Business
Boise County Bankruptcy Is Historic
March 2, 2011 
While Boise County is set to file for bankruptcy in federal court, there probably won’t be any auctions for snowplows and road graders in the near future. Since the developers who won the $4 million judgement against the county are themselves delinquent in paying their property taxes to the tune of $368,182, we expect a protracted legal fight.
The judgement stemmed from the county’s restrictions on a planned rehab facility for wayward drug offenders. The GUARDIAN offered details on the case in a DECEMBER STORY.
The GUARDIAN contacted Lloyd Mahaffey, the guy who runs Dynamis Energy and plans to build a “trash-to-power” electric generating facility at the Ada County Landfill.
It gets confusing here, so stay with us. Mahaffey is one of the partners in Eagle Springs Ranch which owns South Fork Landing at Garden Valley. They are delinquent on the taxes. Two of those partners, T. Erik Oaas and Steven H. Laney, are the guys who won the judgement on the troubled youth facility under the name of Alamar Ranch which also owes property tax. Here is how Mahaffey sees it:
“Since the County is struggling to meet their obligations of the judgement, Oaas Laney, with my support, has proposed to Boise County that the Southfork Landing taxes owed to the County be waived and the judgement reduced by that amount. This would help the County meet their obligations. As a side note, as Linda Zimmer (Horseshoe Bend), former County Commissioner will confirm, I have tried, as an individual with business interests in Garden Valley, to help the County and Oaas Laney reach a settlement in this matter since February 2010.
“I took this step because Dynamis Energy is planning to build a 3,000 square foot Network Operations Center to monitor and manage our waste to energy plants in Garden Valley (tech jobs, property taxes, etc…). Accordingly, I sincerely hope Boise County can find a way to overcome their material financial problems caused by certain elected and appointed officials during the Alamar land development process in a timely manner. Our offer on the taxes is designed to lower their cash payment obligation.”
There should be some interesting public hearings when Dynamis files to build the operations center.
The DAILY PAPER‘s Katy Moeller offers up a historic perspective on local government bankruptcy.
Previous GUARDIAN story on OASS-LANEY.
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Comments & Discussion
Comments are closed for this post.
Mar 2, 2011, 2:40 pm
I can do the math: $4 million lawsuit verdict less the $368,182 owed in taxes = $3,601,818 the county would still owe the developer, a 9.2% discount.
Shouldn’t we all be thinking of South Fork Landing, Eagle Springs Ranch, Alamar Ranch (the troubled youth home), and the proposed Dynamis building as totally separate entities?
And without going back and reading all the previous articles on this subject, how can the county’s requirements have caused $4 million in damages? Seems to me the county should be able to set the bar as high as it wants and the developer should have to meet their requirement or go elsewhere.
EDITOR NOTE–Much of the $4 mil is attorney fees. Also, I believe the “charge” was violating the U.S. Fair Housing act.
Mar 2, 2011, 6:32 pm
If the legislature had any “cajones” at all, they would pass a law that held elected officials personally responsible when they make these stupid, moronic decisions. Maybe some of these jerks would think twice about running.
Mar 2, 2011, 10:33 pm
Lloyd again – fingers in everything, yet seemingly producing nothing ….and where he goes some sort of controversy is never far behind.
Mar 3, 2011, 10:38 am
Rod
As a Boise County resident I can you that there is a lot more to this story than “setting the bar as high as it wants”.
Leaked information to the opposition, Commishes working with some subdivisions to help oppose the development, a County attorney ( Ron Twilegar) that the Commishes have sued and then were stupid enough to take legal advice from him
http://www.ktvb.com/news/local/64165772.html
And then on top of every thing else why our Commishes didn’t get advice from the City of Boise about this subdivision. I doubt in today’s world it ever would have been built if approved as is.
No the developer was playing against a marked deck. And then he figure out that he was cheated and got himself a lawyer that was smarted than the Commishes.. which didn’t take much.
Two things I know in Idaho City is that I know for sure our taxes are going up because of our ex-Commishes and we never will get cell phone service.
Mar 3, 2011, 11:58 am
“Oaas Laney, with my support, has proposed to Boise County that the Southfork Landing taxes owed to the County be waived and the judgement reduced by that amount.”
Change that to “…TO that amount,” –along with approval of Alamar Ranch, and a reasonable deal would be struck.
Mar 3, 2011, 5:49 pm
There’s always more to the story.
IF I were a Boise County citizen and opposed the rehab facility, I would support the commishes in anything they did to stop it. If I thought the rehab facility was a good idea I would be blaming the commishes.
I assume the commishes were elected and thought they were doing what their constituents wanted them to do.
And if I were a Boise County citizen now I would be urging the present county government to tell the judge: “Come on up and just try to collect any money from us, we dare you.”
Mar 3, 2011, 7:14 pm
The lawyers always win, even when bad legal advice was at the core?
Mar 4, 2011, 6:02 pm
There are numerous cases about the Fair Housing Act and how developers of “undesirable projects” making a bundle of money from those who wish to challenge this act.
Any project that provides housing services to those with just about any disability can locate in ANY NEIGHBORHOOD they wish to operate and if challenged the challengers will not only lose but will end up paying a bundle in punitive damages, lawyers fees and other various damages no matter how weak they appear to the casual observer.
Boise County was the victim of poor legal council in this matter. There are ample cases in this area of law and their challenge was doomed before it got started.
Mar 5, 2011, 10:11 am
Just another stupid law we need to dump Paul
Mar 6, 2011, 1:02 pm
I could not agree more. But the FEDS have once again usurped local planning and zoning in the name of fair housing.