A federal judge on Friday dismissed what is likely the last legal challenge to a Nov. 6 vote that could allow the creation of a city of Eagles Landing by dismantling a portion of the city of Stockbridge in Henry County.
But in doing so, U.S. District Judge Leigh Martin May emphasized something that both sides had largely neglected to speak about in public since the unprecedented legislation was passed last spring – that Eagles Landing will remain responsible for its share of a $17 million bond issue that was used to build a new Stockbridge city hall and other public buildings.
The suit was brought by Capital One Public Funding, which now holds the paper on the bond. Stockbridge says land targeted for the new city amounts to half its ad valorem tax base. From the order:
"[The state had argued that] the Deannexation Acts do not substantially impair Plaintiffs' contractual rights because the legislation already contemplates that the new City of Eagle's Landing will be a successor in interest to the Debt Agreement. This Court agrees."
In a statement issued last Friday, Chris Anulewicz, attorney for the city of Stockbridge, accused Eagles Landing proponents of hiding responsibility for the debt from voters:
In the preliminary injunction federal order, the Judge says that if a new City of Eagle's Landing is established it will be responsible for its share of Stockbridge's municipal bond debt. This would likely require Eagle's Landing to impose a property tax to pay its share of Stockbridge's debt.
It is ironic that the proponents of Eagle's Landing actually advocated this position with the court when they had previously promised referendum voters that there would be no property tax in Eagle's Landing. Those proponents have already broken their biggest promise to the voters before the City of Eagle's Landing referendum has even taken place.
While we had argued for an injunction of the referendum, the Judge opted to allow the ballot question to remain in place. We are disappointed in the preliminary injunction ruling yet Stockbridge continues to believe it should ultimately prevail on the merits of its constitutional challenge.
And the press release issued this afternoon by the Committee for the City of Eagles Landing:
Georgia Act 548 7.115(h) better known as SB 263, the Charter for the City of Eagle's Landing, had already established a provision for an existing intergovernmental agreement which affects property from the City of Stockbridge.
"It surprised me that Capital One did not realize when they purchased the loan from Wells Fargo in 2017 that legislation (SB 263) had already been introduced for the de-annexation of portions of the City of Stockbridge into the City of Eagle's Landing and that they were not aware of the language in 7.15(h) which would address their concerns, " states [Vikki] Consiglio, chairman of the group. "And furthermore, it saddens me to think that bond reporting agencies would write articles indicating bond harm for cities across Georgia when clearly the Georgia legislature had made provisions for these things."
"There are many media reports stating that the Federal Judge ordered the City of Eagle's Landing to pay the debt of the City of Stockbridge when that is not the case. Judge May denied the request for a preliminary injunction based upon the provisions found in Act. Something that has been there for over two years," states Consiglio.
Click here for your copy of the judge's order, or scroll through it here:
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