EXCLUSIVE: First In New Wave Of Evictions Hits Postville

Details:

It's a little house at 129 South Maple Street, just under 1300 square feet, built in 1908. Its condition is below normal.

The three bedroom house with an assessed value of $35,000 is owned by Nevel Properties, Rabbi Sholom M. Rubashkin's real estate company.

When 150 Palauan workers were brought to Postville late this summer, most were housed by GAL Investments. But GAL did not have enough properties to house all of the Palauans.

So Agriprocessors put a few of the Palauans in Nevel properties but GAL manage them. One of those properties is 129 South Maple.

This morning, the occupants of 129 South maple were evicted.

Gabay Menachem of GAL Investments tells me he did not ask for that eviction. He pointed out the property is now being managed by Trevor Siebert.

Siebert told me he did not ask for the eviction either. I asked him if anyone at Nevel Properties or the banks could have ordered it. All he would say is, "I did not order it and no one working for me ordered it."

Assuming both Menachem and Siebert are telling the truth, only Nevel Properties could have ordered the eviction.

Charles "Chuck" Kelley, who name is written at the top right of the eviction order, is both Nevel's and GAL's attorney.

I called him last night and asked him if he ordered this eviction. He declined comment. He also declined to comment when I asked if Nevel or the banks had ordered it, saying he was not able to comment on actions his clients may or may not have taken.

Siebert described these tenants as deadbeats who had not paid any rent, even though all are working. He also told me he would not call off the eviction unless they paid.

Palauans have repeatedly claimed they were promised free housing as part of a package that brought them from the Pacific island of Palau to Agriprocessors in Postville. Instead of free housing, Palauans got substandard housing at inflated rents and were paid less per hour by Agriprocessors than promised.

Siebert was quick to add there are no other evictions are scheduled until after next Tuesday's meeting with state, county and city officials. The meeting is meant to explain to landlords why the government promised them market rents for their properties and then after the fact cut that rent by one third.

The mortgage payment on this property can't be more than $350 per month. With insurance, the cost would be less than $450 per month – in other words, the basic cost to keep the property occupied is just about what the government is willing to pay for it. Unlike other properties purchased more recently or that are newer or larger, this property fits well with the government's revised program.

Even if the tenants are deadbeats, why evict when government payments will more than cover the mortgage, insurance and even management fees.

So, who asked for this eviction?

Based in part on my previous conversations with Gabay Menachem and Trevor Siebert, I think Nevel – meaning its attorney, Chuck Kelly – asked for the eviction and did so on urging of the banks and the recommendation of Siebert.

Why evict?

I think the reason is the banks do not trust the government. The government unilaterally changed the rental assistance program after the fact. That hurt landlords – which means the banks were hurt.

In the eyes of the banks, who's to say the government won't change the program again and take away more money from them?

Until the government can find a way to assure the banks that won't happen, the banks will not agree to participation in the rental assistance program.

What does that mean?

If renters don't come to GAL and Siebert with money and work out payment plans, it means wholesale evictions will begin late next week or early the week after.

And that $698,000 grant the State of Iowa touted? The grant that was meant to stop evictions and stabilize Postville?

It will go largely unused.

Based on the actions of Iowa's Department of Economic Development, perhaps that's what Iowa's governor wanted, anyway.

Previous Posts: 1, 2, 3, 4, 5.

Comments

[Archie Bunker]

I think Typepad just dug their own grave. They now only allow a few comments at a time to be displayed. On more active threads you have to go through up to a dozen pages to follow the discussion. People just don't have time for so many page loads and will stop commenting after the first page.

When Blogger did this last year they at least allow 200 comments per page.

I predict that blogs using Typepad will lose readers thanks to this.

[Archie Bunker]

http://www.startribune.com/templates/Print_This_Story?sid=36354354

How many of Shmarya's groupies are going to crash on him? There should be plenty of room in the basement.

[Equal Time]

--http://www.startribune.com/templates/Print_This_Story?sid=36354354

How many of Shmarya's groupies are going to crash on him?--

2 questions.

1. What does an article on gay marriage have to do with the subject posted?

2. How can you justify your own indignation in the Mikveh thread at woolsilkcotten's posts directed at yiu when you take essentially the same cheap shots at others?

