In a holding pattern: Clark County delays decision on airport property

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August 28, 2012

In a holding pattern: Clark County delays decision on airport property

By BRADEN LAMMERS braden.lammers@newsandtribune.com The News and Tribune Tue Aug 28, 2012, 07:30 AM EDT

JEFFERSONVILLE — The Clark County Council postponed a decision on how to pay for a judgment levied against the county for property acquired near the Clark Regional Airport on Monday.

A special meeting was called to help determine how the county would pay Margaret Dreyer more than $850,000 for taking her property located at the end of a proposed runway expansion project. The value of the land the Clark County Board of Aviation Commissioners purchased was disputed and via a jury verdict, and a subsequent appeal that was upheld, the value of the property was deemed to be $865,000 — a portion of which has already been paid to Dreyer.

The amount outstanding that the county still owes Dreyer, including interest and attorney fees as of Aug. 1, totaled $851,098. The judgment continues to accrue interest at a total of $150 per day.

But the county council delayed its decision on how to pay the amount still owed to the former property owner.

“I would recommend ... we move forward with pursuing options listed in this mandamus including consulting with our financial adviser [Dan] Eggermann,” said Clark County Council Attorney Scott Lewis.

He said the county would need to consult with Eggermann to ensure they “preserve certain options.”

Among the options available to the county are paying a judgment with judgment funding bonds or issuing a tax rate attached to the levy.

“Both of those rates, regardless of what procedure you take, would be outside the levy, but inside the [tax] caps,” Lewis said.

A decision on what course of action the council will take has to be made within 45 days, according to an order of mandamus issued by Clark County Circuit Court No. 2 Judge Jerry Jacobi.

The county does have some leeway in how quickly it pays Dreyer back because she has agreed to waive a reversion clause that would allow her to take the property back after one year of the judgment if the amount owed has not been paid. That deadline is Dec. 14.

Aside from bonds or issuing a tax levy, three other options remain on the table for the county.

According to a previous report in the News and Tribune, the air board has applied for grant money through the FAA for a variety of projects, including a request for grant money to pay for a large portion of the Dreyer judgment. If approved, the county’s match for a $1.229 million grant for land acquisition would be $92,230.

Another is an appeal to an action filed by the Clark County Commissioners Attorney Greg Fifer that claimed Dreyer missed the date at which she could file an exception to the original appraisal amount offered. It was previously ruled that Fifer’s objection was filed too late in the process, but he is appealing that decision.

He said the court should have independently inquired whether or not Dreyer filed a timely exception to the appraiser’s report. If the county were to win the appeal, the judgment would revert to the county’s original appraisal amount of $203,605, which Dreyer has already received.

The final option is to seek payment through a malpractice suit filed against Clark County Board of Aviation Commissioners Attorney Jack Vissing over how he handled of the property acquisition.

During the county’s budget sessions earlier in the month Councilman Chuck Moore said he did not want to move forward with a decision until there were changes made to the makeup of the air board.

“I say we don’t do anything until we get them to appoint a new board,” he said in a recording of the public meeting obtained by the News and Tribune. “We’ve got a risk with that board sitting on there as far as I’m concerned.”

Following Monday’s meeting Moore said there have been problems with the board for 51⁄2 years. He added that they have not lived up to what they said they would do and it has taken much longer for them to implement policies offering the fuel flow fees as an example.

Moore added board members could be removed by the commissioners, who appoint the board members, if they have cause.

When asked if he believed the commissioners had cause Moore said, “yes.”

A decision is expected at the council’s next meeting, Sept. 10, unless a special meeting is called.