Postville, IA - Agri Star, County Prepare Legal Battle Over Delinquent Property Taxes Left By Agriprocessors |
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News Source: The Gazette
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Postville, IA - The issue of who pays the delinquent property taxes left by Agriprocessors apparently wasn’t addressed in the company’s bankruptcy, leaving Allamakee County and the new owner to argue over a $577,872.73 bill.
Allamakee County said in a statement this week that the kosher meat processing plant property in Postville is listed to be sold at a tax sale June 21.
Shalom Jacob, a New York-based attorney for current owner SHF Industries, said through a spokeswoman that the company never received the tax bill and wasn’t notified of the county’s attempt to collect until May.
The bills had been sent to Agriprocessors and a related company, Neville Properties, Jacob said.
Montreal businessman Hershey Friedman’s SHF Industries acquired the plant out of the bankruptcy liquidation of Agriprocessors in August. It was part of a package of assets the company bought free and clear of liens and encumbrances, Jacob said.
An attorney hired to help Allamakee County collect the taxes said the county never was notified by the bankruptcy court of any plans to sell the plant free and clear of liens.
‘If the county had any idea they were trying to sell the real estate free and clear of encumbrances, we would have filed an objection,’ said attorney Wesley Huisinga of Shuttleworth & Ingersolll PLC, Cedar Rapids, representing the county.
Huisinga said the senior tax lien against the property ‘follows the real estate,’ so that the current owner of the real estate is responsible for satisfying the tax obligation.
SHF bought Agriprocessors by paying a St.
Louis-based lender to satisfy its lien against the Agriprocessors property. No cash was paid to satisfy the many other creditors, and so the bankruptcy trustee did not have funds to settle the property taxes owed in the sale.
The situation appears to have the making of a lawsuit. Allamakee County says it hired Huisinga in part to deal with the threat of an injunction by SHF Industries to block the June 21 sheriff’s sale.
The county and SHF had been in talks about the tax matter through their attorneys before the county issued a statement Wednesday, inviting investors to bid on the plant assets at the tax sale and calling on Agri Star to pay the taxes.
‘It is our position that we are not responsible for any unpaid taxes that were accrued under the previous owners,’ Jacob said. He said that since SHF purchased the plant, Friedman and his team have made significant investments on modernization and upgrades, and increased employment to 500.
If a bidder acquires the tax certificate for the plant real estate at the county’s tax sale, SHF Industries still would be able to redeem the property within a specific time frame by paying taxes, interest and penalties.
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Read Comments (38) — Post Yours »
2
Jun 11, 2010 at 01:30 PM Kogan Says:Report as Inappropriate
Here we go again.
4
Jun 11, 2010 at 01:37 PM Anonymous Says:Report as Inappropriate
Unreal how they just keep comin & looking for every little stupid thing that can make more problems
6
Jun 11, 2010 at 01:44 PM Anonymous Says:Report as Inappropriate
It seems the begining of reality. the sharks are out there.
7
Jun 11, 2010 at 01:47 PM Anonymous Says:Report as Inappropriate
I wonder what these poor midwesterner's think about Yidden after their first experience with them.
8
Jun 11, 2010 at 01:47 PM Anonymous Says:Report as Inappropriate
They'll no doubtably blame the Jews.
9
Jun 11, 2010 at 01:51 PM Groisa Mol Says:Report as Inappropriate
when will the county/state realize all the employment that is being created here. this place is going just fine, and here they come and start making tzores... This must be PETA or one of these troublrmaker Chevra !!!! ADD MOSAI ??????????????
10
Jun 11, 2010 at 01:52 PM Yossi Says:Report as Inappropriate
I am sure that Mr. Friedman was represented with good council before closing on this property with a free and clear title..Someone here messed up,either the County or the closing title company...Let the attorneys battle this and our comments here wont pay the bill anyhow...good shabbos
11
Jun 11, 2010 at 02:03 PM its all about the .73 Says:Report as Inappropriate
cute that they have a count to the cent and wont give up even that...
