Supervisors hear court's ruling in Agriprocessors property tax case; decide to move Ludlow dumpsite

by Bob Beach

During its regular meeting Monday, January 23, the Allamakee County Board of Supervisors met in closed session with County Attorney Jill Kistler, County Treasurer Lori Hesse and attorney Wes Huisinga (by telephone) for an update on ongoing litigation over unpaid property taxes with SHF Industries, owner of the AgriStar meat processing facility in Postville. Kistler and Huisinga presented the Board with the United States Bankruptcy Court for the Northern District of Iowa’s ruling on the County’s motion for summary judgement in the case.
SHF Industries, which purchased the Agriprocessors facility in Postville at its bankruptcy sale in 2009, filed a complaint asking the court to declare the purchase to be “free and clear” of over $500,000 in unpaid property taxes. In its motion for summary judgement in the case, the County argued that it was not a party to the bankruptcy sale, as it did not receive notice of the sale. Chief Bankruptcy Judge Thad Collins addressed several complex legal issues in his ruling released January 17, concluding “The Court... has determined that the County’s lien was not extinguished by the order approving sale free and clear. The only issue remaining is the proper remedy. To the extent these arguments affect those issues, they will be taken up at trial.”
The Board also met with Solid Waste Director Dave Mooney, who reported that use of the garbage drop-off service in Ludlow is only utilized by approximately 15 people while calls for a site in Harpers Ferry have continued. He said that other sites have been heavily utilized, especially the site near Waterville. He recommended moving the Ludlow site to Harpers Ferry, which would relieve some of the work load from the Waterville site. Mooney added that he would speak with people who utilize the service in Ludlow to determine what level of service to that area would be sufficient. The Board agreed to move the Ludlow site to Harpers Ferry effective February 8, where a manned truck will be stationed from 3-7 p.m. Wednesdays.
The Board approved the third and final reading of an amendment to the County’s zoning ordinance to change travel trailer parks and commercial campgrounds from a permitted use to a conditional use in agricultural zones. Having received no further public input, the Board passed the ordinance.
Dr. Ken Olson, co-chair of the Robey Memorial Library Capital Campaign, updated the Board on efforts to raise funds for an expansion of the library. He said that approximately $100,000 has been collected in gifts or pledges by 30-35 volunteers. Olson said the $1.4 million project would nearly double the space at the library. Ralph Savoy, who is consulting for the project, said that pledges could be made payable over three years, giving some flexibility to businesses, individuals and foundations that may want to contribute to the project. Savoy said that the City of Waukon plans to contribute $200,000 to $400,000 to the project and that a contribution from the County would make the project eligible for a Vision Iowa CAT grant. Savoy agreed to return in two weeks with a specific funding request.
In other business, the Board discussed the need to appoint three members to the Compensation Commission, which meets as needed to resolve disputes involving eminent domain. The Board approved hiring Larry Blake to a full-time position at the Dorchester Secondary Roads shop and accepted and placed on file the Veterans Affairs quarterly report. The Board also received funding requests from Northeast Iowa Community Action Corporation and from Helping Services of Northeast Iowa.