By Dewey Terrill

JC Post

A summary judgement has been issued in a case involving a lawsuit filed by Farmers Bank of Great that included among other defendants the City of Junction City. The Bank could appeal the ruling to the Kansas Court of Appeals but otherwise it means former city officials and the City itself have been dismissed from the lawsuit.

City Manager Allen Dinkel said in 2007 a former mayor signed a loan guarantee with Homestead Housing to guarantee a loan with Farmers Bank. The City was unaware of the action, and felt it never met the cash basis law. “In about 2014 I believe Homestead Housing came to the City and said pay our payments because you had the loan guarantee. ” Dinkel noted that in 2015 after he arrived in Junction City the City was sued. “They also sued the City, former mayor Heldstab, former City Attorney Zimmerman, former City Clerk Woodruff. And of course the City had to provide legal counsel for them and defend them under Kansas law.”

Dinkel confirmed the lawsuit involved the southeast portion of the Bartell House where a former restaurant was located.

The City manager confirmed that the cost for the City to defend the lawsuit totaled approximately $300,000. Dinkel noted that if the city had not battled the lawsuit the cost would have been greater.