Chattanooga Times Free Press

Judge dismisses zoning lawsuit over future $5B Rivian EV plant

- BY ZACHARY HANSEN AND MERIS LUTZ

A Morgan County, Georgia, judge dismissed a lawsuit last week that attempted to stop the constructi­on of electric vehicle startup Rivian’s $5 billion factory.

Six people, who either live or own property near the 1,800-acre project site, filed a lawsuit last January that accused the state of assuming control of the property to illegally circumvent local zoning codes and land disturbanc­e permits. They alleged that the state acquired the project site to avoid scrutiny and public opposition during local rezoning hearings.

But Ocmulgee Judicial Circuit Judge Stephen A. Bradley ruled Tuesday that local zoning does not apply to government­owned land, even if it’s being leased to a private company for economic developmen­t.

“While the Court may be sympatheti­c to local landowners adversely affected by the Rivian Project, it is compelled to follow existing law,” Bradley’s ruling said. “… As such, the actions on the Rivian Project property are immune from any Morgan County land use regulation.”

His ruling is the latest in a string of legal victories for the state regarding the Rivian plant — Georgia’s second-largest economic developmen­t project by promised jobs and investment. The company, which declined to comment on the lawsuit’s outcome, is preparing to begin vertical constructi­on on its 16 million-square-foot factory early this year. Cox Enterprise­s, which owns The Atlanta JournalCon­stitution, also owns about a 4% stake in Rivian.

“It is a new year, and this ruling is a defining new chapter as we look towards a bright future of success with Rivian,” the state and Joint Developmen­t Authority of Jasper, Morgan, Newton and Walton Counties (JDA) said in a statement.

John Christy, an Atlanta attorney for the plaintiffs, said his clients are considerin­g an appeal. They will have 30 days to file notice of such action.

Christy said giving the state and local government­s unmitigate­d power to greenlight developmen­t projects on public property is a dangerous precedent to perpetuate.

“If the state were to say it was a valid economic use to put a liquor store next to a school, the state could theoretica­lly buy the land and put a liquor store or bar or any other type of business next to a school and just completely (disregard) local zoning ordinances,” he said. “To us, that doesn’t seem to be right.”

SOVEREIGN IMMUNITY

Rivian’s EV factory is slated for rural property in southern Morgan and Walton counties, located roughly an hour east of Atlanta.

The site consists of 28 parcels that were acquired by the JDA, a government entity. The parcels were zoned for agricultur­al use, not industrial.

The JDA initially filed rezoning requests that were set to go before the Morgan County Commission in March 2022. But the Georgia Department of Economic Developmen­t stepped in and assumed control of the project a month before the scheduled vote and withdrew the rezoning requests.

Christy’s clients filed their lawsuit soon after.

During a November hearing, attorney Charlie Peeler, who represents the state, argued that Bradley should dismiss the lawsuit because stateowned land is not subject to local regulation, part of a legal concept called sovereign immunity.

“The plaintiffs have never cited a single case where a local restrictio­n was imposed on state-owned property,” Peeler said.

Christy argued that state law only allows for a government’s plans to supersede local zoning if it’s for a public purpose, but the state countered that past economic developmen­t projects like this have survived similar legal challenges and have a legal precedent. The state also argued that the scale of the Rivian factory, which is expected to employ 7,500 workers, separates it from other private endeavors.

Bradley agreed with the state, although he said the scale doesn’t earn the project extra legal protection­s.

“The state’s argument also seems to suggest that the scale of this project allows it to be viewed differentl­y from other private projects, somehow recasting a private manufactur­ing plant into a public project. It does not,” the judge wrote. “The desired end result is still a private, for-profit manufactur­ing plant, not a public facility.”

THE BATTLE CONTINUES

A similar zoning fight remains in an Atlanta court.

Christy’s clients filed a nearly identical lawsuit in Fulton County, where the Georgia Department of Economic Developmen­t’s offices are based.

That case, too, faces an uphill climb. Fulton Superior Court Judge Thomas Cox Jr. ruled in April that the plaintiffs will need to pay upfront nearly $365,000 to cover the government’s legal costs and attorney’s fees under what’s known as a petition for bond. It’s a tactic designed to discourage frivolous lawsuits against local and state government­s.

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