"It's a smoke screen," she has said of race charges.
Stockbridge's lawsuit — its second effort to halt the Nov. 6 vote — comes just days after the holder of most of Stockbridge's municipal bonds filed a federal lawsuit to stop the referendum because of concerns over loan payments.
Capital One Public Funding — the municipal bond arm of New York-based bank giant Capital One — said the Georgia Legislature failed to create a mechanism for the new city to address the financial obligations of former Stockbridge residents. Eagle's Landing would be created in part by taking over about half of Stockbridge, which would be de-annexed — the first time a Georgia city will lose part of its territory to form another.
“The de-annexation acts fail to attach to the land and property that will be de-annexed from Stockbridge and annexed into Eagle’s Landing any of the financial obligations secured by the lost Stockbridge tax base,” the bond issuer wrote in its lawsuit, which was filed Friday.
Stockbridge, which included concerns about the bond repayments in its lawsuit, said the city could lose about $4.2 million in revenues annually because of diminished taxable property and lead to default.
“If the proposed de-annexation occurs … the city of Stockbridge will be forced to repay its outstanding bond debt with substantially less tax revenue, thereby increasing the probability the city of Stockbridge will default on its contractual obligations to its bondholders and diminishing the city of Stockbridge’s bond credit rating to the benefit of the city of Eagle’s Landing,” Stockbridge said in the suit.
“They will be saddled with that debt without the ability to pay,” Anulewicz said.