Tomahawk tabled again

The decision to release a lien on the Tomahawk Hotel was tabled again as the city waits for assurance it will receive a $100,000 payment if the building is sold.

A legal question regarding two agreements Green River Futures Inc., the owner of the building, made with the city is at the center of the issue. In 2009, the city entered into one agreement with the economic-development organization to utilize funding from the Wyoming Business Council to buy and renovate the historic hotel.

That agreement claims if the building is sold, the city would receive $100,000 of the proceeds from the sale, which would go to the URA/Main Street program. A second agreement the two entered into after $1.4 million in WBC funds was granted to the city did not have this clause included.

While the building was purchased by Futures, using grant money it received from the WBC, the city returned the second $1.4 million grant. According to Councilman Allan Wilson, the money was returned as a result of renovation bids coming in higher than anticipated, though Councilwoman Lisa Maes remembers the city council not consulting with Futures when it decided to return the funds.

“It was really quite messy,” she said.

While the city hasn’t received acknowledgement of if the they will be paid if the Tomahawk Hotel is sold, City Attorney Galen West said he believes Future’s position is it isn’t obligated to pay. However, both Mayor Pete Rust and Councilman Gary Killpack believe the city should be paid.

“I believe 100 percent that $100,000 should come back to the city in some form,” Rust said.

Killpack said he thinks the city should receive payment because of the financial help the city gave Futures when the organization was active in Green River. Killpack claims the amount the city paid Futures totals to approximately $1.6 million.  

Killpack initially believed the building was actually under city ownership, citing his opinion that Futures had dissolved, which under the agreement would have resulted in the city capable of taking over ownership at no cost. However, City Administrator Reed Clevenger said the organization is current with its filings to the Wyoming Secretary of State’s office.

While council members debated if they should decline Futures’ request outright or table it again until they confirm the city would receive money from the Tomahawk’s sale, the council decided tabling the issue was a more tactful approach.

Rust said while denying their request would have shown the council’s strength, it wouldn’t have been a great way to continue dialog between the two entities.

 

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