[Archie Bunker]

It's because of my opposition to the militant gay acceptance agenda among other things that WSC loses it and makes up stories that include ridiculous sexual innuendo.

The two don't compare.

I didn't post it back there because I won't wait for 8 or so pages to load.

[Archie Bunker]

BTW, I didn't mean to imply that they've got "something" going on with Shmarya. I just meant that as staunch supporters of the gay "cause", they will no doubt be interested in helping the Minnesota effort and can use Shmarya's basement as a crash pad.

If the tables were turned however, the likes of WSC would accuse his opponents of having a sordid relationship.

http://www.wcfcourier.com/articles/2009/01/03/business/local/10863900.txt

"The two remaining major landlords in Postville have criticized the federal guidelines governing the grant money. It restricts the rent money to a fair-market-value price, which is determined by a federal formula that applies to the entire county.

The town was originally told by NICAC officials that there were no restrictions on the money.

But officials looked into possible restrictions after they learned of a number of suspiciously high rent prices on applications.

That's when landlords were told the grant, which is designed to pay for all rent and utilities for three months, will cover only about 60 percent of what they charge."

[Isa]

Mr Bunker!!
Mr. Bunker try using the Firefox Browser.
This morning my company sent me a different laptop and used IE to look at FM.
Firefox is not a cure all for ALL difficulties and in fact some Web sites just don't work with it.
Isa

[justice seeker]

Sorry I think your take is wrong. The banks are feasting at the bailout table. Likely the tenants, who are purportedly working, aren't paying because of the broken promise on housing. Also the rents are likely sky high and the place is probably a dump. Plenty of reasons to stage a rent strike and be prepared to move on. If thats not enough look at who owns it, I doubt it is a square deal.

[Shmarya]

I think Typepad just dug their own grave. They now only allow a few comments at a time to be displayed. On more active threads you have to go through up to a dozen pages to follow the discussion. People just don't have time for so many page loads and will stop commenting after the first page.

When Blogger did this last year they at least allow 200 comments per page.

I predict that blogs using Typepad will lose readers thanks to this.

I think you're right.

TypePad has a terrible design team. I'll have to move my blog elsewhere.

[Shmarya]

http://www.wcfcourier.com/articles/2009/01/03/business/local/10863900.txt

"The two remaining major landlords in Postville have criticized the federal guidelines governing the grant money. It restricts the rent money to a fair-market-value price, which is determined by a federal formula that applies to the entire county.

The town was originally told by NICAC officials that there were no restrictions on the money….

I love the way Courier basically stole my work.

Pathetic.

[Just a Goy]

Shmarya,

Your questions still have not been answered... why the evictions? The amount offered is so close to par... Secondly, the attorney, Kelley - does he have any real estate holdings /interests / ventures in the area?

No one seems to know who, how, and why evictions are being carried out...?

I understand the banks stance, but no income as apposed to the majority, just for the time being...?

[Jason]

AB:

I predict that blogs using Typepad will lose readers thanks to this

Finally, for the first time in a while, Archie and I agree on something.

Ok, now let's get back to normal...

[Jason]

AB:

I predict that blogs using Typepad will lose readers thanks to this

Finally, for the first time in a while, Archie and I agree on something.

Ok, now let's get back to normal...

[Just a Goy]

Secondly, isn't there a reasonable period of time allowed before the evictions take place… 30/60/90 days (or were previous filings considered in conjunction / time served)?

[Shmarya]

There is no provision for reasonable time.

Once rent is late, the landlord goes to court to get a judgement for eviction. Then eviction is scheduled.

This all takes about 2 weeks.

[concerned citizen]

Just drove by 129 S Maple. All of the junkthat is sitting on the curb-terrible. Although there are a bunch of nice mattresses there, wonder what they are doing with those. Wonder how many more places we will like this in the coming days?!?!

[ML]

Archie,

Does the fasting make you want to look up articles about gay marriage more, less, or about the same?

Does the fasting make it harder or easier to curb your homosexual urges?

[Archie Bunker]

ML,

the lowlife tactics of you & your like-minded friends to label your ideological opponents as being gay or otherwise deviant will not get me to go away or tone things down.

