Monday, September 4, 2023–9:17 p.m.
-John Bailey, Rome News-Tribune-
This story is possible because of a news-sharing agreement with the Rome News-Tribune. More information can be found at northwestgeorgianews.com.
After several months of back and forth between a Tennessee-based metal recycling company and Floyd County, Bordeau Metals has filed a lawsuit seeking $28 million in damages.
The lawsuit filed in U.S. District Court in Rome on Friday claims that pressure applied by representatives of Floyd County caused the termination of Bordeau’s metal recycling contract as part of the decommissioning at Georgia Power’s Plant Hammond.
The company further claims the cancellation of that contract cost them upwards of $28 million.
The largest chunk of that figure is approximately $20 million the company claims they have lost from the processing and resale of approximately 50,000 tons of scrap metal from Plant Hammond that they expected to sell at approximately $415 per ton.
The second largest amount is $6 million the company claims as the cost of equipment — including shears, cranes, trucks and trailers — for this project.
The company also claims they spent $1,500,000 to prepare the property for operations, including clearing and grading as well as the installation of an office, scale, utilities and other equipment.
The claim is that Floyd County representatives, specifically County Manager Jamie McCord, applied pressure to Georgia Power, which then instructed Brandenburg Service Company to prematurely end its subcontract with Bordeau.
“(The) defendants interfered with (Bordeau’s) contractual relationship with Brandenburg by taking wrongful actions or omissions which culminated in the termination of Bordeau’s Brandenburg contract,” the lawsuit states.
Prior to the contract being cancelled, Bordeau planned to purchase scrap metals from the demolition of Hammond being conducted by Brandenburg. Bordeau planned to process and resell the metal on 18 acres off Enterprise Drive in the Floyd County Industrial Park it purchased from the Development Authority of Floyd County for $459,153.35.
However, that property purchase also came with a deed restriction; Bordeau was only allowed to process metals taken from the Plant Hammond demolition.
From the beginning, the plan had always been for the Bordeau operation to be a temporary one. Once the steel from Hammond was processed, the development authority would then repurchase the graded, pad-ready site to market to another industry.
However, shortly after commencing operations, noise from the site prompted nearby residents of The Trail neighborhood to complain that it was unbearable. Several residents approached Floyd County Commissioners as well as McCord multiple times during meetings in January, asking for a remedy to the situation.
The lawsuit states that Floyd County representatives, including McCord, met with Georgia Power representatives on Feb. 1 to discuss Bordeau’s operations.
By Feb. 6. Brandenburg had terminated the Bordeau contract “effectively rendering Bordeau’s metal recycling facility on the property inoperable,” the lawsuit states.
“Given the nature of Bordeau’s business, given the restrictive covenants set forth in the warranty deed, and in light of the termination of the Brandenburg contract, Bordeau was effectively prevented from making any beneficial use of the property after approximately February 6, 2023,” it states.
While operations at the site ceased for a short time, they recommenced in May. The president of the company, Brad Bordeau, contacted the Rome News-Tribune on May 15 to say the company has recently purchased scrap metal and was reopening the site. Also in May, the company sent Floyd County a notice of its intent to sue.
Operations resumed at the facility during the summer, with The Trail residents reporting that the noise was deafening and often took place six days a week. Bordeau has contended that the company’s operations are well within zoning restrictions and they have taken efforts to limit noise.
The deed restriction on the property was central to a letter sent via certified mail on Aug. 24 by the Development Authority of Floyd County to Bordeau.
That letter restated the deed restriction that only allows metals from Plant Hammond to be delivered on the site and requested the company abide by the deed restriction. It also requested the company remove materials, other than ones allowed, from the site.
Closing, the letter signed by development authority Chair Ryan Earnest, stated that if Bordeau is interested in selling the property the authority would market it for sale at no cost.
When contacted Saturday, the company’s president Brad Bordeau declined to comment.