12
Jun 11, 2010 at 02:19 PM Anonymous Says:Report as Inappropriate
Let them dig dipper in hole
13
Jun 11, 2010 at 02:19 PM Property Tax worker Says:Report as Inappropriate
I'm not a lawyer, but Real Estate Taxes constitute a first lien on property & must be paid. If the court sold Agri-Star SHF Industries the property, free & clear of liens,
then Agri-Star SHF should counter sue the court & the lawyer(s) that sold them the property for a 'mekach taus'.
14
Jun 11, 2010 at 02:20 PM Um, okay Says:Report as Inappropriate
“ Unreal how they just keep comin & looking for every little stupid thing that can make more problems ”
If it's such a "stupid little thing" how about you pay the $577,000 and we'll call it a day?
15
Jun 11, 2010 at 02:20 PM You dont think do you? Says:Report as Inappropriate
“ Unreal how they just keep comin & looking for every little stupid thing that can make more problems ”
Would you like to pay $577,872.73? Why should anyone pay his bills?!
16
Jun 11, 2010 at 02:24 PM Loshon Hora Says:Report as Inappropriate
They are going after shechita, don't you get it. I can't remember who [I think the maharal miprag says] that when ever the umois go against us they always start with shechita.
17
Jun 11, 2010 at 02:28 PM joey Says:Report as Inappropriate
#4 - every stupid thing????? 500k!
18
Jun 11, 2010 at 02:30 PM Anonymous Says:Report as Inappropriate
The author of this article didn't do his homework. The bankruptcy order clearly said that the sale was free and clear. The county can go after Agriprocessors if it so wishes, though it recognizes that would be a waste of time.
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Jun 11, 2010 at 02:53 PM Dave Says:Report as Inappropriate
This seems like it's a pretty straightforward legal question.
Either the tax lien is valid, or it is not. If it is valid, then the courts will enforce it. If it is not, they will dismiss it.
20
Jun 11, 2010 at 02:54 PM insider Says:Report as Inappropriate
This is insane. Rubashkin, as well as Friedman, should go to a Soth American Country, Brazil or Argentina would be fine, and set up a large glatt-kosher plant there. The locals would kiss their fee in appreciation for the employment. The local municipality would hold a parade every year to honor the glatt-kosher plant. The CEO of the plant wouldeasily be elected as Mayor. Who needs all of the insanity visited upon Rubashkin for just trying to do business. Mr. Friedman, sell the plant and let the local Postville ingrates enjoy their new-found poverty.
21
Jun 11, 2010 at 03:43 PM awacs Says:Report as Inappropriate
My brother, an atty who has done BK cases, writes:
"you look first to the covenants and warranties. since it came out of bankruptcy,
the new owner would have to reaffirm their debt once the purchase is closed. I
see this as a winner for SHF."
22
Jun 11, 2010 at 04:26 PM Anonymous Says:Report as Inappropriate
“ I am sure that Mr. Friedman was represented with good council before closing on this property with a free and clear title..Someone here messed up,either the County or the closing title company...Let the attorneys battle this and our comments here wont pay the bill anyhow...good shabbos ”
Its purchesed from bankruptcy court, they knew there is outstanding r/e taxes
23
Jun 11, 2010 at 04:32 PM Anonymous Says:Report as Inappropriate
If the tax liens were senior to the bank's lien, then the bankruptcy court's sale might well have not affected the priority status of the tax liens, in which case the cuirrent property owner would be on the hook, with maybe c claim against the bank for contribution. I ftax lien was senior, wjy wasn't it paid off earlier? Mayb iowa has a law that says tax liens are always senior to other liens or survive any transfer.
24
Jun 11, 2010 at 04:50 PM Anonymous Says:Report as Inappropriate
The county is absolutely wrong, and is violating not only civil law but also criminal.
The bankruptcy order states free and clear of all liens. Attmepting to collect on the taxes despite that Order is a criminal act. The proper method would be to make a motion to vacate the Order, or a certain part of it. Not simply ignore the order and hold a sale.
Where are the Iowan federal prosecutors when you need them? Those guys are a bunch of scumbag anti semites and they should rot in hell. Lying to a bank = Not Ok....... Spitting in the face of a Federal Court Order = no problem.
