The Clinton Herald, Clinton, Iowa

Local News

August 20, 2013

City, county unsure how to split sale proceeds

Entities unclear as to what term 'sale proceeds' means

CLINTON — A decision must still be made on how much money Clinton County sees from the almost $1.1 million sale of railport property to RAIL.ONE.

“We’re here, really wanting to pay you. We just don’t know what to write the check for,” Clinton Mayor Mark Vulich said Monday.

The county loaned the city $6 million for the project, which must be payed back by Dec. 31, 2018. As part of the 28E agreement, the two entities will evenly split “sale proceeds” from each company buying land in the rail park.

Representatives of the city and the Clinton Regional Development Corp. attended the Clinton County Board of Supervisors meeting Monday to discuss exactly what the term “sale proceeds” means. John Frey Jr., attorney for the project, pointed out that if the document had said “purchase price,” there would be no discussion. However, it did not, leaving question on if the proceeds mentioned are based on the net or gross amounts.

Former Supervisor Dennis Starling attended the meeting to ensure the board did not modify the 28E agreement that he helped create. He said he felt the city was there to get the county and the taxpayers to pay for development into the industrial park, which was not the purpose of the agreement.

“Any modification of the 28E agreement would not be in the best fiscal interest of the county or the county taxpayers,” Starling said.

Frey pointed out that they are not trying to modify the agreement, only interpret the existing language. He explained that to him “sales proceeds” are what is left in someone’s pocket after necessary expenses.

Vulich and Frey explained that many expenditures went into securing the deal with RAIL.ONE. This included purchase of land, attorney fees, constructing a road, engineering and a water and sewer system. With these expenses the proceeds of the sale are closer to $700,000.

Supervisor Brian Schmidt felt that the county’s cut could pay for the purchase of the land, attorney fees and other sales expenses. He did not think it should be used to pay for development costs, such as the water system and roads.

Vulich explained that negotiation with RAIL.ONE was difficult and the company was unwilling to pay the $42,000 per acre with these amenities unavailable, offering $30,000 per acre instead. Instead of selling at a low price and setting a precedent for future sales, the city offered the company a credit for certain utilities, at the higher sale price. He emphasized that this means that even though the sale price is more than $1.1 million, the city will not see that much.

“It’s an ambitious undertaking which is under way, but still is going to require a lot of work,” he said.

County Attorney Mike Wolf told the board that while not a clear-cut issue, he felt the city had a good argument that these expenses were necessary.

“A partnership like this requires a lot of trust,” Wolf said.

Ultimately, the county has the final say. The board will consider the information and come back with a decision. Frey said they would have to accept whatever that is.

“This is a venture where the city and the county are working together and it’s coming together and we’re getting results. We want you to be happy and we want to move forward in a way that’s mutually beneficial,” Frey said.

1
Text Only
Local News
  • Dutch Days grand marshals Fulton couple honored as grand marshals

    Bob and Trudy Feldt have been dedicated to the city of Fulton for decades. Whether it be Trudy's 27-year commitment to teaching the children of the community at the River Bend School District, Bob's 33-year career with the Fulton-born c

    April 17, 2014 1 Photo

  • Fire alarm evacuation at Eagle Heights

    Students of Eagle Heights Elementary School were evacuated Thursday afternoon after staff smelled something being emitted in the first-grade hallway and main office areas.

    According to a press release from the Clinton Community School District, staff noticed the smell at approximately 1:10 p.m. It was then determined the fire department should be notified, and the fire alarm was pulled. The building was evacuated quickly and the Clinton Fire Department responded immediately.

    April 17, 2014

  • JUST IN: McColley found not guilty of sex abuse

    A Clinton County jury today found Russell McColley, 39, not guilty of second-degree sexual abuse.

    McColley was accused of abusing a 3-year-old girl on July 29, 2013. If convicted of the class B felony, he could have faced as much as 25 years in prison.

    April 17, 2014

  • Court denies man's appeal in robbery CLINTON -- The Iowa Court of Appeals has upheld a conviction of a man who robbed a Clinton pawn shop in 2012. Darrell L. Thomas recently appealed his first-degree robbery conviction to the Iowa Court of Appeals. The court released its decision Wednes

    April 17, 2014

  • CCDA will match funds to secure van

    CLINTON -- One local non-profit organization soon will benefit from a donation from the Clinton County Development Association but it's not their typical form of grant giving. During a meeting Wednesday, CCDA members discussed the possibility of matc

    April 17, 2014

  • Jury deliberating in sex abuse case CLINTON -- Jurors were set to return to court this morning to continue deliberating on the trial of a man accused of sexually abusing a 3-year-old girl. The jury deliberated for more than two hours on the Russell McColley case Wednesday afternoon, be

    April 17, 2014

  • City considers upsizing storm sewer capacity CAMANCHE -- Residential development is a key component to the fortitude of Camanche, according to city leaders so they are taking the steps necessary to keep it an appealing location for future investors. To do so, those leaders are looking to up siz

    April 16, 2014

  • Schools will continue sports-sharing agreements CLINTON -- Students attending Camanche, Central DeWitt, Northeast and Prince of Peace schools still will be able to participate in the athletic programs offered in the Clinton School District. At a meeting Monday, Clinton School Board members approve

    April 16, 2014

  • Sex abuse trial continues CLINTON -- Assistant County Attorney Ross Barlow began his case Tuesday against a man charged with sexual abuse of a 3-year-old girl. Russell McColley, 39, is charged with second-degree sexual abuse, a class B felony carrying as much as 25 years in

    April 16, 2014

  • Cattail Slough closed due to high water FULTON, Ill. -- The U.S. Army Corps of Engineers Mississippi River Project announces that Cattail Slough recreation area south of Fulton has been closed due to high water levels. The recreation area will remain closed until it has dried out sufficie

    April 16, 2014

Facebook
Clinton
Camanche
Fulton
Clinton Herald photos


Browse, buy and submit pictures with our photo site.