Riverside reaffirms stand on county payment dispute

RIVERSIDE - The city of Riverside is standing behind its claim that a 2005 agreement with Washington County in unconstitutional and the city owes the county nothing.

The county sued last month, seeking the annual $175,000 in casino proceeds listed in the agreement.

The funds were to offset the loss of tax increment financing revenues used to repay the $9.4 million in revenue bonds the county sold for the city to make improvements for the Riverside Casino and Golf Resort. The $175,000 was to be paid for eight years from the $1,750,000 annual revenue received by Riverside from the casino.

In March, Riverside, called the agreement unconstitutional and said it would no longer pay the money. The city had made a payment in July 2008.

The city says in its response to the suit that the agreement violates Iowa's constitutional debt limits.

The county's petition filed Oct. 5 asked the court to order Riverside to resume paying the annual fee and sought injunctions requiring Riverside set aside the funds it receives from the casino while the case is pending. It also asked all court costs be assessed to Riverside and other damages judged “just and equitable.”

Riverside's reply filed in Washington County District Court denies that the county is entitled to any relief whatsoever and asks for dismissal of the petition and the requests for temporary and permanent injunctions. .

County Auditor Bill Fredrick said the county does not plan a reply to Riverside's answer, but would await a court judgment on the county's petition.

-By Mary Zielinski, Correspondent