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Jun 11, 2010 at 04:50 PM hear nur Says:Report as Inappropriate
The story about the tax is this this: When the Rubashkin's brought the plant it was located outside of the county.
Eventually the mayor (don't remember his name)wanted to change the zoning to be able to procure taxes from Agri.
Rubashkin then threatened to move the company. The mayor told him "just make sure the last one out doesn't get hurt by the slamming door!"
Not sure what happened next, but I'm sure this is part of the evil politics that brought Rubashkin to his current situation.
26
Jun 11, 2010 at 05:21 PM bigwheeel Says:Report as Inappropriate
“ I wonder what these poor midwesterner's think about Yidden after their first experience with them. ”
The Midwesterners (Capitalized.) are not poor. You are. I'm sure you would --had you been there-- have agonized on the train to Auschwitz, what the nazis (yms"h) would think about your shoes not being polished and your tie not being straight.
27
Jun 11, 2010 at 05:43 PM Anonymous Says:Report as Inappropriate
Please stop with all the paranoia. This is not about going after jews or shechita. County governments are completely strapped. They have a huge unpaid tax bill. If there is a lawyer telling the County that the bankruptcy proceeding messed up and they have a legitimate claim, the county is going to try to collect whether its a kosher meat plant, a bowling alley or a yo yo factory.
28
Jun 11, 2010 at 06:30 PM Anonymous Says:Report as Inappropriate
“ They are going after shechita, don't you get it. I can't remember who [I think the maharal miprag says] that when ever the umois go against us they always start with shechita. ”
this has nothing at all to do with "going after shechita" and everything to do with property taxes, plain and simple. if Hershy would have approached a bank for a mortgage loan, it would have shown up immedietely. As he did not, it never showed up. He should have considered the fact that under circumstances, there may be back taxes owed. the county is in no way eager to let the taxes be forgiven, because if it goes to auction, someone will surely pay it, and have a lien against the property.
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Jun 12, 2010 at 10:58 PM Anonymous Says:Report as Inappropriate
This is exactly what section 363 of the Bankruptcy Code is meant to take care of - it takes all liens against the property and puts them against the proceeds realized in a sale of the property.
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Jun 12, 2010 at 11:19 PM Anonymous Says:Report as Inappropriate
“ This is insane. Rubashkin, as well as Friedman, should go to a Soth American Country, Brazil or Argentina would be fine, and set up a large glatt-kosher plant there. The locals would kiss their fee in appreciation for the employment. The local municipality would hold a parade every year to honor the glatt-kosher plant. The CEO of the plant wouldeasily be elected as Mayor. Who needs all of the insanity visited upon Rubashkin for just trying to do business. Mr. Friedman, sell the plant and let the local Postville ingrates enjoy their new-found poverty. ”
This is typical talk from a yid with an elitist attitute. That is why Rubashkin got into trouble in the first place. I also like #8 who thinks that everything that goes wrong in the world is blamed on the Jews
31
Jun 13, 2010 at 12:22 AM Anonymous Says:Report as Inappropriate
It is interesting to see how many experts there are in law and who are giving advice about Iowa State Bankruptcy Law who can't even write in simple English, without obvious spelling mistakes.
Didn't you all have to graduate high school, or at least elementary school before you could go to law school?
32
Jun 13, 2010 at 02:53 AM Let it go Says:Report as Inappropriate
Ok who is going to bid 500k for the lean? Owners should have someone by the auction.
33
Jun 13, 2010 at 08:19 AM hear nur Says:Report as Inappropriate
“ It is interesting to see how many experts there are in law and who are giving advice about Iowa State Bankruptcy Law who can't even write in simple English, without obvious spelling mistakes.
Didn't you all have to graduate high school, or at least elementary school before you could go to law school? ”
Why does one need a secular education when it comes to the realities of life? Didn't Helen Thomas with her warped view have a secular education?
If your argument revolves only around the technical aspect of other people's English and can't counter with a decent argument then you are not much of a chuchem yourself.
