Friday, May 20, 2005 | ||
Bad Links? | DAPC feels handcuffed by loan lawsuits By JOHN MUNFORD The Development Authority of Peachtree City is hoping that Peachtree National Bank will agree to arbitration to settle its lawsuit against the authority and the City Council for more than $1.04 million in unpaid loans taken out by previous authority members while managing the citys tennis center and amphitheater. The legal black cloud has hung over the current authority, even though none of its members were on board when the loans were taken out. Since the authority no longer handles the two venues, their sole focus is on economic development, but several members said at Tuesday nights meeting that they feel significantly hindered by the litigation. In addition to the PNB suit, the authority also is defending a suit from Group VI and Foley Design Associates asking for $416,628 in unpaid bills from the latest expansion of the tennis center, which included an office building with classrooms and space for a restaurant. Im pretty disappointed that three-quarters of the money in our budget is going to attorneys fees, said authority member Todd Strickland. Its staggering how quickly it adds up. Authority vice chairman Steve Fraas said he didnt think city residents want tax revenues use to pay for attorneys when the funds could be better utilized. Strickland noted that the authority currently doesnt have any assets, and while it would be nice to have a revenue stream to fund economic development activities, it could get lost in the legal mess. The city is also named as a defendant in the bank lawsuit, along with the citys tourism association, which is currently operating the tennis center and amphitheater. In the suit, the city contends that it should not be responsible for paying the loans because they were incurred by the authority. The bank counters that the city should be responsible for the loans because they paid for operations of city-owned facilities. Authority member Steve Savage said Tuesday that he didnt want the lawsuits to handicap the authority in conducting its business. If we wait until the lawsuits end, thats a waste of time, Savage said. Id rather do something than nothing. The authority had a minor setback recently when only one person volunteered to fill a vacant seat on the board, it was announced. It is possible the position will be re-advertised and Strickland suggested authority members seek local residents who might be interested in serving. The authority has been holding off on its election of officers until it can get a full compliment of seven members at a meeting. With the one position remaining vacant for now, they acknowledged Tuesday they will likely have to move forward with that issue. In other business, Strickland suggested the authority pursue an intergovernmental agreement with the city. Currently, the city is performing the authoritys bookkeeping services and includes the authority in its yearly budgeting process for funds. In light of the legal fees the authority is incurring, it should calculate its budget request appropriately, Fraas said. The authority also discussed developing relationships with officials with the city and with the Fayette County Development Authority. Fraas said he would like to explore working with CSX railroad officials to see if some of its clients would like to relocate to Peachtree City for convenient rail access. Fraas said he would like to see the authority have a presence on the citys comprehensive plan committee, particularly since redevelopment is pegged to be one of the major issues the group will tackle in creating the next 20-year plan for the city. Strickland said he was asked to serve on the committee, but he had to turn it down because of time constraints with his schedule. |
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