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KELLY D. SIMPKINS OBTAINS SUMMARY JUDGMENT

Kelly D. Simpkins, representing the City of Clinton, Mississippi, obtained Summary Judgment. In Clinton Lodging, LLC v. The Mayor and Board of Aldermen for the City of Clinton, Mississippi, a developer sued the City claiming that the City was obligated to issue tax increment financing (TIF) bonds in favor of Clinton Lodging for development of infrastructure in connection with construction of the developer’s hotel. Clinton Lodging alleged that the City’s resolutions mandated that the City issue the bonds and asked the Court to issue a writ of mandamus ordering the board to place on its agenda a vote to issue the bonds and to order the Board of Aldermen to vote “yes” to issue the bonds. The City of Clinton filed a Motion to dismiss on the grounds that the resolutions were not binding on the current board and whether to issue TIF bonds is a discretionary function. The Court agreed finding that “it is undisputed that a decision of a municipality to issue TIF bonds is a discretionary function” and that the City’s resolutions “at best, support an argument that the Board of Aldermen had an intent to enter into an agreement in the future to issue the TIF bonds” and not a binding agreement. To obtain a copy of the Circuit Court’s opinion, please contact Kelly D. Simpkins.

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