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Lula claims Hall broke wastewater plant deal
Total project costs were about $10 million
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The city of Lula is suing the Hall County Board of Commissioners, accusing it of not paying promised construction costs for a wastewater treatment facility.

That's according to a complaint filed with the Superior Court of Hall County on March 2.

After the initial agreement, the city secured partial funding for the facility through a federal subsidy.

In the complaint, Lula's attorneys cite a 2006 interlocal agreement between the two governments in which the city agreed to "construct and maintain" a wastewater treatment facility that would serve both Lula and a portion of unincorporated Hall County, with Hall County paying part of the construction costs.

Total project costs were about $10 million, according to documents provided by the city.

"Hall County's unjustified refusal to remit payment to Lula for all amounts due under the agreement demonstrates bad faith and stubborn litigiousness," the complaint reads, "and Hall County's actions have caused and continue to cause Lula to incur unnecessary trouble and expense."

Part of the construction was funded through the 2009 federal stimulus. However, the total amount of that grant is not included in the documents.

According to a Georgia Environmental Finance Authority document, the city received a $6 million federal subsidy and $2.6 million in low-interest loans.

In its complaint, Lula's attorneys say Hall County has argued that the grant money should be applied as credit against the costs of the water treatment facility.

However, Lula argues such a deduction is not part of the original signed agreement.

Lula and Hall County officials declined comment for this story, citing a policy of not speaking about pending litigation. The Times was unable to reach Hall County Attorney Bill Blalock on Thursday.

Brent Hatcher, an attorney representing Lula, said, "The complaint that we filed speaks for itself."

The county has 30 days to respond to the summons before the complaint could go before a judge.


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