Incidentally I did not LOOK for that article as it was on the sidebar of a Strib article on Rubashkin.

Thanks in any case for demonstrating how Liberals will stoop to any low tactic to stifle other opinions.

[Curious Postville Native]

Shmarya~

After first reading this post, I decided not to respond immediately. Something didn't seem quite right. Then, it hit me . . . Why would Nevel Properties evict any desparately needed workers? If the facility is intending to operate, won't they need these employees? The workers are one of the (few) 'assets' the facility has left. Nevel evicting the employees of 'Agri' makes no sense to me.

[State of Postville III]

C'mon folks--what does gay marriages etc. you are bickering about have anything to do with evictions. Stay on subject or stay off the blog.

[FirstGenerationBavarianAmerican]

If the tenants of this house were working legally, and if they filed for emergency assistance to forestall eviction, a check of unemployment insurance premium payments would likely have made these tenants ineligible for assistance. The landlord would not even have gotten a "IOU" from the agency administering the grant. Could this have been a garden-variety eviction, rather than a pressure tactic by the bank(s) to get the grant administrators to pay a more realistic rent allowance?

[Original Postville Resident]

You are all missing something on this government paying rents deal. I don't know exactly how it all works or what the stipulations are on the grant money. But I do know that if someone applies for rental assistance through the Upper Exploreland Regional Planning office, the homes and apartments have to meet certain specifications to qualify and it isn't just a matter of applying and getting rent paid. Since most of the rental properties in Postville apparently have been trashed and/or not kept up to living standards by our slumlords, it would appear that they do not qualify for this governement assistance, no matter how much money it is. So it's the Land/slumlords own fault that they can't get the rents paid on their properties with "free" taxpayer money. Bring them up to standard and charge "reasonble" rents that follow along with "below poverty wages" still being paid by Agri.

[Shmarya]

After first reading this post, I decided not to respond immediately. Something didn't seem quite right. Then, it hit me . . . Why would Nevel Properties evict any desparately needed workers? If the facility is intending to operate, won't they need these employees? The workers are one of the (few) 'assets' the facility has left. Nevel evicting the employees of 'Agri' makes no sense to me.

The banks basically owns the properties now.

[WoolSilkCotton]

Yes indeed, Archie does not look for gay articles; they have a way of finding HIM!

Be careful Archie, looking up too many gay articles may cause you to become gay, although you probably already are, and don't need to be ashamed of it.

Archie, you do enjoy metzitzah b’peh, don't you? After all, it is a great mitzvah. God demands that you do it. Since you're hungry now, think about it, and run to the mikvah! Maybe you'll meet someone new to practice on!

http://www.nyc.gov/html/doh/html/std/std-bris.shtml

http://www.ou.org/pdf/ja/5767/winter67/24_41.pdf

Archie's haredi world is so wonderful. Nothing homosexual about it.

residents of the Dorchester trailer park in northern Allamakee county lost their trailers in flooding about June 7th. Others in nearby communities experienced the same. There must be people who may be looking to replace lost possessions which could help some renters trying to get enough money to get out of town.

[yidandahalf]

Look, could you people shut the fuck up and keep on topic?

[Equal Time]

--Look, could you people shut the fuck up and keep on topic?--

That's the problem - they are.

Had Archie not begun the thread by hijacking it - the thread wouldn't be here.

While I accept his explanation to me, someone else (who did not ask) really could not have to make an unfair leap to conclude that he was calling Shmarya gay. Someone who really doesn't LIKE Archie (and there appear to be more than a few who fit in that category) would SURELY believe he was calling Shmarya gay.

Archie says he was not calling Smarya gay - accepted. He further says he posted in this discussion - because it would have taken too long to post it in the relevant one. Again accepted (even thought for the life of me I can't find the "let's allow gay soldiers" discussion anywhere).

[state of disgust]

"The banks basically owns the properties now."

Not unless they have actually foreclosed on Gal, Nevel etal defaulted loans. There would be a record of court proceedings if that were the case. More then likely there may be tax benefits realized if the property is vacant and the tax benefits may be worth more then the partial income generated by the property. Someone familiar with Iowa real estate law would know.

