MOUNT VERNON — Knox County Common Pleas Judge Richard Wetzel appointed Jack Harris as receiver in the Knox cattle dam case, formally known as the State of Ohio vs. The Landings Property Owners Association Inc.
In 2020, the Ohio Department of Natural Resources asked the court to determine the owner of the lake and dam because the dam needed repairs. On Sept. 23, 2024, Wetzel ruled the Landings Property Owners Association is the owner.
The ruling obligates the POA to comply with Ohio’s dam safety laws and pay the cost to bring the dam into compliance.
However, the POA failed to file a statement of continued existence with the state, so the state canceled its articles of incorporation in 2015.
That does not negate the corporation’s responsibilities. On Oct. 3, Wetzel appointed Harris to act as receiver for the corporation.
Harris is president of Dublin-based Intercept Management Corp. He has a real estate background and a 10-year history of serving as a receiver for insolvent companies.
His experience includes two cases involving homeowner associations, cases involving retention ponds and dam, and Stein Brewing Co.
Harris’ duties are:
•Reinstate the POA’s articles of incorporation
•Apply to the City of Mount Vernon to encumber funds for dam repair
•Apply for public and/or private funds to bring the cattle dam into compliance
•Work with Mullins Bros. to complete formation of the homeowners association identified in the restrictions: Landings Common Area Association
•Work with residents to determine how that HOA will be governed
•Implement interim risk reduction measures (IRRMs)
Wetzel said working with the HOA includes determining the dam’s design, which determines assessments and how much additional money is needed to repair the dam.
Interim Risk Reduction Measures
The Knox County Board of Commissioners designated $1 million of county American Rescue Plan Act money toward dam repairs. It transferred the $1 million to the city for “stormwater, sanitary sewer, and water supply projects.”
At the Oct. 3 hearing, City Law Director Rob Broeren said additional IRRMs are needed. The city obtained two quotes, both “well beyond the remaining money left by the commissioners.”
Broeren said about $900,000 remains after the city completed earlier IRMMs.
Additionally, Wetzel ruled that the city must set aside $70,000 for Harris’ fees and expenses as receiver.
Broeren noted the county transferred the funds to the city for a water project. He is researching whether receivership expenses qualify.
The additional IRRMs are needed because clogging of the primary outlet and siphons, lake sedimentation, and poor retention in the upstream stormwater pond make maintaining the court-ordered water level difficult.
IRRMs include:
•Construct a new principal spillway and lake drain
•Remove accumulated sediment from the lake bottom and evaluate and implement measures to reduce future sediment accumulation
•Remove woody vegetation from the dam
•Reconstruct and improve the upstream stormwater pond
•Performed a detailed hydrologic and hydraulic (H&H) analysis and dam failure analysis
•Contract design, permitting, and construction oversight services and perform geotechnical testing and analysis as necessary
Counsel for the city and ODNR requested permission to implement the IRRMs immediately, noting that some of them needed to be completed before winter.
However, Wetzel gave Harris 30 days to talk with the homeowners about the ultimate dam design and check into financing options.
He also noted that Harris can request the court to begin implementing the IRRMs at any time.
Cattle dam court costs
Wetzel ordered Mullins Bros. to deposit $20,000 to cover court costs and receivership expenses. As of Oct. 8, $6,995 is outstanding.
Responding to counsel for Mullins Bros., Wetzel said the $20,000 is appropriate because, as developer, the defendant did not fulfill its promise under the deed restrictions.
Secondly, the court waived Mullins Bros. initial fees, which totaled between $5,000 to $6,000.
The next oral hearing is set for Monday. Nov. 4 at 1:30 p.m.
