Allamakee County threatens tax sale of Agri Star plant
Dave Dewitte • EasternIowaBusiness.com
Allamakee County is taking its beef with the new owner of the former Agriprocessors plant over $577,872.73 in unpaid taxes to the court of public opinion.
The county issued a sternly worded statement Thursday, June 9, through a law firm hired to help with the collection effort against SHF Industries, which operates the plant as Agri Star Meat & Poultry LLC.
“All property owners in Allamakee County, whether large or small, are expected to pay property taxes owed,” the statement said. It also invited investors to bid on the kosher slaughterhouse at a tax sale on June 31.
SHF Industries LLC bought the plant in August 2009 out of the bankruptcy of Agriprocessors Inc. The company is owned by Montreal businessman Hershey Friedman.
SHF said it has never received a tax bill for the property, and has determined that the county was continuing to bill Agriprocessors and a related real estate company, Neville Properties.
“As is common in bankruptcy sales, the sale was free and clear of any and all liens, claims and encumbrances,” said SHF’s New York-based attorney, Shalom Jacob, in a prepared statement.
Furthermore, the company said it’s not responsible for paying the taxes.
“It is our position we are not responsible for any unpaid taxes that were accrued under the previous owners,” Jacob said.
SHF has reached out repeatedly to Allamakee County to try to resolve the unpaid tax issue, Jacob said. He said SHF has reached out to the county to try to resolve the matter, ”surprise and disappointment” at the statement released by Huisinga.
The county maintains that SHF Industries owes $489,675 in back taxes, penalties and costs of $88,047, and special assessments of $151.73.
The greatest share of the uncollected taxes$282,579.70, is owed to the City of Postville, the county says. The second-greatest share, $133,147.24, is owed to the Postville Community School District.
A long list of other governmental units and county funds are owed smaller amounts, according to the statement.
Friedman has invested significantly to modernize and upgrade the facility, employment more than 500 individuals since buying the plant, Jacob noted.
“We sincerely hope this situation does not impact Agri Star’s ability to continue to be a strong employer and member of Allamakee County,” he said.
SHF has threatened to seek a court injunction to halt the tax sale, according to the county’s statement from Attorney Wesley Huisinga of Shuttleworth & Ingersoll PLC, Cedar Rapids.Huisinga was not available for comment on Thursday, June 9.
[Hat Tips: Agri-vated Angel, FGBA.]