Bill hurts construction funding for some Georgia colleges, suit says

Any assets and liabilities held by the authority would belong to the state on July 1, the legislation says. The lawsuit complaint calls the legislation unconstitutional, in part, because it says the state cannot act in “an issuer role for debt issued to benefit private entities.”

The authority was created in 1978 by the state to issue tax-exempt revenue bonds to finance projects for qualified private colleges and universities in Georgia, the lawsuit complaint says. The authority has facilitated more than 100 transactions for Agnes Scott College, the Savannah College of Art & Design and Emory and Mercer universities totaling $6.3 billion.

Some projects have included academic and research facilities at Emory; the football field, admissions and welcome center on Mercer’s Macon campus and campus facilities on SCAD’s Atlanta and Savannah campuses.

“Without the PCUA, these institutions would be forced to access the capital markets on a taxable basis or through local development authorities, which would result in increased interest cost or transaction costs to these institutions,” the lawsuit complaint says.

Attorneys at the Alston & Bird law firm, which is representing the authority, declined comment. A spokeswoman for the attorney general’s office also declined comment. Both sides said they don’t discuss pending litigation.