Sherman v. Atlanta Independent School System

The issue on appeal in this case involved the use of local school taxes for general redevelopment purposes following the Supreme Court's February 2008 decision interpreting the Georgia Constitution's Educational Purpose Clause in "Woodham v. City of Atlanta," (657 SE2d 528 (2008)); the subsequent amendment to the Constitution's Redevelopment Powers Clause in November 2008; and the repeal and reenactment of the statutory Redevelopment Powers Law in April 2009. Appellant John S. Sherman argued that the Court's holding in "Woodham" violated the Educational Purpose clause, rendered the resolutions, redevelopment plans, and intergovernmental agreements approving the City's Perry-Bolton and BeltLine tax allocation districts ("TADs") unconstitutional in their entirety, void ab initio, and unamendable. Appellees the Atlanta Independent School System, City of Atlanta, and Atlanta Development Authority, argued that Woodham invalidated only a particular bond issuance for the BeltLine project and had no effect at all on the constitutional validity of the local government approvals for the BeltLine TAD, much less the Perry-Bolton TAD. Upon review of the arguments, the Supreme Court concluded Appellees were wrong. "It is clear that, under the law when we decided Woodham in February 2008, the local government approvals for the Perry-Bolton and BeltLine TADs would have been ruled unconstitutional to the same extent that this Court held that the proposed funding for the BeltLine bonds was unconstitutional; at that time, local school taxes could not be used for general redevelopment purposes. But Sherman is also wrong . . . because the subsequent constitutional amendment and revision of the statute governing TADs changed the applicable law, and those changes were expressly made retroactive with respect to the county, city, and local board of education approvals needed to use school taxes for redevelopment purposes. Thus, Sherman's constitutional challenges to the Perry-Bolton and BeltLine TADs lack merit." Sherman's other arguments, were also found meritless. Accordingly, the Court affirmed the trial court's grant of summary judgment to Appellees and its denial of partial summary judgment to Sherman. View "Sherman v. Atlanta Independent School System" on Justia Law