City removes itself from pending litigation
By
Brandy Chandler-brandychandler@gmail.com
The Hillsboro City Council has voted to withdraw from litigation regarding a claim on an estimated $15,000 the city is owed by a resident who received a loan from the city.
Hillsboro Law Director Fred Beery requested the city go into executive session July 12 during the regular council meeting to discuss litigation. The council met in executive session for less than 10 minutes.
After entering back into regular session, Hillsboro City Council President Lee Koogler said the city had a claim in the case EAC Home Loan Services vs. James S. Farrow.
The city "Extended a loan to Mr. Farrow by virtue of the revolving loan fund. It is my understanding there is about $15,000 still due, however as the case proceeded there is a deficiency in terms of equity on the premisses," Koogler said.
Koogler said EAC Home Loans is the superior lien holder on the property, and an estimated $140,000 is due on the property, which is valued at only around $70,000.
Beery asked council how they wished to proceed in the matter, whether the city should continue to pursue what it is owed or remove its name from the litigation.
"Knowing we are not in a very secure position compared to EAC Homes, this is a situation we can continue to throw money at, but there is also not an estate open or any estate assets to go after," Koogler said. "The city is obviously not in a very good position."
Hillsboro Mayor Dick Zink asked if Beery was sure the loan went through the revolving loan fund, or if it was housing rehab funds. Beery said paperwork just said "city of Hillsboro housing" and it could be through the housing rehab funds.
Council member Dave Shoemaker made a motion that the city remove itself from the litigation, and it was seconded by council member Mary Brown Turner. Council passed the motion 7-0.
In other business, council:
• Heard a reading of an ordinance regarding dangerous properties, again, after Zink voiced concern that the legislation was not properly passed. Council had considered the ordinance for several months and it had gone through some re-writes, particularly in a section regarding a housing inspector and the appeals process if a city declares that a building should be torn down. During a June special meeting, Deputy Hillsboro Law Director Kathryn Hapner had addressed the council on the matter, after which a motion was made to waive the three-reading rule and pass it as an emergency. Zink was concerned that the ordinance was not read prior to the vote.
Beery said that "a little redundancy won't kill us" and recommended that council vote on the matter again. Koogler read the ordinance, in title only, and council voted to waive the three-reading rule, and passed the ordinance 7-0.
• Council voted to allow the Highland County Historical Society to utilize the bay portion on the old Hillsboro fire station during a community antique sale. Permission was granted on the contingency that the city is able to hold an auction of items that are currently stored in the space, prior to the sale date.
Mary Todd Hardeman, of the society, had spoken to council's property maintenance and restoration committee prior to the council meeting. She also requested that on the day of the sale, which is being coordinated with the Hillsboro Uptown Business Association, that the city waive all yard sale permits and fees. Council discussed the matter, and approved the waiver of the fees for one day only.
• Council heard the first reading of a resolution to enter into a contract with Leary Construction Co. for the painting of the water tower on Tower Drive, at the cost of $33,880. Hillsboro Safety and Service Director Ralph Holt said the job had been put out for bids, with two companies responding. The other bid was an estimated $138,000, he said. Council voted to waive the three-reading rule and passed the resolution 7-0.
• Heard a report from the street and safety committee regarding the street address numbers for Cedarwood apartments. The committee recommended the city file recommendation with the United States Postal Service, Highland County Auditor, and American Electric Power to continue with the existing addresses. Council voted 7-0 to accept the report.
The Hillsboro City Council has voted to withdraw from litigation regarding a claim on an estimated $15,000 the city is owed by a resident who received a loan from the city.
Hillsboro Law Director Fred Beery requested the city go into executive session July 12 during the regular council meeting to discuss litigation. The council met in executive session for less than 10 minutes.
After entering back into regular session, Hillsboro City Council President Lee Koogler said the city had a claim in the case EAC Home Loan Services vs. James S. Farrow.
The city "Extended a loan to Mr. Farrow by virtue of the revolving loan fund. It is my understanding there is about $15,000 still due, however as the case proceeded there is a deficiency in terms of equity on the premisses," Koogler said.
Koogler said EAC Home Loans is the superior lien holder on the property, and an estimated $140,000 is due on the property, which is valued at only around $70,000.
Beery asked council how they wished to proceed in the matter, whether the city should continue to pursue what it is owed or remove its name from the litigation.
"Knowing we are not in a very secure position compared to EAC Homes, this is a situation we can continue to throw money at, but there is also not an estate open or any estate assets to go after," Koogler said. "The city is obviously not in a very good position."
Hillsboro Mayor Dick Zink asked if Beery was sure the loan went through the revolving loan fund, or if it was housing rehab funds. Beery said paperwork just said "city of Hillsboro housing" and it could be through the housing rehab funds.
Council member Dave Shoemaker made a motion that the city remove itself from the litigation, and it was seconded by council member Mary Brown Turner. Council passed the motion 7-0.
In other business, council:
• Heard a reading of an ordinance regarding dangerous properties, again, after Zink voiced concern that the legislation was not properly passed. Council had considered the ordinance for several months and it had gone through some re-writes, particularly in a section regarding a housing inspector and the appeals process if a city declares that a building should be torn down. During a June special meeting, Deputy Hillsboro Law Director Kathryn Hapner had addressed the council on the matter, after which a motion was made to waive the three-reading rule and pass it as an emergency. Zink was concerned that the ordinance was not read prior to the vote.
Beery said that "a little redundancy won't kill us" and recommended that council vote on the matter again. Koogler read the ordinance, in title only, and council voted to waive the three-reading rule, and passed the ordinance 7-0.
• Council voted to allow the Highland County Historical Society to utilize the bay portion on the old Hillsboro fire station during a community antique sale. Permission was granted on the contingency that the city is able to hold an auction of items that are currently stored in the space, prior to the sale date.
Mary Todd Hardeman, of the society, had spoken to council's property maintenance and restoration committee prior to the council meeting. She also requested that on the day of the sale, which is being coordinated with the Hillsboro Uptown Business Association, that the city waive all yard sale permits and fees. Council discussed the matter, and approved the waiver of the fees for one day only.
• Council heard the first reading of a resolution to enter into a contract with Leary Construction Co. for the painting of the water tower on Tower Drive, at the cost of $33,880. Hillsboro Safety and Service Director Ralph Holt said the job had been put out for bids, with two companies responding. The other bid was an estimated $138,000, he said. Council voted to waive the three-reading rule and passed the resolution 7-0.
• Heard a report from the street and safety committee regarding the street address numbers for Cedarwood apartments. The committee recommended the city file recommendation with the United States Postal Service, Highland County Auditor, and American Electric Power to continue with the existing addresses. Council voted 7-0 to accept the report.
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