Government watchdog David R. Frazier has filed legal documents in 4th District Court against the Greater Boise Auditorium District, claiming the District is attempting to go around voters with a financing scheme which violates the Idaho Constitution.
In a response to the GBAD “Petition For Judicial Confirmation,” Frazier alleges the district is seeking to go into long term debt, but call the plan to purchase a ball room and kitchen in the new Gardner building a “lease” in an attempt to avoid an election as required by Article VIII, sec 3 of the Idaho constitution.
“The issue before the court is the convoluted financing scheme envisioned by GBAD, using the Capital City Development Corp. as the seller of $23 million in bonds while basing the bond sale on the credit rating and repayment ability of GBAD,” said Frazier.
The constitution requires subdivisions of the state government (cities, counties, taxing districts) to get citizen approval before entering into debt of more than a single year.
According to Frazier, Ada County financed the courthouse in a similar fashion.
He said the Ada County Courthouse is currently owned by the CCDC and Ada County Commissioners announced last week they plan to pay off the debt early, saving taxpayers more than $6 million. They are really writing a check to CCDC while claiming to “pay off bonds” which previous commissioners claimed were not a debt, but a lease.
The case is set for a hearing in Fourth District Court August 4.
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