Ichter Prevails in $284 Million Bond Validation
On August 19, 2016, Cary Ichter of Ichter Davis LLC represented the Development Authority of Fulton County in three contested bond validation hearings at which bond financing for $284 million of projects were approved. The transactions included the Buckhead Park Avenue Holdings, LLC project, a $120 million transaction involving the development of a multi-family residential development and parking deck. It is estimated that the project will generate 300 construction jobs, 5 new full time jobs, and 25 contract or service jobs, as well as enhance tax revenue collections by a factor of 20 times in year one of the deal and 40 times in year ten of the deal.
Also validated was the Peachtree at Stratford Apartments, LLC transaction, a $130 million bond financing for the development of a mixed use residential and retail development, consisting of 362 apartment units and 30,000 sf. ft. of retail space. It is estimated that the project will generate 500 construction jobs, 50 new full time jobs, and 20 part time jobs. The completion of the project will increase the value of the parcel and associated assets from roughly $17 million to $130 million, which will substantially increase ad valorem tax revenues for the County.
Finally, the Buckhead Place Hotel Company, LLC project, a $34 million project was also approved. That project involves the development of a 125 room hotel 20,000 square feet of retail space, and 110,000 square feet of office space along with a 7 story parking deck. It is estimated that the project will generate, directly or indirectly, 255 construction jobs, 96 new full time jobs and 48 part-time jobs.
Mr. Ichter has participated in the validation of approaching $4 billion of development bond transactions since 2010. Many of those validation proceedings, including the most recent group, have been contested, and a number have gone to the Court of Appeals.
“I am very pleased whenever we are able to get one of these transactions validated and confirmed,” said Mr. Ichter. “We should be doing everything we can to promote economic development and the creation of jobs in Fulton County. It is always nice to win a case, but it is even better to participate in facilitating projects that create jobs, opportunities and prosperity in our community.”
For more information about municipal finance litigation or the commercial litigation practice at Ichter Davis, call Cary Ichter at 404-869-7600.