WSC, y'know that if you didnt get metitz b'peh at your bris it might not be kosher?

[yidandahalf]

It seems that the banks, landlords, and powers that be want a clean slate so the properties can be rented to new tenants at the rates they want. It looks as if all with influence want to 'clean house' and start over whether with a new meat processor of better reputation and better class of worker or a different economic investment for Postville altogether. By limping along with 'dead beat tenants' as they call them, in run down properties which all occured as a result of a corrupt and now defunct Agriprocessors it could go on forever and money is lost by the day with the government aid perhaps not enough to cover the property taxes.
If dismantling is going on, it would seem to be a step in the right direction. The tenants go and the landlords hopefully cut their losses and buy in some other town they feel will perish without them and their miracle economic opportunities.
I really would like to visit Postville, so many of us comment and post and put our shabby two cents in, but what do we really know?

[yidandahalf]

I don't have to go to VIN today to find truly elevated content, why, it's right here.

I'm getting pretty tired about hearing about the towns slum landlords and their poor dilemas. If Agri promised their workers homes which they deceived, why are we suppose to be so alarmed the landlords are losing money? It is more like really bad investments made by the landlords and the banks were also greedy lending it to them. Its everyday life in America, nothing different. Take their losses, close the evil plant and let Postville get on to a new life. Hopefully they can invest in a company, other than a kill plant, with honest employers. Maybe this nightmare will end soon for Postville.

[yidandahalf]

Many people insist Posville must retain a slaughterhouse. A cleanly run one, a by the book one, a 'good' one. A slaughterhouse must reckon in the future of Postville. Apart from the waste treatment facility that the Rubbishclan was responsible for, is there any other reason why so many people are convinced that slaughter and Posville must go on together? Of course the animal livestock dealers want it. And the politicians want it. I guess everyone wants a slaughterhouse.
We hear nothing to the contrary. No mention of wind farms, no mention of anything but a meat factory. Day by day, nothing is heard.

[State of Postville III]

It probably won't end soon. It is like a slow death from cancer without treatment options. Maybe surgery would work, and this is what "they" are thinking with the evictions. Supposedly beef kill is to begin Monday, Jan. 9, wonder if anyone would be dumb enough to sell cattle UNLESS the money is in the pocket before the cattle leave the farm.

It would be hard to rent something once evicted because the landlords are "buds" and no doubt know who doesn't pay rent. By the way if you have to have water turned on it is $250 deposit. Try that for size making minimal wages. Why? because of all these deadbeat people or landlords who did not pay water bills. How is that for keeping people from living here? GAL collected water bills but didn't pay the city-claiming he wasn't paid so if a person wanted water had to pay the deposit, back water bill (already paid). How would that be for a small business such as a beauty shop. The people it happened to moved next door into a place owned by a Postville person. Another shop moved because GAL raised the rent on a little shop to $500. Want anymore examples of abuse???

[Archie Bunker]

http://www.observer.com/2008/real-estate/protests-so-jane

This is off topic but I think everyone enjoys a humorous story involving Ronn Torossian.

Here he is going to war with Vanity Fair chief Graydon Carter.

[state of disgust]

What is the role of the Mayor in aiding and abetting collusion among and between real estate companies n Postville to evict tenants?

[Concerned for the Postville area..]

Common sense should tell everyone that any business relys on trust and integrity to whom they supply. This is why another slaughter house in Postville will never survive. The integrity is gone along with all trust. Does anyone even think for a minute that one would sell their livestock to Agri or another name used with the same players behind the scenes? Think about the farmer who does chores 365 days a year, no matter what the weather, no matter if they are sick, no matter what the price may be at the end. Lets put in the pride issue that the ending product is healthy and looks great. This is their livihood, in turn they pay off notes which they have borrowed in good faith from lenders, hoping to gain a small amount of profit to keep them afloat for another year. This is Iowa! What burns me the most is when you have outside buyers move in and they don't have the same values, integrity, honesty or faith. They come to a town where people are open and they in turn shon them for years. It isn't about race nor religion, like alot would like to label. Its about wanting to have business in town which is an example to others. Its about treating people with respect and dignity. Its not about satisfying your own greed and tearing a town apart. Its not about taking advantage of locals and others in the world. Postville residents have been a shining example to the world. More than most of you will ever know. There comes a time when enough is enough, and I think the residents of this town are at that point. When the blog came out saying Israel was buying the plant, we were horrified! Again, outsiders coming in. What is in store for this round. People in the midwest have been raised with values and high morals, many of the outsiders just plain don't have them. Its hard seeing your town ripped to shreds knowing you can't stop it. If you can't play by the rules, leave! For the ones whom have stayed and are trying to take advantage of every situation, leave! If you came thinking you were going to make a huge profit at our expense, leave! Your not welcome, leave! If this town is so unjust, leave! If you want to blame race, leave! If you want to blame religion, leave! If you want to be an active, productive member of society and want whats best for the town and its people by all means, stay! Its just that simple people, nothing more, nothing less.

