Journal Express, Knoxville, IA

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May 6, 2014

Update: City of Knoxville to sue KVA

Knoxville — Following a closed session Monday night, the Knoxville City Council voted to file a small claims lawsuit against the Knoxville Veterans Alliance. 

The motion to file the suit was made in open session following the closed. All council actions have to take place in open session. 

City Attorney Bob Stuyvesant had not received the appropriate documents related to the situation before him, but provided an overview of what the suit is about. The City and KVA had agreed to a tax-increment financing arrangement in the spring of 2012, following the announcement that KVA was awarded the lease for the Knoxville VA campus. Part of the agreement stated that the KVA would reimburse the City for attorney fees associated with the TIF. 

City manager Harold Stewart reports that the City agreed to pay up to $6,500 of any legal fees. There was $6,000 in legal fees incurred, but only $3,000 has been repaid

KVA is a partnership between Knoxville's James Washington and Aubrey Wilson of Virginia. Washington has paid his portion of this bill, but there is still an outstanding balance of $3,000. 

Washington reserved comment until he has the chance to review documentation. He intends to respond accordingly. 

Stuyvesant believes the suit will be filed Monday. We are seeking more information and will have a full report in the May 9 print edition. 

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