County officials not ready to OK railport plan

County attorney says there are problems with 28E agreement

By Samantha Pidde

CLINTON — Language in the proposed railport 28E agreement between the city of Clinton and Clinton County sparked discussion and could threaten the upcoming deadline for $2 million in stimulus money.

The Clinton County Board of Supervisors held a public meeting on Tuesday evening to discuss the 28E agreement that already has been approved by the Clinton City Council.

The meeting, held in the cafeteria of the County Administration Building, started off with CRDC President Steve Ames giving an outline of the railport project and answering questions about the project as a whole.

Ames outlined the various phases of the project. He said the project could attract a variety of industries to the area.

“We do have an opportunity here, and it’s exciting,” said Ames.

State Sen. Roger Stewart, D-Preston, also offered his support for the project.

“I want to commend the city and the county to move this project this far,” Stewart said.

“And I think you should be congratulated for doing that, finding a way.”

He said there are very few railports in Iowa.

“You are going to put yourself on the map,” said Stewart.

After members of the public were allowed to make any comments, the discussion moved to the meeting’s purpose, the 28E agreement. At this point, County Supervisor Jill Davisson detailed a list of questions and problems with the agreement.

The agreement states that the county would issue bonds for $6.2 million to fund the portion of the railport project that falls under the Urban Renewal area. The city would repay the county through proceeds of sales in the industrial area of the railport. The total of the money would be repaid within 10 years.

“And I think that everyone needs to understand that’s in this room, that the Board of Supervisors, with only three individuals on the board, has not had the opportunity as a board to discuss what’s in the 28E agreement. This is our first opportunity. And we were waiting because it has been in the city’s hands and as of Christmas Day, I guess, we will have had it for two weeks,” said Davisson.

Davisson’s problems primarily were concerning specific details not provided in the agreement. She wanted clarification on just who would be managing the project, whether any interest would be paid on the loan, how the county would manage the money once it was repaid and how the county would fund the debt. She also questioned if — based on the document’s language — it is technically recognized as a 28E agreement.

Supervisor Chairman Dennis Starling said he has no problem with the language of the agreement. He said when the agreement was created, it was made more general so as not to tie the city’s hands.

“Because the city is the one that’s going to have to make this thing work. It’s not the Board of Supervisors,” said Starling.

“I felt it was my role to look at what the Iowa Code requires in order to have a proper 28E agreement. And I think, I’ve been taught over the years from very good people that have worked with me in Des Moines on the issue of a 28E agreement, it’s the detail. The devil’s in the detail,” said County Attorney Mike Wolf, who was not involved in the creation of the 28E agreement.

He presented the board with a list of items in the agreement that he says could present problems.

He said one problem is that the agreement does not specifically designate an administrator or entity responsible for the budget and the administration of the project and what the expectations of this entity are.

He pointed out the agreement offers no provisions for liability. No methods for termination or modification of the agreement are addressed, he said. Wolf also said not enough details exist on what type of powers and duties each party has.

“There are these risks and pitfalls, I think it is my duty to point out to you that’s incumbent with the details of this 28E agreement,” said Wolf.

He said he felt he could not recommend this agreement as it stands to the board.

“I really feel like the draft is just that — it’s a draft,” said Davisson. “I certainly don’t want my legacy to be that I didn’t leave a document that whoever sits in this chair can live with.”

Ames said they had tried to keep the agreement simple, but had perhaps over simplified it. He said he felt all of Wolf’s concerns could be addressed. His concern was that “time is of the essence.” The deadline for the $2 million in stimulus funds is approaching in January 2010.

“If we don’t act and move forward, that $2 million is going to be given up,” said Ames.

Ed O’Neill, of Clinton, said he did not feel the county was facing any risk, as the agreement guaranteed the city would pay the money back to the county.

He said he felt making the changes and getting both the city and the council to officially vote on them could take more time than they have. He suggested the county approve the agreement now and modify it at a later date if necessary. Wolf and Davisson pointed out that one of the problems with the document was the lack of details on a process to modify the agreement. O’Neill said he feels the agreement is a good one and thinks the county should approve it rather than risk losing the $2 million.

“I’m taking issue with this, because the county, since August, has been waiting for the document to come back. So now it’s the county’s problem to get it passed. And that’s where I’m taking issue with this whole thing. Because it’s not my problem that it sat some place since August and didn’t get to my desk until a week ago Monday. And I’m here, the week of Christmas on a special meeting, because I felt it was important to do it. And I guess, I take issue with the fact that now, ‘By God, the county, you better do it,’” said Davisson.

Davisson said she will not rush this agreement through without ensuring it is done correctly. She said she feels they need to listen to Wolf’s opinions since he is the county attorney.

Ames told the board he is willing to work to facilitate a speedy resolution to the matter. He suggested they all meet as soon as possible to get the changes made.

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