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| Tech alumnus John Aderhold: contributing to the vision to build the Georgia Dome. |
Atlanta-based Rayloc Division of Genuine Parts Co., is a framed note from Gov. Joe Frank Harris and the pen which signed the 1989 legislation enabling construction of the Georgia Dome.
"It would not have been possible without your leadership," the governor writes. "You had the vision and believed it could be done."
During six years of political intrigue and controversy, Aderhold, a 1945 electrical engineering graduate of Tech, was the tenacious champion of the Georgia Dome, which is now asserting itself as an Atlanta landmark in the backyard of the World Congress Center.
Georgia Tech is slated to play its season-opening basketball game in the Dome, which is scheduled to open in the fall of 1992. The stadium, which seats more than 72,000 people, will host the 1994 Super Bowl and serve as an arena for Atlanta's 1996 Olympic Games.
And while Aderhold, who also serves as chairman of the board of governors of the World Congress Center Authority, proved himself to be the right man for a difficult job, he says that it was not his vision, but a chance conversation that got him involved at all.
Sitting behind a desk of organized paperwork, Aderhold recalls that in 1984, the Atlanta Falcons were hinting they would not renew their lease with the Atlanta-Fulton County Stadium, and were contemplating moving to another city.
A friend stopped Aderhold on the street and said that he had met with the mayor and the chairman of the Fulton County Commission, and they were concerned about the future of both the Falcons and the Braves. "He said that concern may or may not include facilities, but if it did include facilities, the city and the county did not have the money to do anything about it," Aderhold relates. "He asked me if the state would be willing to help in some way. Well, of course, I didn't know. I guess the only reason he asked me was because of my association with the World Congress Center-being in effect a quasi-state employee," Aderhold laughs. His position with the World Congress Center Authority is unsalaried.
Within a few weeks, Aderhold found himself at a meeting that was also attended by the governor. "Afterwards, I asked him that question, 'Would the state be willing to help in some way?' I got an absolute zero response."
A few weeks later, the governor's chief aide, accompanied by two associates, came to Aderhold's office to outline the political parameters if the governor was to become involved.
"They said that Joe Frank didn't want it to be perceived that the state was taking anything away from anybody," Aderhold relates. "If we wanted to pursue the question and try to find out what the problems were and try to seek some solutions, a number of people were going to have to agree there was a problem, and go in unison to ask the governor for help."
Those whom the governor wanted involved were the chairman and vice-chairman of the Fulton County Stadium Authority, the Atlanta mayor, Fulton County Commission chairman, the president of the Chamber of Commerce, the head of Central Atlanta Progress, representatives of both the Atlanta Braves and the Atlanta Falcons, and Georgia Tech. At that time, the Falcons were contemplating using Tech's football field.
"If I could get all of those folks to agree to those things and find a date when they could all meet with the governor, then we could proceed to investigate the question.
"I didn't know all these folks, but I started calling," Aderhold recounts. A meeting was arranged for February, and Gov. Harris appointed a study committee with members representing each group. Tech's representative was John O'Neill, IM '50, principal associate athletic director. Aderhold was named chair of a stadium executive committee.
In June 1986, the study was complete. The committee had looked at 81 different possibilities. "The only thing that made any economic sense was to expand the World Congress Center in such a way that it could house the Falcons 10 days a year, and be used the rest of the time for convention purposes."
The study was released in July.
"The state had not agreed to anything, but this would obviously have to be associated with the state in some way,"
Aderhold states. "The plan was to get the private sector to work with the state, to offset some of the costs."
Both the lieutenant governor and the speaker of the house would have to support the stadium plan for it to gain legislative approval, and neither had been contacted.
In December, Aderhold contacted House Speaker Tom Murphy.
"He didn't know who I was from a hole in the ground," Aderhold says, "but he took the call. The speaker has a strong character, a really straight character. You find out in a hurry where he stands on almost anything. You've got to admire that."
The speaker was not supportive of the project, but agreed to helicopter over the site and consider whether it made economic sense. It was April 1987 before Murphy surveyed the site. If the governor supported an offshoot of the World Congress Center located in Dalton, Aderhold said, the speaker indicated he would be more favorable to an Atlanta project.
Aderhold also contacted then lieutenant governor, Zell Miller. The lieutenant governor was very supportive, but advised Aderhold to get a commitment from the House speaker first. Miller also agreed that if the governor put the Dalton project in the budget, the senate would not oppose it.
A week later, Aderhold said he learned that the governor would put the Dalton project in his budget. He called Murphy. In July 1987, Aderhold and members of his committee had a two-hour meeting with Murphy and 30 of his advisors. By 5 p.m., Murphy announced he would support the project, but stated that it must receive financial support from the Atlanta and Fulton County governments, and be run and operated by the state if it was going to be associated with the World Congress Center.
