IS CHAMBER OF COMMERCE CEO DON BEAVER using the Chamber-housed and little-known Cobb Development Authority as a piggybank to fund Chamber projects costing over $500,000 in the last five years?

In addition to finding pet Chamber projects, the Development Authority's sketchy minutes also suggest a very cozy relationship between the low-profile seven-member authority and the Chamber. Authority minutes and check registers show that at Beaver's behest the Authority has been picking up the tab for billboard space and movie theater and magazine ads on behalf of the Chamber that cost at least $100,000.

Also, the authority helped sponsor the Chamber's annual golf tournament, paid a new industry's $5,000 chamber dues in the elite Chairman's Club and footed the bill for its chairman to attend the Chamber's annual Washington, D.C., fly-in.

The same minutes also show that the Authority has subsidized the Chamber's money-losing magazine - Cobb In Focus -for the last four years to the tune of $240,000. Cobb In Focus competes with at least a dozen magazines privately published and circulating in Cobb (including Cobb Life published by the MDJ). One of those 12 - Cobb Living - was a Chamber member before it went out of business.

The Chamber is a private, non-profit membership organization that has promoted Cobb and its six cities for well over 60 years. The Cobb Development Authority, according to Cobb County's website, was established by the Commission in 1973 to promote trade, industry and job opportunities in Cobb. Although it is a public body subject to Georgia's Sunshine or Open Meetings and Open Records laws, authority minutes indicate that few if any members of the public ever attend and all votes for the last five years have been unanimous.

All seven authority members are appointed by Cobb commissioners for four-year terms. Cobb Rep. Don Wix (D-Mableton) has been chair of the Authority for the past five years. Beaver wears two hats, serving as the Authority's executive director and as Chamber CEO.

Although the authority pays the Chamber $96,000 a year for office space and for part-time services from Beaver and several chamber staffers, the authority in January 2007 voted to give $153,000 to the Chamber to refurbish its offices on Interstate North near Interstate 75 and Windy Hill Road.

THE AUTHORITY WAS CREATED as a conduit for tax-exempt, low-interest-rate bonds for businesses seeking to locate or expand in Cobb. Once the authority approves an "inducement resolution" for a new business and that business can find a bank or lender for their project, it can get a tax-exempt loan. The authority receives an origination fee for the bonds and uses part of the fees for bankrolling its own and apparently some Chamber expenses.

In addition to its origination fees, the Authority lawyers George Dozier and Robert Silliman - also pocket some hefty fees for the bonds. However, the public has no liability for the bonds. All risk is borne by the lender, typically a bank. Because the loan is tax-exempt, the lender or bond holder does not have to pay any federal or state income tax on the bond, thus allowing the borrower to borrow at lower than taxable rates. In short, the federal and state governments are throwing the party for the borrower or business.

Although the loan and lawyer fees are paid by the expanding business, once the Authority receives the fees and inducement costs, that money becomes public money.

In 2009 the Authority took in $307,000 in fees and $201,000 in 2008. It currently has more than $1 million on hand. Inducements to lure new development have been down in recent years because of the economy and monthly board meetings have been scaled back.

Beaver and the authority claim the over $500,000 in Authority expenses for the Chamber are for economic development. However, Cobb County already has its own economic development department with a $352,000 budget that is headed by Michael Hughes. Recently the county commission, with encouragement from Beaver and Chamber insiders, is considering outsourcing and moving the Cobb Development office on the Square to the Chamber, meaning Hughes would report to Beaver instead of County Manager David Hankerson.

Despite the county's claims of austerity cuts and belt tightening, the Authority OK'd a $2,900 expenditure for Hughes to attend a bio-science conference just this month in Chicago.

In addition to funding Cobb Chamber projects, the board minutes also show that in 2007 the Cobb Authority gave $25,000 to the Metro Atlanta Chamber of Commerce for what was described as the annual Atlanta Invitational Champions Invitational Partnership Event at East Lake and $5,000 to the Gwinnett Chamber of Commerce for an expense labeled the Innovation Cresent.

In 2007 the Development Authority also paid out $8,000 for a Chamber "Arts Study" for which Cobb County also paid the same amount.

In addition to using public money to pick up the tab for Chamber projects the Authority has made at least three donations to Cobb non-profits in recent years. The largest was $50,000 for "architectural fees" for the Strand; $40,000 for the restoration of the Taylor-Brawner House in Smyrna and $15,000 for the YWCA.

THE LITTLE-KNOWN Development Authority received rare media notice last month when the developers of a proposed $72 million baseball complex suggested the authority and investors each kick in $450,000 for a study to help launch the proposed Powder Springs project.

The request raised criticism when it was reported the Development Authority had never done such a study and when it was further reported that the $72 million bonds would be issued through the Cobb Recreation Authority - not the Cobb Development Authority - and backed by the full faith and credit of Cobb. That would mean Cobb taxpayers would be on the hook for the baseball bonds.

Other Authority members are MDJ Associate Editor Bill Kinney, vice chair, (who did not contribute to this article); banker Clark Hungerford, secretary/treasurer; Robert Morgan, assistant secretary; banker Libby Pitner; and retired real estate executive Bob Pruitt. Member Jo Ann Birrell, an executive with Waste Management, stepped down last month to run for the commission seat vacated by Tim Lee. Her replacement has not been named.