Toccoa City Commissioners Respond to Holiday Inn Developer’s Claims

Toccoa City Commissioners speak out on accusations made by the developer behind the stalled Holiday Inn express project in Toccoa.

Last month, a representative for Toccoa Holdings LLC, the developer behind the Holiday Inn Express project at the corner of Big A Road and Fernside Drive, said the project was being put on hold.

That person, who declined to have his name used, pinned the blame on local officials.

He said that Toccoa Holdings LLC received an approved commitment last year from the Development Authority that it would provide bonds to finance the construction of the project.

According to the representative, that was passed by the Development Authority but then once work started on the project, the Development Authority and local officials did not hold up that side of the deal.

Monday, Toccoa City Commissioner Jeanette Jamieson took issue with that accusation.

She said local officials did everything for him they said they would do.

“The general public has got a right to know that the elected officials of this community not one time failed to meet an obligation that was made to him,” said Jamieson.

Toccoa City Commissioner Terry Carter, who was part of the negotiations as a member last year of the Stephens County Development Authority, confirmed that the developer was offered industrial development revenue bonds as an avenue for financing.

Stephens County Development Authority Executive Director Tim Martin said that industrial development revenue bonds are not used to guarantee financing and do not represent a financial commitment or obligation to pay for the project by the Development Authority.

Martin said they are a tool used to start the clock so that a developer can include development costs incurred after the date of this inducement resolution in the bond financing secured by the company.

Carter said that was all made clear.

“He knew at the beginning, even in the draft portion that was e-mailed to his attorney, so she knew from the very, very beginning the types of bonds that would be available to him, nothing that would be guaranteed by the county,” said Carter.

According to Carter, it was not until the end of discussions that the developer claimed that local government agreed to guarantee the bonds.

Carter went on to say that the project was offered other incentives.

“We went to the steps as far as offering incentives, abatements,” said Carter. “He asked for us to do for him what they did in Atlanta, which we exceeded.”

Carter said it was property tax abatements that were offered to the developer.

Jamieson said all of that needs to be out there, considering the accusations by the developer that local officials are to blame for the project being put on hold.

“He does that famous interview … where he says he was promised certain things and this community did not meet their obligations,” said Jamieson. “Well, that is not true. It is an outright lie.”

She went on to say she feels that the developer’s actions with putting the lot up for sale and taking down the hotel signs is part of a plan.

“Now he has put up a ‘For Sale’ sign, I am sure with the thought that will cause enough pressure to be put on elected officials that we will find some way to pay for his Holiday Inn,” said Jamieson. “If we had the means to pay for that, we would have had a nice Holiday Inn a long time ago. We would not have had to wait for him.”

Jamieson also noted that local officials have worked successfully with another developer on a hotel project, pointing at the renovated Country Hearth Inn.

She pointed out that he completely renovated the whole facility without asking for the first tax break.

City commissioners also note that the developer did not want his name used, which they said should say something.

The Toccoa Holdings LLC representative said that they are willing to sit on the project for a long time.

Meanwhile, Martin said local officials recognize the need for hotel space in Toccoa and want to and are willing to work with any developer who wants to help fill that need.