Private cities debate spreads to Georgia
Source: Annie Gentile, American City & County, Jun 1, 2007
The Georgia legislature passed a constitutional amendment this spring to allow the creation of infrastructure development districts (IDDs). If voters approve, private developers will be able to issue tax-free bonds to pay for infrastructure in the communities they build and assess homeowners for the long-term repayment of the bonds. Various forms of IDDs exist in 17 states and are under consideration in several more, but some organizations oppose their spread.
....... Critics call it “private cities legislation,” saying it will allow real estate developers to create their own quasi-governments with little public oversight while providing few protections to homeowners should the developments fail.