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Why Montgomery County is suing over the proposed intermodal facility at Elliston

By Steven R. Minor

This press release states the County's position.

The constitutional provision at issue, Art. X, section 10, provides:

"Neither the credit of the Commonwealth nor of any county, city, town, or regional government shall be directly or indirectly, under any device or pretense whatsoever, granted to or in aid of any person, association, or corporation; nor shall the Commonwealth or any such unit of government subscribe to or become interested in the stock or obligations of any company, association, or corporation for the purpose of aiding in the construction or maintenance of its work; nor shall the Commonwealth become a party to or become interested in any work of internal improvement, except public roads and public parks, or engage in carrying on any such work; nor shall the Commonwealth assume any indebtedness of any county, city, town, or regional government, nor lend its credit to the same. This section shall not be construed to prohibit the General Assembly from establishing an authority with power to insure and guarantee loans to finance industrial development and industrial expansion and from making appropriations to such authority."

They'd better watch what they ask for, as some people think that this part of the Constitution is most commonly violated by . . . cities, towns, and counties, doing economic development deals.

Full post as published by Southwest Virginia Law Blog on September 26, 2008 (boomark / email).