SunTrust Park Debt Service Payments Cheaper Than Estimated

Cobb County announced Tuesday that the cost of the debt service payments for the financing of the Atlanta Braves’ new stadium will be less expensive than originally estimated.

The original 2013 projection of $24 million in annual debt service has come in at $22.4 million, $1.6 million less than 2013 expectations, the county said. Cobb County Office of Finance and Economic Development Comptroller James Pehrson, CPA said that due to an increase in revenue and the lower debt service payments, the millage rate for the county general fund can be reduced from 0.33 to 0.234 mills, a 0.096 reduction.

“The SunTrust bond issuance is a major benchmark on the road to SunTrust Park Opening Day in April 2017. I’m very proud of how diligently Cobb County staff has worked to keep this landmark project on time and under budget,” said David Hankerson, Cobb County Manager.

In June, the Georgia Supreme Court backed a lower court’s ruling that the validation of some $397 million in bonds meant to finance the stadium was constitutional.

Three Cobb County residents had appealed Judge Robert Leonard’s July 2014 decision to validate the bonds for SunTrust Park, arguing that the county overstepped its boundaries by putting itself far in debt without first putting the matter before the voters in a referendum.

In a unanimous decision, the high court ruled in favor of the Braves and the county, declaring that the financing of the $622 million stadium was based on precedents set by the court itself. The court did note some concerns with using so much public money for a private stadium, but added that it was up to Cobb’s elected officials to wrangle with that issue.

SunTrust Park is planned to be open in time for the start of the 2017 season.