SCDA Responds to Concerns Posted Online

The Stephens County Development Authority said last week it wants to clarify something that has reportedly been circulating on Facebook.

Currently, the Stephens County Development Authority is working with ASI Southeast on proposed Industrial Revenue Bonds.

According to the Development Authority, these are bonds that are used to assist companies to finance projects.

Development Authority officials said these Industrial Revenue bonds are paid strictly by the company and are not paid from public funds and are not obligations of the Authority or Stephens County.

However, Stephens County Development Authority Executive Director Tim Martin said they have heard concerns that these bonds are similar to the bonds issued by Franklin County related to the hospital in Lavonia that the county is now obligated to cover after the hospital could not pay them and was sold to St. Mary’s in Athens.

“Somebody posted on Facebook and said this is bad for Stephens County, this obligates us for all kinds of things, this is just like what happened in Franklin County,” said Martin. “It is absolutely not like that.”

Martin said that the Development Authority wants to clarify that the general obligation bond in Franklin County is completely different than the Industrial Revenue Bond being used by ASI.

He went on to say that the Stephens County Development Authority has no liability on the ASI bond issue and simply serves as a pass-through for the bonds to go through.

“It is a tool that the IRS recognizes to grant certain privileges to a company,” said Martin.

Martin said that the bond payments are the sole responsibility of the company, ASI in this case, and shall not payable from taxes or any other public funds.