HOT SPRINGS - Opponents of the Hot Springs City Council's proposed settlement of a lawsuit over the local golf course addition have not decided whether they will try to refer the council's most recent actions to a public vote.
They will wait instead for a judge's action on an earlier attempt to refer terms of the lawsuit settlement, according to Gerald Collogan, one of the settlement critics.
The Hot Springs City Council on June 16 approved a set of measures to settle the lawsuit with developers of the Southern Hills Municipal Golf Course addition.
The measures would:
- Approve a land exchange between the city and the golf course developers, which was done several years ago to pave the way for the golf course addition.
- Allow the city to procure $625,000 to pay the developers for construction of the back nine of the golf course.
- Approve closure of the city's rubble pit and transfer station.
The council approved two resolutions for the land exchange with developers Steve and Carla Simunek, and Black Hills Hardscapes.
City attorney Pat Ginsbach told the council that an appraisal by David Nichols, based on 2002 valuations, showed that the property transferring to the city from the Simuneks was valued at $373,000 and the land the city received from Black Hills Hardscapes was valued at $191,000, for a total of $584,000.
Nichols' appraisal showed that city land going to the Simuneks was valued at $368,000 and land going to Black Hills Hardscapes was valued at $151,000, a total of $519,000.
Mayor Carl Oberlitner noted that the city comes out, "About $45,000 ahead then."
A state audit found that an appraisal was not done prior to the deal, in violation of state law.
Both land exchange resolutions passed unanimously on June 16.
The rubble pit and transfer station resolution passed by a vote of 6-2. The agreement states that the city will close the facilities at their present location by December 31, 2010.
The council approved two ordinances that are part of the golf course settlement agreement. Ordinance 1065 allows the city to borrow the $625,000 to pay the Simuneks for construction of the back nine on the golf course. Opponents wanted the Simuneks to be paid back gradually from golf course proceeds.
Ordinance 1064 amends prior ordinances and revises the definitions of Rural and Urban Service Districts, the criteria for each and spells out when the land in a Rural Service District transfers to an Urban Service District for tax purposes.
Earlier this year, after the council approved stipulations of the settlement agreement, citizens circulated petitions to refer the council's action to a public vote. Those petitions were not accepted, on Ginsbach's advice, because he said they attempted to refer an administrative action taken by the council. Only legislative actions are referable, he said.
Darnell and Deborah Okerson filed a writ of mandamus challenging the city's refusal.
Fourth Circuit Judge Jerome Eckrich denied the Okersons' request for a temporary restraining order to stop the settlement measures approved at the June 16 meeting.
But a hearing is scheduled for Wednesday, July 2, in Hot Springs on the Okersons' writ of mandamus.
Ginsbach said all three ordinances and the two ordinances approved by the council on June 16 are referable.
Anyone who wishes to refer the five measures to a public vote has until July 14 (20 days after they were officially published on June 24) to file petitions, according to city Finance Officer Cheryl Wait. As of Wednesday, no one had filed petitions, Wait said.
Opponents will wait for a judge's ruling in the July 2 hearing before deciding what action to take next, Collogan said Wednesday.
He said petitions would have to be gathered to refer each of the five measures approved on June 16. "We're running out of shoe leather and people are running out of patience," he said.
