Sherman v. Development Auth. of Fulton Cnty.

The trial court's order validating and confirming Fulton County's issuance of taxable revenue bonds and bond security documents was vacated and remanded for the trial court to enter a new order containing specific findings and conclusions of law to support its holdings.

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This appeal arises from a bond validation proceeding in which the State of Georgia petitioned the Fulton County Superior Court for a judgment approving the issuance of certain taxable revenue bonds by the Development Authority of Fulton County “DAFC” and validating the bonds and various bond security documents. See OCGA § 36-62-1 et seq. John S. Sherman, a taxpayer and citizen of Fulton County, appeals from the order of the trial court validating and confirming the bonds and bond security. For the reasons explained below, we vacate the order of the trial court and remand this case for further proceedings consistent with this opinion.

The record shows that the purpose of the bonds at issue is to finance the development of a manufacturing facility in Fulton County “the Project” that, once completed, will be leased to Owens Corning Roofing and Asphalt, LLC “Owens”. Thus, among other things, the petition sought to create a bond transaction leasehold estate1 where, in consideration for the issuance of the bonds, Owens agreed to transfer fee simple title in the Project to DAFC, and DAFC and Owens agreed to execute a lease agreement under which Owens will have the right to possession of the Project for a term of ten years, excluding any construction or installation period. At the conclusion of the lease term, Owens will have a right to acquire the Project for nominal consideration.

Sherman v. Development Auth. of Fulton Cnty.

The trial court's order validating and confirming Fulton County's issuance of taxable revenue bonds and bond security documents was vacated and remanded for the trial court to enter a new order containing specific findings and conclusions of law to support its holdings.

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