ATLANTA - A circuit court judge ruled last week that $25 million of bond anticipation notes can be issued for a controversial transportation park project to be built in Bowling Green despite objections from opponents who charge there won't be enough revenues to secure the debt.
Processing Content
The judge's ruling in Franklin County Circuit Court in Kentucky was welcome news to proponents of the $100 million Kentucky TriModal Transpark. They have been trying for more than a year to move forward with the project, which will include a new airport and rail and highway transportation services.
While proponents have touted the project as a means to stimulate economic development in the area, opponents say not enough money will be made to pay off the debt. They also argue that the project will harm the environment.
A sale date has yet to be determined. Proceeds are needed to cover land acquisitions, infrastructure, and the first phase of development for the park.
The Bans would be secured via a lease with Warren County and a sublease with the county and the Kentucky Intermodal Transportation Authority, which is managing the project. The five-year notes would be sold competitively through the Bowling Green/Warren County Development Authority.
Ross, Sinclaire & Associates Inc. is the financial adviser. Cox, Bowling and Johnson is the bond counsel.
Joey Roberts, a member of Warren County Citizens for Managed Growth, a citizens group opposed to the park, filed suit claiming that the project's organizers had submitted inaccurate information about the financial and environmental risks of the project. But Judge Roger Crittenden ruled that the decision of the County Debt Commission approving the debt was based on substantial evidence to support the financial feasibility of the Bans.
Dan Cherry, the president of KITA, noted that the feasibility of the debt has been approved at several levels, beginning with the Warren County Fiscal Court, which originally approved the issuance last year. Support has since been garnered from the City of Bowling Green, the state's local debt officer, and the Warren County Debt Commission.
Roberts has 30 days to appeal the circuit court's ruling. While Roberts could not be reached for comment, a member of an environmental group opposed to the project criticized the judge's ruling.
"It's astonishing that a judge would rule that a government commission is under no obligation to consider evidence presented by opponents of the transpark," said Fred Anderson, a spokesman for Karst Environmental Education and Protection. "The debt commission is responsible for seeing that tax dollars are not put at undue risk. Joey Roberts and his attorney presented ample evidence that the transpark is a highly risky venture, both financially and environmentally."
