Attorney Substantiates Claim

Roger Murray with the law firm Murray Barnes Finister LLP in Atlanta, has responded to a request from the Newton County Board of Commissioners concerning the bonds issued for the Baxter plant.

Mr. Murray was asked to evaluate the transaction and determine if it was done properly from a legal perspective and determine if Newton County has any potential liability with respect to the bonds.

Mr. Murray found the bond issue was done in accordance with the laws of Georgia, and the bond issue has “absolutely no economic substance.”

He explained further that these types of bonds are typically referred to as “phantom bonds” because no money ever changes hands. The only reason they were issued was to document and protect the ad valorem property tax abatement offered to Baxalta (formerly Baxter).

He went on to add that Newton County has no actual or potential liability with respect to the bonds. In addition, “the citizens of Newton County (and the other member counties) had ample notices of the issuance of the bonds.”

His fifth point was that “because the bond issue has no economic substance, notice of the issuance of the bonds is irrelevant. The only notice that is relevant is the notice of the property tax abatement offered to Baxalta. The citizens of Newton County (and the other member counties) had ample notice of the property tax abatement.”

He concluded saying the concerns of the article put out by the Taxpayer’s Watchdog Group, and other citizen concerns that he was made aware of are unfounded.