A local bank is asking a judge to review a decision by the Brokaw Village Board to not pay the money it owes on a bond for its Tax Incremental Financing district.
People’s State Bank Nov. 7 filed a suit against the village because, the complaint says, Brokaw refuses to pay its debt payment related to its TIF district. The suit, which asks for a court review of the board’s actions, says that on Oct. 30 the village board voted to appropriate no money toward the bond payment in 2018, according to a letter sent to People’s by Brokaw.
Brokaw fell into financial dire straits following the closure of its paper mill in 2012. Had the village dissolved, its debt would have transferred to the towns of Maine and Texas. The three municipalities formed a cooperative boundary plan and Maine became a village in order to help manage Brokaw’s debt.
Brokaw owes more than $540,000 for TIF development projects, the bank alleges in the complaint. People’s is asking for that money, as well as bond payments due from 2017 and anticipated bond payments in 2018. Brokaw as of Wednesday has not yet responded to the complaint.