ATLANTA (January 29, 2009) – Sen. Jeff Chapman (R-Brunswick) has recently offered a means of accomplishing the renovation of the Jekyll Island State Park Authority without costing tax payers an estimated $100 million.
“We’re working hard to reduce spending and find solutions to enhancing state revenues with the current budget situation, but these solutions should not include unnecessarily taxing Georgians,” said Sen. Chapman.
The Georgia State Financing and Investment Commission’s list of projected total debt includes $50 million in general obligation bonds authorized for the Jekyll Island State Park Authority (JIA) for the renovation of a convention center and park improvements. Repayment of these bonds will cost taxpayers an estimated $100 million, roughly $4.5 million per year.
The JIA has contracted with its private partner, Linger Longer Communities, to build an oceanfront time-share complex, which, according to the JIA’s own figures, is expected to produce gross sales of $163 million and will yield a profit of roughly $117 million (more than 300 percent) for Linger Longer. The financial arrangement accepted by the JIA has Linger Longer receiving 99 percent of the profits and the Authority receiving just 1 percent of the project’s gross sales, or $1.63 million.
“If a profit-sharing arrangement can be reached that reflects the value of the state property and is in the best interests of the citizen owners of the park, the $50 million in state bond indebtedness could be avoided and necessary park improvements could still take place,” said Chapman.
Sen. Jeff Chapman represents the 3rd Senate District which includes Brantley, Camden, Charlton, Glynn and McIntosh counties. He may be reached by phone at 404.656.0045 or by e-mail at jeff.chapman@senate.ga.gov
Press Release
For Immediate Release:
January 29, 2009
For Information Contact:
Raegan Weber, Director
Ravae Graham, Communications Specialist
ravae.graham@senate.ga.gov
404.656.0028