CLINTON, Iowa — Clinton County has filed a lawsuit against the city that bears its name over millions of dollars of unpaid debt, according to a release from the Board of Supervisors.
The suit alleges that the City of Clinton has failed to pay the majority of the debt incurred for the construction of the Lincolnway Railport Project — over $5 million.
In 2010, Clinton County financed $6 million to the City to fund the $10.8 million railroad construction project, as the City was only putting in $4 million generated by a 1995 bond issue and sought help from the County.
According to the suit, the City agreed to pay the $6 million back over a period of ten years — ending in 2020 — but, as of this filing, has only paid less than $800,000.
Clinton County officials say that they have tried for more than a year to resolve the situation without going to court.
"Given the City’s failure to honor its promises or even respond to the County’s offer to resolve this matter, the County was forced to file the lawsuit," the Board of Supervisors' statement says. "Clinton County regrets that it had to take this step, but looks forward to resolving this matter with the City."
Clinton mayor Scott Maddasion later provided the City's response:
"On April 3, 2023, Clinton County filed a lawsuit against the City of Clinton regarding a dispute over the amount of repayment remaining for a bond issued in 2010 for the Lincolnway Rail Park. The City suggested the parties try to resolve the case through voluntary mediation to avoid this step, but unfortunately, the County chose this path.
We are disappointed the County decided to take this step. This project was a joint venture between the County and the City. We are confident a resolution that is fair to the citizens of the City of Clinton will be reached."
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