BELLEVILLE – Wells Fargo Bank claims the Village of Caseyville owes almost $600,000 to investors that bought bonds to fund a 1998 redevelopment project.
Wells Fargo Bank, N.C., acting as trustee, filed the lawsuit in the St. Clair County Circuit Court against the Village of Caseyville and Village Treasurer Tamara Ammann, citing breach of contract.
According to the lawsuit, in 1998 the Village of Caseyville approved a redevelopment plan to develop a 500-acre plot of land in the village. In order to fund the project, Caseyville allegedly issued bonds in the principal amount of $30,975,00 on Dec. 1, 2004, with Wells Fargo Bank as trustee. The bonds matured on Dec. 31, 2022, which is the last day for payment of property taxes.
Under the indenture, bondholders were given collateral by Caseyville to ensure repayment of the bonds consisting primarily of "Net Pledged Taxes," defined as "all incremental Property Tax Revenue" derived by the Village on the new development through 2021. To receive property tax payments from the county collector and pay collected amounts to the trustee, a special fund was created.
The plaintiff alleges the Village of Caseyville failed to direct the county collector to allocate the 2022 tax collections to the fund and still owes bondholders $590,000. Instead the Village allegedly dissolved the fund and redirected the $590,000 to other purposes, the suit states.
The plaintiff is seeking a judgement for $590,000 plus interest, attorney fees, court costs and any other relief the court deems proper. It is represented in this case by attorney Rick L. Frimmer in Northbrook.
St. Clair County Circuit Court case number 23LA0626