[Shmarya]

"The banks basically owns the properties now."

Not unless they have actually foreclosed on Gal, Nevel etal defaulted loans.

I believe Rubashkin voluntarily turned over the properties to the bank(s).

It may be the banks are holding those properties for him until the feds are done, or it could be the bank(s) are keeping them for the duration or until a later sale.

did anyone see the postville paper with the picture of agri's water tower with the banner, "hometown to hope"? does anyone see the irony in this? what a disgrace! that banner should be displayed, but not with the company who started all this mess! it should read "hometown to hope you shut this slaughterhouse down" would be more fitting!

[Curious Postville Native]

Shmarya~

Specifically, which banks are you referring to?

[Shmarya]

Citizens. Freedom and Loaena (sp) all could be involved.

[WoolSilkCotton]

http://meat.org/

[Archie Bunker]

Some excerpts. I did not include some Democrats & Republicans.

http://www.northcountrygazette.org/2009/01/05/most_corrupt/

A list of Washington’s “Ten Most Wanted Corrupt Politicians” during 2008 has been released by Judicial Watch

Obama Advisor Valerie Jarrett (D-IL): CBS News once called Chicago politician Valerie Jarrett “the other side of Barack Obama’s brain.” Residents of a housing project in Chicago simply know her as “slumlord.”

Jarrett is the former manager of Grove Parc Plaza, a controversial low-income housing project located in Obama’s former state senate district.

According to the “Boston Globe”, the housing complex was considered “uninhabitable by unfixed problems, such as collapsed roofs and fire damage… In 2006, federal inspectors graded the condition of the complex an 11 on a 100-point scale - a score so bad the buildings now face demolition.”

According to documents uncovered by Judicial Watch, Jarrett is also linked to a series of other shady real estate scandals involving convicted felon and former Obama fundraiser Antoin “Tony” Rezko. Jarrett has also been caught up in the Blagojevich scandal as Obama’s Candidate #1 for his senate seat. Most of Blagojevich’s corrupt negotiations with the Obama team centered on the possible Jarrett appointment. She remains mum on the scandal.

President-Elect Barack Obama (D-IL): As Barack Obama assumes the presidency he already brings to the White House a large amount of ethical baggage. Obama’s presidential campaign had some of the ethical trimmings of a Chicago ward election. It was marked with enormous corruption issues, ranging from its alliance with the sleazy ACORN operation’s “voter registration” and “get out the vote” efforts to its acceptance of untraceable, and in too many cases, illegal online contributions.

There are also Obama’s corrupt dealings with convicted felon Tony Rezko and unrepentant terrorist William Ayers, his below-market rate mortgage loans, his stock dealings and related “earmark” votes in the U.S. Senate, and his missing or non-existent official papers from his years in the Illinois State Senate. His ongoing cover up of his and his team’s role in the Blagojevich “pay-to-play” scandal is ruining his presidency even before he takes the oath of office.

House Speaker Nancy Pelosi (D-CA): Last year House Speaker Nancy Pelosi made the “most corrupt” list for sneaking a $25 million earmark for her husband into a $15 billion Water Resources Development Act passed by Congress. This year, Pelosi ran afoul of federal election law by participating in an illegal advertising campaign funded by Al Gore’s non-profit Alliance for Climate protection. The advertisement featuring Pelosi ran at least 300 times nationally, including in the House speaker’s district, during campaign season, representing an illegal in-kind contribution to her campaign.

