HERKIMER – The Herkimer County Industrial Development Agency will appeal a recent court ruling that makes the IDA responsible for unpaid water bills at the H.M. Quackenbush property in Herkimer.
Quackenbush filed for bankruptcy in 2005, and the two buildings on the property have been vacant ever since. The Appellate Division of the State Supreme Court ruled that the IDA is liable for water charges incurred by a bankrupt recipient of IDA benefits.
Herkimer County Legislator Vincent J. Bono says the order is conflicts with well-established legal precedent.
“Among other reasons, it makes the IDA personally liable for the debt of another, for which it never contracted,” said Bono.
The IDA currently owns the property and is trying to market it to developers.
Herkimer County Administrator Jim Wallace says water bills for more than $200,000 are owed to the Village of Herkimer.
"The village left the water running for two years after Quackenbush left. It was counting on the county to pay those. We went to court, and the court said it's not a responsibility of the county, now it's now between the village and the IDA," said Wallace.
The IDA voted to move forward with the appeal on Sept. 5, 2019.
This latest appeal will be heard by the New York State Court of Appeals.
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