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Two Claims Left to Pay by Mt. Union

Posted: Saturday, January 13th, 2018 at 6:24 am
Author: KCII News - Sam McIntosh

The unincorporated community of Mt. Union has to pay two remaining claims.

The Iowa City Development Board decided Wednesday that $28,817.51 must be paid to Iowa State Bank, which is the amount left on the Mt. Union Community Building mortgage including about $7,000 in interest and attorney fees. The claim will be paid with the $42,000 the city development board has of Mt. Union funds. The second claim is for $105,000 in damages awarded to former Mt. Union mayor Dan Johnson and former city clerk Linda Johnson in a defamation lawsuit against the former city in December 2017. The board decided the proceeds from the eventual sale of the community building and the remaining city funds will be used toward paying the debt. Henry County Auditor Shelly Barber says the board stated the county should impose a debt service levy to pay the remainder of the defamation claim plus interest and attorney fees. Barber says she would rather do a special assessment on Mt. Union residents as it’s still a separate taxing district. Mt. Union became an unincorporated community in March 2017.