Walker County gets OK to pay off loan with $15 million bond issue

Walker County Commissioner Bebe Heiskell will receive $10 million from a Walker County Development Authority bond. That money will pay off a $10 million loan she took out earlier this year. And that money paid off another loan, which Heiskell guaranteed on behalf of Hutcheson Medical Center.
Walker County Commissioner Bebe Heiskell will receive $10 million from a Walker County Development Authority bond. That money will pay off a $10 million loan she took out earlier this year. And that money paid off another loan, which Heiskell guaranteed on behalf of Hutcheson Medical Center.

LaFAYETTE, Ga. -- A group gathered in a Walker County courtroom Tuesday morning, expecting to voice their opinions.

They had organized online, claiming the county's decision to issue a bond went one loan too far.

Commissioner Bebe Heiskell said she needed the bond to cover the cost of a loan she took out in March, which itself was needed to cover the cost of another loan she guaranteed two years ago on behalf of Hutcheson Medical Center.

photo Judge Jon "Bo" Wood listens to the opening statements in a case against Thomas Blevins, a former Lakeview Middle School band teacher accused of having an inappropriate relationship with a student, during the first day of trial at the Catoosa County Courthouse on August 11, 2015.

The group of about 30, seated in the first rows of the courtroom, wanted the chain of loans to stop. Never mind that county leaders said the bond issue would give them a debt that is easier to pay off than the current one. Never mind that the alternative - a $10 million loan paid off by Dec. 31 - would require the county to double property taxes.

"If no one pays their taxes, that s-- will stop," Danny Dean wrote on a Facebook page advertising the court hearing.

But when the group arrived, they learned the courtroom was no place for a public protest.

There was a court hearing at which Superior Court Judge Jon "Bo" Wood was supposed to decide whether the bond was legal - not whether it was popular.

Of the group, only one person could speak. Jill Wyse, who owns about 63 acres in Rising Fawn but does not live there full time, filed a formal objection with the court clerk Monday afternoon, allowing her to argue before Wood. Some of the others in attendance later said they expected to speak but didn't learn the rules until it was too late.

It would not have made a difference. County Attorney Don Oliver argued Tuesday that it didn't matter the number of voices in protest - the bond itself was legal.

The Walker County Development Authority will issue the $15.3 million bond, which is legal.

And the authority will spend $5 million on constructing industrial parks, which is legal.

And the authority will give Heiskell $10 million in exchange for the civic center and Mountain Cove Farms, which is legal.

And Heiskell will spend that $10 million to pay off her loan from March, which is legal.

"We have met our burden," Oliver said. "I'll stand on the evidence."

Wood agreed, ruling that the loan is valid after a hearing that lasted about 30 minutes. The authority will issue the bond this morning.

Oliver said the $15.3 million loan will come with a 5 percent annual interest rate and will last 20 years. That will cost the county about $1.2 million a year. To keep the interest rate relatively low, the county agreed to pay an insurance company 0.67 percent of the $15.3 million it is getting, which comes out to about $100,000.

During Tuesday's hearing, Wyse argued that county residents did not have enough time to review the bond and voice opposition. The development authority normally meets on the second Tuesday of the month. But to vote on the bond, the authority gathered on Aug. 31. It announced the meeting on its website the day before and also published a notice in the Walker County Messenger.

Larry Brooks, the authority's executive director, testified that the meeting was at an abnormal time because one of the members of the board was going to be out of town during the regular meeting, which would have been Sept. 8.

Wyse argued Tuesday that the loan might not be legal because the county has not paid the $76,000 fine it received from the Georgia Environmental Protection Division in June. The county has appealed that fine, hoping the Department of Natural Resources commissioner will decrease the punishment.

Oliver declined to comment on the allegations after the hearing. During his argument in court, he pointed out that Wyse lives in Chattanooga and is merely a property owner in Walker County, not a resident.

After the hearing, Wyse said she wished she could have made stronger legal arguments.

"It's very difficult," she said.

"We didn't know what we were getting into," added Jim Pope, another protester. "We weren't prepared."

Contact staff writer Tyler Jett at tjett@timesfreepress.com or at 423-757-6476.

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