Cary Ichter and Ichter Thomas Wins Another Bond Validation Appeal: Court Affirms Validation of $ 20 Million in Bonds

1. Ichter Thomas Wins Another Bond Validation Appeal:
Court Affirms Validation of $ 20 Million in Bonds
On September 26, 2013, in Sherman v. Development Authority of Fulton County; (Case No.
A13A0861), the Georgia Court of Appeals issued a decision affirming the decision of the
Fulton County Superior Court validating $20 million of development bonds that were
issued to finance the building and equipping of an 80,000 square foot, 122 room hotel,
including a 3,000 square foot partitionable conference center and related facilities.
Validation of the bonds was challenged by John Sherman, who claimed that the
transaction created an illegal tax abatement for the developer of the projects. Due to
technical defects in the manner in which he joined the validation proceeding, the Court
held that Mr. Sherman lacked standing to oppose validation.
Based upon economic analysis performed in connection with the project, it has been
determined that the direct impacts related to the operation of the hotel (262 jobs) and the
indirect impacts related to construction (167 indirect jobs) which will result in the
creation of 429 jobs. Additionally, the total impact on regional economy will include a
labor earnings increase of $8.2 million and an output (business revenues) increase of
$19.4 million.
Ichter Thomas has been involved in the validation of over $400 million of development
bond transactions since 2010. Most of those validation proceedings have been contested and
a number have gone to the Court of Appeals. “I am very pleased by this result,” said Cary
Ichter, lead litigation counsel on the matter. “We should be doing everything we can to
stoke economic development and the creation of jobs in Fulton County. It is always nice to
win a case, but it is even better to participate in facilitating projects that create jobs,
opportunities and wealth in our community.”
For more information about Sherman v. Development Authority of Fulton County; (Case
No. A13A0861), municipal finance litigation, or the commercial litigation practice at Ichter
Thomas, call Cary Ichter at 404-869-7600.