A federal judge on Friday dismissed a lawsuit filed against Buena Vista after the city stopped making loan payments on the Vista Links golf course.
In his opinion, U.S. District Court Judge Norman Moon agreed with the city’s position that Buena Vista’s obligation to pay off the loans is a moral one and not legally enforceable.
ACA Financial Guaranty Corp. sued the city in federal court in February 2017 after Buena Vista stopped making payments on the $9.2 million bond issue that financed the golf course. The city said it could no longer afford the payments, which left ACA, the bond’s insurer, with a bill of $660,000 per year.