34
Jun 13, 2010 at 08:41 AM Anonymous Says:Report as Inappropriate
“ The story about the tax is this this: When the Rubashkin's brought the plant it was located outside of the county.
Eventually the mayor (don't remember his name)wanted to change the zoning to be able to procure taxes from Agri.
Rubashkin then threatened to move the company. The mayor told him "just make sure the last one out doesn't get hurt by the slamming door!"
Not sure what happened next, but I'm sure this is part of the evil politics that brought Rubashkin to his current situation. ”
THis is why we should not believe anything off the internet. THis is a lie, through and through. I expect no less from Rubashkin supporters.
A theif is a theif always. Doesnt make a difference if it was the 'mayor' of the town or a head of the company who 'threatened' to move the company'. We already have seen and he has tlod us in so many words tat he could not manage himself out of a paper bag.
35
Jun 13, 2010 at 10:41 AM Charlie Hall Says:Report as Inappropriate
“ I'm not a lawyer, but Real Estate Taxes constitute a first lien on property & must be paid. If the court sold Agri-Star SHF Industries the property, free & clear of liens,
then Agri-Star SHF should counter sue the court & the lawyer(s) that sold them the property for a 'mekach taus'. ”
This is correct. And in some states, there is no legal provision for EVER forgiving property taxes.
And in any case, there is a halachic chiyuv for the owners of the plant to pay the taxes owed.
36
Jun 13, 2010 at 10:47 AM Anonymous Says:Report as Inappropriate
“ Ok who is going to bid 500k for the lean? Owners should have someone by the auction. ”
You are confusing the real estate with the brisket. no one has to pay $500K for the "lean".
37
Jun 13, 2010 at 10:57 AM illiterates Says:Report as Inappropriate
“ Why does one need a secular education when it comes to the realities of life? Didn't Helen Thomas with her warped view have a secular education?
If your argument revolves only around the technical aspect of other people's English and can't counter with a decent argument then you are not much of a chuchem yourself. ”
One needs a secular education when it comes to the realities of life because if you can't express yourself, no one will respect or take you seriously. And Helen Thomas, with all her warped ideas, will still write better than anyone in your family now or ever will.
And you answer your own question. "Can't counter with a decent argument"? If you believe that a person who can't spell at even a second-grade level knows ANYTHING about bankruptcy law in another state, or any law, for that matter, you are a bigger idiot than I already think you are.
It appears that a complete inability to read or write in English is considered a badge of respect in the frum community, and you, unfortunately, are living proof of it.
By the way, if a real lawyer submitted anything to any court in the country with english like this writer's comment, he would be laughed out of the courthouse.
And if you are so pro-illiteracy, I feel sorry for your children, when they grow up they will be cleaning the hopmes and offices of my children, and throwing out their garbage for a living.
Idiot!
38
Jun 13, 2010 at 02:21 PM hear nur Says:Report as Inappropriate
"I feel sorry for your children, when they grow up they will be cleaning the hopmes and offices of my children, and throwing out their garbage for a living. "
Thank you for feeling sorry for my children who you will predict will clean the "hopmes" of your children.
"By the way, if a real lawyer submitted anything to any court in the country with english like this writer's comment, he would be laughed out of the courthouse". I just want to point out that the word "English" needs to be capitalized.
With all your inteIligent predictions I think we should nominate you as VIN's official prophet.
39
Jun 13, 2010 at 04:21 PM Boro Park... Says:Report as Inappropriate
Dear Hershy Friedman. I wish that you just drop postville. they dont deserve you your trying to rebuild the plant and there puting pressure on you from the back taxes. dont you deserve a break. ?... Let them all drop death.
40
Jun 13, 2010 at 07:37 PM Jewish Girl Says:Report as Inappropriate
So the tally of the govt raid continues to grow and grow!
Time to hold the govt accountable for the destruction and devastation that they wrought on Postville.
41
Jun 14, 2010 at 11:04 AM Anonymous Says:Report as Inappropriate
Yes, why don't you sue the government for this? There's a lot of money to be had.
Since you are the only one who thinks this is a winning lawsuit, why not file it and make the money yourself? You seem very knowledgeable about law.