9/27/1994 - Laserfiche WebLink

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PIPER AIRCRAKr BANKRUPTCY Property Appraiser David Nolte advised the Board regarding his discussions on hiring an additional attorney to handle the Piper Aircraft bankruptcy matter. Mr. Nolte advised that additional fees will have to be paid out of his budget which requires an amendment* to the budget. He believed that the fee to defend this action will be in the area of $20,000. Commissioner Adams inquired how the figures were computed and Mr. Nolte advised that, under the applicable statute, the Mosquito Control District, the Hospital District, and other districts pay a portion and the County pays approximately 82%. The School Board does not contribute because years ago the Legislature decided that education should not participate in�these actions. Commissioner Bird asked if the problem could be worked out between the parties, and Appraiser Nolte replied that he will do everything he can to settle the matter. Tax Collector Karl Zimmerman related that his office has been represented by a bankruptcy attorney for this matter since 1991. About 6 months ago, he was told by Piper's attorney that they were going to court to challenge the assessments. Whenever the Tax Collector is challenged relative to assessments, the Property Appraiser is noticed and made a party, as well as the Department of Revenue. The Board has been supplied with copies of the testimony and the judge's decision to allow Piper to make a presentation in court. Piper has approval to spend up to $74,000 for this presentation to challenge the assessments in addition to the $25,000 already spent. A pre -hearing is scheduled for November 7, 1994. Both the Tax Collector and the Property Appraiser will defend the assessments, interest and penalties which are part of the lawsuit. Mr. Zimmerman advised that the pre-petition certificates as of September, 1994, are $1,185,644.73 and the post- petition uncollected taxes for 1990 through 1993 intangible and 1991 through 1993 real estate, for which no certificates have been sold, are $2,353,580.30. The first figure was paid to the Tax Collector because the County sold tax certificates. If the Court reduces the liability on the certificates, the certificate holders must be made whole. The certificates have a 7 year life and they do not age while in bankruptcy. The second figure is uncollected taxes which have been billed and never collected and will be paid by taxpayers in the community if not paid by Piper. SEPTEMBER 27, 1994 25A 4