"It was the first time anybody in the state publicly said they were willing to support it," Aderhold said. Within a week, however, Aderhold officially received the support of the lieutenant governor.
Even with key legislative support, Gov. Harris told Aderhold 70 percent of the financing for the dome must come from the private sector. Aderhold agreed to try to raise the private funds.
For the initial financing, Aderhold made up a list of 10 people he would ask to invest $100,000 in the project.
"The criteria was No. 1, they had to have the money," Aderhold relates. "No. 2, they had to be public spirited, because that's what this was in the almost purist sense. Three, they had to be risk takers, because the chances were they wouldn't get anything back.
"Someone said it would help if they were a little bit dumb," Aderhold injects with a laugh.
After he had compiled a list, a friend suggested he add J.B. Fuqua. He did, and called him.
"I had never met Mr. Fuqua before. I told him who I was and that I needed some help. He said, 'Tell me about your project.' In three or four minutes, I told him what we were trying to do. He said, 'Who's on your list?' I read the list and he said, 'I don't see anybody's name I'd be embarrassed to be with.' He asked, 'The most I can lose is $100,000?' I said, 'Yes sir, that's true.' Then he asked, 'If I do this, do I have to go to the Falcon football games?' I said, 'No sir, you don't.' He said, 'In that case, I'll do it.'
"We got the rest of the group together that evening. Everybody was there. There were no Indians in that room, they were all chiefs. One of them said, 'You ought to sell more suites.' Somebody else said, You ought to sell fewer.' Somebody else said, 'You ought to charge more.' Someone said, You ought to charge less.' I said, 'Wait a minute, boys. This is not going to be a decision-making group. All you've got to decide is whether you're willing to risk $100,000. That's the only decision you've got to make. And we'll let you know if you win or lose,' " Aderhold laughs.
The meeting was held in August 1987, and by noon the next day, Aderhold had raised $1 million. But the dome stadium carried a $174.5 million price tag. Aderhold's plan was to raise the private 70 percent through the leasing of "suites and seats." But it was October before he could begin the marketing phase.
"By October, the Falcons had lost several games. The 1986 Tax Act was in full bloom, black Monday [the stock market crash] was right around the corner, and the NFL players were on strike. Those were pretty tough odds, but we had jumped off the cliff."
By year's end, the Georgia Dome had received $55 million in commitments, about half of what was needed for the leasing of suites and seats. But Aderhold said state approval was necessary to continue its marketing program. Legislature approval came in January 1988.
"In September 1988, the bottom fell out," Aderhold recalls. "The city of Atlanta and Fulton County decided they were not going to come up with any funding at that time. While the private sector could probably make the 70 percent, we could not see a way to give the irrevocable guarantees that the Falcons were going to need for their base requirements of $4 million a year. Whereas it looked like it was going to work according to plan, no one could actually step up and guarantee it. It was a black day in September. I remember it like it was yesterday."
Aderhold went to the governor. Gov. Harris had stated from the outset that no ad valorem taxes would be used to finance the dome. But the governer's advisors said with some other form of tax ~ revenue, the state could financially take over the dome project. The city of Atlanta and Fulton County governments agreed to a penny hotel-motel tax increase to be dedicated to the dome project, and in January, the state agreed to take over the project, and take the private sector out.
"Let's face it, $55 or $65 million in funding for a $1 million outlay ain't a bad deal," Aderhold exclaims.
In January 1989, the hotel-motel tax passed the General Assembly, and in June both the city and county governments were unanimous in their approval.
On Nov. 22, 1989, with Aderhold acting as master of ceremonies, ground was broken to begin construction of the Georgia Dome.
The marketing of seats and suites received a major boost on Sept. 18, 1990, when it was announced that Atlanta would be the host city for the 1996 Summer Olympic Games.
Out of 181 suites available, renting from between $20,000 and $120,000 per year for a 10-year period, more than 160 suites have been leased-well past the break-even point.
"In the state of Georgia, the largest audience you can accommodate at a public facility is 17,000 people," Aderhold observes. "This will seat 72,000-plus. It's multi-purpose. In addition to the Falcons, it can host conventions. It would be appropriate for the Southern Baptist Convention, rock concerts or a Billy Graham crusade."
The World Congress Center already has the Georgia Dome scheduled for use more than 80 days a year, Aderhold says.
The Georgia Dome will have a major impact on the Georgia economy, but, Aderhold adds, "it didn't start as a vision; it started as a question."