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Facts
To Consider About
Your Local
Another
twenty tons on the
way to district two
Industrial
Development Authority
When
asked, eight of ten
local citizens have
either never heard
of the IDA, or have
no clue as to its
purpose or scope of
powers. Placed forth
as a purely public
charity to benefit
the people of the
state of Georgia, it
has successfully
maintained an
innocuous existence
in the minds of the
public.
Local
development
authorities possess
extremely broad
powers, yet maintain
little or no
accountability for
their actions.
Members are chosen
by the local
governing body and
appointed to serve.
Decisions rendered
by this body then
determine the nature
of future
development in a
given area. Once
made, decisions such
as these are all but
impossible to
reverse. A clear
local example would
be the interchange
at Interstate 75 and
hwy.36. With the
heavy truck traffic
and light industrial
development that has
taken place there, a
once-promising area
for suburban
residential
development has been
forever eliminated.
It follows then that
future school
quality as well as
future resident
quality all are
involved in what
becomes a complex
equation. Bad
decisions are
permitted with no
risk of punishment.
- Today,
at the end of
2005, our
once-great
industrial base
continues to
erode. Because
of less
governmental
regulation,
lower labor
costs, tax
incentives, and
other items
beyond the scope
of this article,
companies are
increasingly
choosing to
locate and/or
relocate outside
of the
territorial
borders of the
United States of
America. We must
face squarely
the facts that
our local tax
abatements and
offers of other
incentives are
no longer the
fancy carrots
that they once
were. Even if we
agree to provide
free labor, free
land, freedom
from taxes, and
local
interference,
the
environmental
and other issues
which face
industry today
remain
millstones
attached to
their necks,
when compared to
other eager
countries. Today
the business of
closing plants
has actually
developed into a
full fledged
industry by
itself. A visit
to www.plantclosings.com
provides an
illustration of
the change that
has taken place
here in recent
years.
Finally,
the question must be
asked, "How
does the IDA benefit
our county",
followed by, " Do
we really still need
the IDA?"
And Lastly,
The question with
possibly eight
different answers,
"Who Really
Benefits?"
Below
are highlights from
Georgia law
concerning the
powers vested in
local authorities
Did
You Know?
The
Authority has a
"Perpetual
Existence?"
36-62-14
Their
bond sales are not
subject to Georgia
Securities Laws?
36-62-11
Revenue
bonds sold are not
debt obligations of
the county, and one
may not compel the
county to honor this
debt. 36-62-10
While
not always moral,
insider type deals
are actually legal;
subject to the
following
36-62-5(e)(1)(B)
- The
authority may
purchase from,
sell to, borrow
from, loan
to, contract
with, or
otherwise deal
with any director
or any
organization or person
with which any
director of the
authority is in
any way
interested or
involved, provided
(1) that any
interest or
involvement by
such director is
disclosed in
advance to the
directors of the
authority and is
recorded in
the minutes of
the authority,
(2) that no
director
having a
substantial
interest or
involvement may
be present
at that portion
of an authority
meeting during
which discussion
of any matter is
conducted
involving any
such
organization or
person, and (3)
that no
director having
a substantial
interest or
involvement may
participate in
any decision of
the authority
relating to any
matter involving
such
organization or
person. As used
in this
subsection, a "substantial
interest or
involvement"
shall mean
any interest or
involvement
which reasonably
may be expected
to result in a
direct financial
benefit to such
director as
determined by
the authority,
which
determination
shall be final
and not subject
to review.
- O.C.G.A
36-62-9
Purpose
...develop and
promote trade,
commerce, industry,
and employment
opportunities for
the public good...
- O.C.G.A.
36-62-6
Powers
Each
authority shall
have all of the
powers...
(1) To bring and
defend
actions...
(3) To make and
execute
contracts...
(4) To receive
and administer
gifts, grants,
and devises of
any
property and to
administer
trusts...
(5) To acquire,
by purchase,
gift, or
construction,
any real or
personal
property desired
to be acquired
as part of any
project...
(6) To sell,
lease, exchange,
transfer,
assign, pledge,
mortgage,
dispose of, or
grant options
for any real or
personal
property...
(7) Except as
otherwise
provided in
paragraph (7.1)
of this Code
section, to
dispose of any
real property
for fair market
value,
regardless of
prior
development...
(7.1) ...to
dispose of any
real property
for fair market
value or
any amount below
fair market
value as
determined by
the authority...
(8) To mortgage,
convey, pledge,
or assign any
properties,
revenues,
income, tolls,
charges, or fees
owned or
received by the
authority...
(9) To appoint
officers and
retain agents,
engineers,
attorneys,
fiscal agents,
accountants, and
employees and to
provide for
their
compensation and
duties...
(10) To extend
credit or make
loans to any
person, firm,
corporation, or
other industrial
entity...
(11) ...retain
equitable
interests,
security
interests,
or other
interest in any
property, real
or personal...
(12) To
construct,
acquire, own,
repair, remodel,
maintain,
projects...
(13) To borrow
money... and to
use the proceeds
thereof for the
purpose of
paying all or
part of the cost
of any
project...
(14) As security
for repayment of
authority
obligations,
to...
encumber any
property, real
or personal, of
such authority
and to...
provide for
foreclosure or
forced sale of
any property of
the authority
upon
default, on such
obligations...
(16) To expend
for the
promotion of
industry,
agriculture, and
trade within its
area of
operations any
funds of the
authority
determined by
the authority to
be in excess of
those needed for
the other
corporate
purposes of the
authority; and
(17) To do all
things necessary
or convenient to
carry out the
powers expressly
conferred by
this chapter.
- The
Free-Enterprise
system is what
made America the
envy of the
world. It made
us number one in
every category
across the
board. All this
was done without
the help or
enticements of
any governmental
entities.
Every small town
across Georgia
bears silent
testimony to
this principle;
all one must do
is to look. Each
downtown area
possesses a
number of well
built brick
structures,
often several
stories high.
Each was
constructed by a
small local
business person
with his own
funds, money
that he earned
and he was
allowed to keep.
Pride in
accomplishment
often lent the
owners name to
the top of the
structure, along
with the date.
Ever wonder why
this doesn't
happen today?
Governmental red
tape and taxes
have taken the
profit margin
and sliced it,
leaving less
than half for
the little guy.
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