BREAKING NEWS The Latest Tariff Coverage

Fight against bonds falters in Georgia court, moves to federal court

Planned monkey breeding facility for Safer Human Medicine
A $300 million bond and a planned monkey breeding facility's fate are at stake in a legal struggle in Georgia.

An effort to stop a monkey breeding facility in Georgia and invalidate $300 million of taxable revenue bonds is picking up in federal court after faltering in state court.

The Georgia Supreme Court earlier this month denied certiorari (refused to consider) on a fall Georgia Court of Appeals decision leaving the bond validation in place.

The Georgia Superior Court validated the bonds for Safer Human Medicine in January 2024.

Area local governments favored validation then turned against it after the bonds were validated.

A paused suit of SHM against the Decatur County-Bainbridge Industrial Development Authority in federal court seems poised to reactivate. Both parties informed the U.S. District Court for the Middle District of Alabama of the denial of certiorari Friday and told the court the first step to activating the federal case is for the authority to file a response to the complaint by May 2. The next step is for the court to consider the motions to intervene filed by the state of Georgia and four Decatur County residents.

SHM's federal case seeks the court to order the authority, the city of Bainbridge, Decatur County and the Decatur County Board of Tax Assessors to perform duties under contracts, the payment in lieu of taxes agreement and a project agreement. The state case was narrowly focused on the bond validation.

The state, in its motion to intervene in the federal case, said the bonds cannot be legally executed regardless of how the state court ruled.

Joseph Mulholland, district attorney for the South Georgia Circuit, argued in December Georgia's government has the right to intervene.

Mulholland said since the bonds weren't validated in a meeting properly held under the Georgia Open Meetings Act, the variety of agreements and contracts associated with them can't be enforced.

He said SHM and the authority were colluding to secure a court ruling in favor of the agreements, even though SHM's suit appears to be against the authority.

Mulholland argued that a section of the PILOT agreement allows termination of the bonds.

The bonds' validation was only good until Feb. 29, 2024, Mulholland said. "Because the time period of the validation has expired, the bonds cannot now be issued without a new validation proceeding filed by the state."

The four residents seeking to intervene in the federal case said the hearing where the bonds were considered didn't meet government open meeting laws.

A publicist for SHM said it wouldn't have a comment at this time.

For reprint and licensing requests for this article, click here.
Law and legal issues Georgia Revenue bonds Private activity bonds Public finance
MORE FROM BOND BUYER