The Clinton Herald, Clinton, Iowa

Local News

December 13, 2013

Railport changes upcoming for Clinton County land agreement

CLINTON — Changes are anticipated on a joint 28E agreement between the city of Clinton and Clinton County regarding the Lincolnway Railport project.

Clinton City Council members approved a proposal from county officials for an addendum to the joint agreement, and are now waiting for the Clinton County Board of Supervisors to make a final approval on the subject.

The current 28E agreement, created in 2009, is in place to ensure the city repays the county the $6 million that was pledged to develop the park. The agreement states that the county receives one half of the sale proceeds from a sale of property in the industrial park, and the other half goes to the city or the Clinton Regional Development Company at the city’s discretion.

The proposed addendum will define what the term “sales proceeds” refers to in the agreement.

“The determination of sale proceeds was made by the county Board of Supervisors because there was a bit of an ambiguity in the existing agreement between the city and county defining how the sale proceeds should be divided, and exactly what constitutes sale proceeds, more specifically,” legal representative for the city of Clinton John Frey said. “This simply confirms what the county Board of Supervisors did in determining what deductions should be made from sale proceeds, and determining the amount to be split between the city and the county.”

According to the addendum, the county requested that the term “sales proceeds” refer to specific expenses and deductions that will be subtracted from the gross sale proceeds.

Those expenses include abstracting costs, legal expenses, recording fees, property tax prorate, platting expenses, land or easement expenses as part of the sale and any other expense mutually agreed-upon by the county and city prior to, or after a property sale.

With the approval of the addendum, the city will be required to deduct all of those expenses from railport tenant RAIL.ONE, and then split the remaining proceeds with the county. Once sale proceeds from Nevada Rail Materials have been negotiated, the same deductions will take place.

 

 

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