E-mail from Beltline CEO Terri Montague to board members

Beltline CEO Terri Montague sent a mass e-mail to members of the project's tax allocation district advisory council. It's pasted below. Emphasis has been added to highlight some of the questions that have been raised by the court's ruling.

From: "Terri Montague"

To: redacted

Subject: GA Supreme Court Ruling - Update

Date: Mon, 11 Feb 2008 11:18:07 +0000

Dear BeltLine TADAC Members:

We just learned that the Georgia Supreme Court has reversed the Fulton County Superior Court's January 2007 ruling validating the BeltLine TAD bonds. In a unanimous ruling, the Supreme Court specifically held that funding plans like the BeltLine's violate the Educational Purpose Clause of the State constitution - in effect preventing the inclusion of school district tax increment for these types of projects.

We are disappointed in this ruling, but we remain focused on the BeltLine vision. And we will continue working without interruption with our staffs and public and private partners toward its fulfillment using alternative funding sources - as we have for the last 16 months.

Our work over that time has built important momentum and revealed the broad political, civic and business will behind the BeltLine - not as merely an amenity for Atlanta but, rather, as an integrated solution to some of the City's and region's most pressing needs. Neither those needs nor that will is diminished by this legal decision.

The BeltLine Team now faces questions about precisely how the BeltLine will proceed - considering, as we will in the coming days and weeks ahead, our legal, political and financial options. Meanwhile, communities with pending TAD programs across the State will undoubtedly be evaluating how they will implement their priority projects, as well. Please feel free to contact Roland Young or Rukiya Eaddy if you have questions, or would like to arrange a fuller briefing in the meantime. We expect that this important ruling will attract extensive media coverage, starting this morning.

As stewards of the BeltLine vision and support, we will update you again soon.

Sincerely,

Terri Y. Montague

President & CEO

Atlanta BeltLine, Inc.

404-614-8322