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.”
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