(From the Newton County Commission)
On Friday, October 27, 2023, The Governing Bodies of the City of Neosho, Missouri (City) and Newton County, Missouri (County), parties to Neosho TIF litigation filed by the City, both passed resolutions authorizing settlement of the litigation involving the Neosho Tax Increment Financing, or TIF, plan.
Under the Settlement Agreement, the County will pay to the City $370,631.32 to satisfy all claims. This amount is significantly less than the City’s alleged amount due from the County on June 2, 2023, of $917,948.42.
The City sued the County and two of its elected officials in October 2021.
In the suit, the City claimed among other things that the County had not made payments, called Economic Activity Taxes or EATS for short, as required under the law.
Before the lawsuit was filed, in July 2021 and again in September 2021, the County said it would budget amounts due, provided the City documented the amounts it claimed were due. The City did not provide documentation for amounts due or identify the precise amount it claimed was due before the lawsuit was filed.
The County also communicated to the City before the lawsuit was filed that the County believed some years earlier, in or around 2016, that the TIF would be terminated and that there was a surplus of TIF funds required to pay off infrastructure improvement debt.
So, the County stopped EATS payments.
It turns out that, at least based on discovery undertaken during the lawsuit in2023, the City had not made its share of EATS payments, either, and had been operating with an understanding like the County’s understanding, that is, that the TIF would be terminated in or around 2016.
At some point years later, the City changed direction on the TIF, unbeknownst to the County until a general demand was made by the City in 2021.The County on behalf of its taxpayers wished to avoid the costs and uncertainties of further litigation as part of the resolution of the pending lawsuit.
6 comments:
How much did the attorneys make after these two PUBLIC ENTITIES squabbled for a year just to exchange $370,000? The outside counsels made over $1,000,000 of OUR DOLLARS because the elected officials couldn’t act like adults.
So between the three lawsuits is it true the county commissioners have spent over $500,000 of taxpayer money on attorney fees? 1. Suing County office holders over computer security. 2. A Judge for the historic courtroom use. 3. Now the City of Neosho.
Who's on First, What's on Second, I Don't Know is on Third.
What a comedy of errors.
Good thing no one is getting paid to get this stuff right.
7:08 The county treasurer and auditor were sued by Neosho. Rumor in town is, during all of this crap the treasurer's attorney also found ....pause.... a check written by the treasurer for 340+ thousand to the city that should not have been. Hummm...
The county commissioners were sued by the city. Not the treasurer or the auditor. Rumor around town is the state attorney generals office told them to get this and the courtroom settled.
In time all will be revealed.
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