City Council responds to Project Jackson lawsuit - WFXG FOX54 Augusta - Your News One Hour Earlier

City Council responds to Project Jackson lawsuit

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NORTH AUGUSTA, SC (WFXG) -

The North Augusta City Council has passed a 7-0 resolution regarding the recently filed lawsuit over Project Jackson.

Steve Donohue, with the River Club Homeowner's Association, filed the lawsuit last week.

City Administrator Todd Glover released the following statement in regards to the vote:

"While it is not the desire of the City of North August to file a lawsuit against the River Club Homeowners Association (RCHOA), the recent action filed on behalf of the RCHOA forces the City to move to resolve this issue quickly so as to protect the sizeable investment that benefits our entire city and region.  While we realize that there are those in the RCHOA who oppose the lawsuit filed on their behalf, unfortunately they cannot be individually removed from the suit.  It is our hope that this can be resolved as quickly as possible to allow the project to remain on track. " 

 

The entire resolution reads as follows:

RESOLUTION NO. 2013-36
AUTHORIZING CITY OFFICIALS TO TAKE ALL ACTION NECESSARY WITH REGARD TO CERTAIN LITIGATION, AND OTHER MATTERS RELATING THERETO
WHEREAS, the Mayor and the City Council of the City of North Augusta, South Carolina (the "City") enacted Ordinance No. 96-10 on December 16, 1996 providing for the creation of a tax increment financing district within the City and other matters related thereto (the "TIF Ordinance");
WHEREAS, the City desired to make certain amendments to the TIF Ordinance and enacted Ordinance No. 2013-19 on November 18, 2013 (the "Amending Ordinance");
WHEREAS, the City is informed that a suit is currently pending in the Court of Common Pleas for the Second Judicial Circuit, styled as Stephen P. Donahue, et al. v. City of North Augusta, et al., Case No. 2013 CP 02-02781, which suit seeks the invalidation of the Amending Ordinance, among other relief (the "Litigation");
WHEREAS, the plaintiffs are Stephen P. Donohue and The River Club Homeowner's Association of North Augusta, Inc.;
WHEREAS, the existence of the Litigation is anticipated to delay the public improvements envisioned in the Amending Ordinance and inhibit the issuance of any debt obligations secured by TIF Revenues; and
WHEREAS, the expeditious resolution of such litigation is in the best interests of the City.
NOW THEREFORE, BE IT RESOLVED that the Mayor and the City Council of the City of North Augusta, South Carolina, have determined the following:
1. The Mayor and the City Administrator are hereby authorized to take all action necessary or helpful in their judgment to bring the Litigation to a prompt conclusion in the City's interest, including, but not limited to (a) answering the complaint, (b) bringing counterclaims against the Plaintiffs, and (c) initiating additional litigation against the Plaintiffs, including, but not limited to, filing suit for declaratory judgment in the South Carolina Supreme Court.
2. The City Council expressly authorizes the Mayor and the City Administrator to dismiss any claims by the City against any of the Plaintiffs should such party dismiss, with prejudice, their claims against the City in the Litigation.
RESOLUTION AUTHORIZING LITIGATION
Page 2
DONE, RATIFIED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF NORTH AUGUSTA, SOUTH CAROLINA, ON THIS 16TH DAY OF DECEMBER, 2013.


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