Nearly two years after the city of Buena Vista walked away from a $9.2 million debt on its municipal golf course, it finds itself headed to a courtroom.
The city was sued Monday by ACA Financial Guaranty Corp., the firm that agreed in 2005 to insure bonds used to finance the Vista Links course. ACA has been making payments since the city’s default in late 2014.
In a lawsuit filed in Buena Vista Circuit Court, lawyers for the New York firm are asking a judge to order the city to resume payments.
Should it refuse, that would lay a legal foundation for a step that ACA has so far been reluctant to take — foreclosure on the golf course and the buildings that house city hall and the police department, which Buena Vista pledged as collateral when the bonds were issued.
Although ACA signaled in correspondence earlier this year that it would rather avoid the unusual step of taking possession of a city hall, the firm’s attorney said Monday that remains an option.
