BONDS GONE BAD—But Remember, IT CAN “NEVER,EVER HAPPEN”

March 25, 2016

Bond Guarantee

Thank you to Ann Jones Guider, Douglas County Commissioner, for her research! 

 Below are some area county/city-backed bond projects that went bad and fell back on the taxpayers.

Cherokee Bond Deal

Read Article at the AJC  AJC.com

“Cherokee County commission chairman Buzz Ahrens said Thursday the company still owes the county the $1.8 million for bond payments the county has been making for the last year and a half because the company’s business faltered and it could no longer afford the $100,000-a-month note to the Bank of New York.”

 Marietta deal within a deal

Read more at… mdjonline.com

“The 200-room Marietta Conference Center and Resort on Powder Springs Street opened in 1996 with an original bond debt of about $26 million. The facility, which currently has a bond indebtedness of about $30 million, is technically owned by the Downtown Marietta Development Authority, which issued the bonds and leases it to the city. In 2004, after struggling with myriad problems – including paying $4.3 million in ’03 to buy out the contract and cover the losses of embattled former operator Sentry Hospitality – the city leased the facility to Dallas-based Remington, which has the contract through 2028. Remington subsequently brought in the Hilton hotel chain last year, and it was renamed the Hilton Atlanta/Marietta Conference Center.”

 Cherokee Recycling Deal

See more at ..   cherokeetribune.com

“Ball Ground Recycling project, where Cherokee County was left on the hook for bond payments on $18 million after its operator went bankrupt.”

 

Taxpayers on the Hook for Gwinnett, Ga. Baseball Stadium

See more at …. Reason.com

“Public subsidies for stadiums are win-lose propositions: The teams win, and the taxpayers lose.   A consultant’s study had pitched a stadium costing $25 million to $30 million. The price soon climbed to $45 million. By the time construction was complete, the cost had jumped to $64 million.  Gwinnett officials said the stadium would pay for itself,” noted the AJC in September. Yet “they later approved a 3 percent car-rental tax to help repay” the stadium debt. What’s more, even that might not be enough: An AJC investigation last year showed the tax—along with parking, rent and other stadium revenue—won’t be enough to cover the debt when principal payments begin in 2014.”

 Paulding Film studio losing money, costing taxpayers millions

Posted: Jun 11, 2014 5:49 PM EDTUpdated: Dec 17, 2014 10:34 AM EST

A CBS46 investigation found a film studio built by the Paulding County Industrial Building Authority is losing money and costing taxpayers. According to financial records, Atlanta Film Studios in Hiram has not been able to cover its costs with revenue collected by leasing out the space to filmmakers. Since opening in 2012, the facility has lost $837,827. By the end of the summer, more than $1.3 million will have been paid toward the $6.5 million bond that was issued to cover construction costs.  The Industrial Building Authority is making the payments with funds collected from taxpayers and revenue generated from other projects.  “It may have not turned out as well as we have thought.”  In 2011, Graham told Chirico he was so convinced the studio would create hundreds of jobs for county residents that he voted to back the bonds with taxpayer dollars if the studio couldn’t make the payments.

Read more: http://www.cbs46.com/story/25754376/film-studio-losing-money-costing-taxpayers-millions#ixzz43y5RwxWJ

The above information is from the website of :
Ann Jones Guider
District IV Commissioner
8700 Hospital Drive
Third Floor, Douglas County Courthouse
Douglasville, Georgia 30134

Some elected officials “get it”.  Others just keep raising their hand and voting yes because of promises that don’t materialize.

 

TWG

Citizens, be informed not fooled!  Only by being informed can the citizens understand what is being done and talked about, and then press our officials to make good decisions for everyone in Jasper County.  That is our goal with the Taxdogs blog.

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One Response to BONDS GONE BAD—But Remember, IT CAN “NEVER,EVER HAPPEN”

  1. Credit Where Credit Due says:

    It is strange to see sleaze ball politicians, in particular Republicans, railing against Socialism while at the same time promoting government financed Economic Development, another insidious “ism”, more commonly known as Fascism, but can be just as easily identified as Crony Capitalism .

    Socialism, simply put, is merely government ownership of the means of production. Fascism on the other hand allows for government control of the economy, while leaving ownership in private hands.

    It is no mystery why the powder puffed pompous asses prefer Fascism to Socialism. The explanation is elementary.

    When the Socialist business fails, it is the government apparatchik who receives the blame, but when the Fascist financed business fails, the private business owner gets full credit for failure, while the useful idiot of a politician falls back on the worn out lame excuse of ”nobody could’ve known.”

    Often, the Monticello News carries articles of public service awards given to Joint Development Authority and Development Authority of Jasper County members for outstanding commitment in gifting private business with millions of dollars other peoples’ money. Let us also see that they, along with the BOC members who signed off on the deal, get the full credit they deserve when one of their multimillion dollar “strategic planning” ventures fail.

    Maybe if the crony capitalists understood that failure carried a personal price, then perhaps they would not be so ready to risk other people’s money in unwarrantable gambles.

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