, in consideration of the above and foregoing promises and the mutual covenants, consents and agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged and confessed by each of the parties hereto, do hereby agree as follows: Section 1. Agreements and Covenants of the Atlanta Public Schools. (a) Atlanta Public Schools agrees as follows: i. Atlanta Public Schools agrees that the Prior Westside Consent Resolutions are in full force and effect and ratifies and agrees to its continued consent to the inclusion of its educational ad valorem property tax increment derived from the Westside TAD for the payment of redevelopment costs in the Westside TAD through December 31, 2038 and as security for the payment of each series of the Prior Westside TAD Bonds, as such bonds may be refunded, restructured and/or restated; provided that the maturity of such bonds shall not be extended beyond December 31, 2037. ii. Atlanta Public Schools agrees to the inclusion of its educational ad valorem property tax increment generated solely within the Gulch Area of the Westside TAD for the payment of Redevelopment Costs in the Gulch Area and the use and pledge of such increment as security for the payment of tax allocation bonds issued for the Gulch Project, but only through December 31, 2038 (which date and restriction on APS’ consent to participate shall be noted in the final bond validation order for the Gulch Project bonds) and as such bonds may be refunded, restructured and/or restated, provided that such bonds shall mature no later than December 31, 2038 and, notwithstanding any longer period that may be permitted by O.C.G.A. § 36-44-11, no educational ad valorem property tax increment generated within the Gulch Area shall be available to pay any bonds or Redevelopment Costs incurred for the Gulch Project after December 31, 2038 without additional written consent of the School Board. iii. Commencing as soon as procedurally possible after Atlanta Public Schools actually receives the first payment of the educational ad valorem tax increment set out in Section 2(b) hereinbelow or on January 5, 2020 (whichever occurs last), Atlanta Public Schools agrees to the inclusion of its educational ad valorem property tax increment derived from each of the Campbellton Road Tax Allocation District, the Hollowell/M.L. King Tax Allocation District, the Metropolitan Parkway Tax Allocation District and the Stadium Neighborhoods Tax Allocation District (collectively, the “Corridor TADs”) for the payment of Redevelopment Costs and as security for the payment of tax allocation bonds issued for each respective Corridor TAD, provided that Execution Copy - Final 3 EXHIBIT A Atlanta Public Schools’ participation in each of the Corridor TADs shall expire on the earlier of (i) December 31, 2050 or (ii) the earlier termination of the related Corridor TAD and shall be subject to the limitations set out subparagraph (iv) below. iv. The total contribution of Atlanta Public Schools’ educational ad valorem property tax increment to the Corridor TADs as a whole shall be limited to the following annual amounts: 1.