Published: December 30, 2005 10:59 am      

Court battle begins in Ashford case today

CLINTON — A Clinton County District Court judge will hear arguments at 2 p.m. today from a Clinton businessman on why a property tax abatement for Ashford University should be stopped dead in its tracks.

David Jindrich, owner of Jin-Pic Management, filed a petition for a writ of mandamus and injunction on Tuesday against the city of Clinton, seeking to halt the creation of a tax increment financing district for Ashford University. Jindrich says creating the TIF district would let a $7 million corporation get out of paying taxes and allow the city to avoid getting public approval of a bond referendum.

“It’s a welfare program for large corporations,” Jindrich said. “In essence, they have a blank check to operate without having the overhead small businesses have.”

He said he is opposed to Ashford getting the tax rebate because it would mean less revenue going to the city’s general fund and therefore could increase local property taxes.

Ashford University President James Chitwood asked the City Council to create an urban renewal area, including Ashford’s campus, in late November. He told the council the rebate should be allowed because it would mean an increase in jobs, education programs and revenue. On Thursday, Chitwood said the injunction hearing was an issue between the plaintiff and the city and that he would attend if asked to by city officials to answer questions or offer comments. He said creating a TIF district would be beneficial to everyone involved.

“It’s a complete win-win,” Chitwood said. “This plan is moving forward. We are coming through with what we said we would.” He said he has been encouraged lately by the many people who see the big picture and have enthusiasm for the plan.

“This will be good for every small business in Clinton,” Chitwood said.

The university campus was under a non-profit college status when it was operated by the Sisters of St. Francis. Following the sale of the campus earlier this year, the college lost the tax exemption. A representative of the city assessor’s office placed the assessed value of Ashford University at $7,393,300. Without the TIF district, property taxes for the campus would come due next fall with an estimated tax of roughly $300,000.

Retiring City Attorney Bruce Johansen said if an injunction is granted, it could halt negotiations on a development agreement between the city and Ashford University officials. Newly appointed City Attorney Matt Brisch will represent the city at the hearing.