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Sunday May 1st, 2016 8:28AM

Gainesville sues Hall County over SPLOST funding

By Staff
GAINESVILLE - The City of Gainesville is taking Hall County government to court over what they allege is a breach of contract according to Mayor Danny Dunagan at Tuesday night's City Council meeting.

Mayor Dunagan disclosed the suit is over the county's denial of Special Purpose Local Option Sales Tax (SPLOST) funds to pay for the new $20-million Public Safety Complex on Queen City Parkway.

"When we built this facility we asked the county if we could get our SPLOST proceeds up front so that we could pay the facility off in a four year time span to save close to a million dollars of interest," the Mayor said.

That was the agreement that Dunagan says the county has backed out of.

"The agreement they made was to pay us for the first four years so we could pay this facility off", Dunagan said. "Now they've backed out of that deal with us still owing about $6-million and we've got to meet our obligations with our bonds. They've backed out on us so we did enter a suit today for breach of contract. It'll be in court and we'll just see where it goes from there; we'll see what the judge says."

Contacted Wednesday morning, Hall County government spokeswoman Katie Crumley said the county does not comment on active litigation.
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