Cherokee County Approves Ball Ground Recycling Court Settlement

Instead of engaging in a lengthy court battle that would most likely not yield any significant monetary gains, Cherokee County leaders on Tuesday approved a settlement agreement in relation to the failed Ball Ground Recycling venture.

The County Commission and the Resource Recovery Development Authority both unanimously approved the agreement during a called meeting Dec. 30. County Commissioner Jason Nelms was not present.

The agreement stipulates former Ball Ground Recycling operator Jimmy Bobo will pay Cherokee County $62,500, which must be made within 30 days of the approval of the agreement.

The agreement ends the county’s civil suit against brothers Jimmy Bobo and David Bobo, Ball Ground Recycling, Woodtech LLC, BG Land LLC, Bobo Grinding Equipment LLC, Upland Development Group Inc., Georgia National Trucking LLC, Prime Management LLC, J. Bobo LLC, D. Bobo LLC, and Sheffer and Grant Architects P.C.

The agreement also serves as a mutual release by both the plaintiffs and defendants from any liability or claims, and covers elected officials and appointed employees. It also dismisses counterclaims made by the Bobo brothers towards the county.

County Attorney Angela Davis said the $62,500 figure “pales in comparison” to the millions the county has lost in the failed venture due to Bobo’s default on the loan. The money will be applied to legal fees associated with the civil case.

County Commission Chair Buzz Ahrens, who said the vote may be the “single most important” one cast by commissioners in 2014, said he felt it would be best for the county to consider the vote before the year comes to a close.

Ahrens noted two financial institutions have placed liens on the site of the former plant, which is situated along Highway 5 just south of Ball Ground. So if the county were awarded anything by a judge, any chance of recovering lost revenue was “little to remote.”

The “practical realities” of the matter is more time and expenses would not bring anything substantial to the county, the chairman added.

District 3 Commissioner Brian Poole said he felt the case was over when Blue Ridge Judicial Circuit District Attorney Shannon Wallace indicated no criminal acts occurred in relation to the venture. Poole added reviewed the case and saw “there was nothing to gain from it.”

While Poole said he was surprised the county received any monetary offer, he noted the vote to approve the settlement agreement allows the county to move forward and focus on finding a prospective buyer or lessee of the property.

Ray Gunnin, who serves District 2 residents, noted the settlement “by no means offsets what we’ve been through (and) what the county (has) been through.”

District 1 Commissioner Harry Johnston, whose last day of service to residents is Jan. 1, said he felt the measure should have been taken up by the new commissioner, but added respected the will of the majority of the board.

The commission in 2006 created the Resource Recovery Development Authority and backed up to $18 million in bonds, which were used to relocate Ball Ground Recycling to land along Highway 5 just south of Ball Ground.

The agreement stipulated Bobo was to make payments of the bond into an escrow account, but the county learned in late 2011 Bobo hadn’t been making the payments.

That forced the county to pick up the tab, which it will still be responsible for if it does not find a new operator for the site. Cherokee County has been actively recruiting and talking with possible companies to take over operations.

Ball Ground Recycling in 2012 filed for Chapter 11 bankruptcy, and the company was subsequently forced to remove itself from the property. The company was eventually dismissed from bankruptcy court, giving the county the green light to go after the company and Bobo to recover money from the failed deal.

The county commission approved a forensic audit at the request of a previous Cherokee County grand jury, which launched an investigation into the failed venture. The final tally of the audit’s cost was nearly a half-million dollars.

After several months of probing, a grand jury in August found no “prosecutable criminal case” with the venture and recommended the county divert its resources from investigating any criminal wrongdoing in the deal to finding a new operator for the vacant site.

Following the grand jury’s guidance, Wallace earlier this year closed the investigation into the case, a probed that included the Cherokee Sheriff’s Office, the Georgia Bureau of Investigation and Federal Bureau of Investigation.

What Should You Read Next?

• Cherokee District Attorney Closes Ball Ground Recycling Investigation
• Cherokee Cleared In Ball Ground Recycling Failure
• District Attorneys: No Jurisdiction To Review Ball Ground Recycling Audit
• Ball Ground Recycling Dismissed From Bankruptcy
• Cherokee Grand Jury: Delay Release Of Ball Ground Recycling Audit
• Ball Ground Recycling Auditor Asks For More Money — Again
• Cherokee Commission Oks Forensic Audit on Ball Ground Recycling
• Forensic Audit Costs Cherokee Taxpayers Nearly $500,000
• Cherokee County Sues Bobo Brothers
• Cherokee Approves Letter of Interest For Failed Recycling Plant

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