Wall Street firm’s power, money may stall Eagle’s Landing cityhood bid (AJC)
KENNESAW, Ga. (Aug 23, 2018) — For six months, the battle over cityhood for Eagle’s Landing has been mostly about the dividing lines of black or white, Democrat or Republican, and rich or poor.
But experts say when one of the nation’s biggest municipal bondholders entered the
fray last week with a federal lawsuit to stop the Nov. 6 cityhood vote, it become
about something that could fundamentally end the dispute: money.
Capital One Public Funding is suing the state of Georgia and Henry County because it argues that creating Eagle’s Landing by de-annexing as much as half of Stockbridge does not address how millions of dollars in bonds owed by Stockbridge would be apportioned to the new city.
In other words, Capital One wants its money and fears that a weakened Stockbridge could default.
“It’s a very potent lawsuit that could actually derail the idea of de-annexations to create new cities,” said David Shock, a political science professor at Kennesaw State University. “You’re materially changing the contract behind the taxing mechanisms guaranteeing the security of the bonds.”
A leader in innovative teaching and learning, Kennesaw State University offers undergraduate, graduate and doctoral degrees to its nearly 43,000 students. With 11 colleges on two metro Atlanta campuses, Kennesaw State is a member of the University System of Georgia. The university’s vibrant campus culture, diverse population, strong global ties and entrepreneurial spirit draw students from throughout the country and the world. Kennesaw State is a Carnegie-designated doctoral research institution (R2), placing it among an elite group of only 6 percent of U.S. colleges and universities with an R1 or R2 status. For more information, visit kennesaw.edu.