Perhaps more disturbing than this incident, however, is the fact that Speaker Pelosi has allowed corruption to run rampant in Congress and has ignored serious incidents of crooked behavior within her own party. Pelosi promised a new era of ethics enforcement during the 2006 campaign and she has failed to deliver. Instead, she continues to protect the worst of the worst of political corruption in the House of Representatives.

Rep. Charles Rangel (D-NY): Rep. Charles Rangel, chairman of the powerful Ways and Means Committee, took the unusual step of filing an ethics complaint against himself in 2008 related to scandals involving unpaid taxes and rent-controlled apartments. This act was clearly a publicity stunt, but regardless, the House Ethics Committee took the New York congressman up on his request, and even took things a step further by expanding the scope of its investigation.

The initial transgressions that led to the ethics panel probe involve: Rangel’s failure to pay taxes on $75,000 in rental income he earned from his off-shore rental property; his efforts to use his influence to keep hold of highly coveted rent-controlled apartments in Harlem; and misusing his congressional office to fundraise for his private Rangel Center. Now Congress is looking into whether or not Rangel preserved a tax loophole for an oil drilling company in exchange for funding for the Rangel Center as well.

Former Rep. William “Dollar Bill” Jefferson (D-LA): William “Dollar Bill” Jefferson was nabbed in a sting operation accepting a $100,000 bribe from an FBI informant to broker business deals in Africa. During his conversation with the informant, who was wired, Jefferson famously remarked, “All these notes we’re writing to each other, as if the FBI is watching.” Well, the FBI was watching (and listening) and during a subsequent search of Jefferson’s home, investigators found $90,000 in cash stuffed in the congressman’s freezer. (The marked bills were later recovered by federal authorities.) Jefferson allegedly intended to use the money to bribe a Nigerian official over a business deal that would have enriched himself and his family.

Jefferson was widely expected to return to Congress despite these serious allegations. However, in a December 2008 special election surprise, voters decided instead to send “Dollar Bill” into retirement.

[neighbor girl]

Once again, Dave DeWitte writes an article in the Cedar Rapids Gazette which I can't anywhere else: "Beef suppliers to be paid by Agriprocessors". I can't find this on gazetteonline.com, but was in the Tuesday newspaper. DeWitte has been covering the bankruptcy court hearings. He reports that $2.5 million in cattle claims were authorized to be paid. Poultry suppliers' claims will be presented to the court later this week. The trustee got another million from First Bank of St. Louis to continue processing.

Here's an interesting quote: "Sarachek said he plans to conduct an open auction process that would begin by identifying one qualified buyer. He said that buyer would be used as a 'stalking horse,' allowing other interested parties to come in behind it with competitive bids."

I heard that 10 new students have enrolled in the Postville school this week. Is Agri processing turkeys now? Is it true that the beef kill will begin soon?

[Rachel Batya]

Shmarya, would you please exercise some editorial discretion when entire off-topic arguments and articles appear in threads?

This is a report about people being evicted in the middle of an Iowa winter. It would be a mitzvah if you could help your readers give the issue their undivided attention.

[Curious Postville Native]

neighbor girl: [Is it true that the beef kill will begin soon?]

That would (literally) be the proverbial 'million dollar question'.

Archie~
Why are you so often off topic?!

[State of Postville 2]

Neighbor Girl, CPN -

The rumor mill has it this way. The Israeli Company expressing interest wants to see how efficiently the beef processing line can operate. In order to get sufficient data, it would likely take a run of a couple hundred head.

My question is this: are there enough experienced people left in the area to run that many beef through?

Another question. Does anyone know if they are buying chicks to raise on their farms?

[yidandahalf]

A poster at 10:33 causes me to respond:
In the end the commentors govern themselves over 'editorial discretion' so that the blogmeister is left to do what he does best and does faithfully. Should we commentors shrei to him for redress about something we can arrange ourselves?

[Curious Postville Native]

SOP II:

I do not know about their own farms, but I know of one creditor who is incubating hatchlings (on this very day) for the facility.

Enrollment has increased at PCSD.