Haass Library talks failing
By Kelly Smith
Printed Living Sussex Sun, Nov. 11, 2014
Efforts to reach an out-of-court settlement in the dispute over the Pauline Haass farm land are failing or have failed and lawyers for the town of Lisbon and the Pauline Haass Library Board are preparing to go to trial, possibly later this year or early next year.
Library Board Attorney David Hase confirmed the talks “have abated” and no further mediation sessions have been scheduled after two meetings in October failed to produce an agreement in the dispute between the town and library board over custody and control of the approximately 65 acres that Haass donated to the town to be used for library purposes.
Town Attorney Kathryn Guntenkunst said she emailed the town’s latest settlement offer to retired Judge Patrick Snyder, who conducted the mediation sessions about a week ago and has not received a response.
However, both Guntenkunst and Hase said they are preparing for a trial over whether the town should be required to turn over the land to the library board.
Town officials have argued that according to the joint municipal agreement that created the library, they are not required to turn the land over to the library board.
Library officials say state law requires all donations to libraries must be under the custody and control of a library board.
Preparations for trail had been halted by both sides while the mediation sessions, which also included village of Sussex officials, were being conducted.
Waukesha County Circuit Court Judge James R. Kieffer is expected to discuss a potential trial schedule with the lawyers on Nov. 18.
However, Kieffer may be asked to resolve some key issues that will determine whether there will be a trail. The lawsuit was filed by the existing joint municipal library board, which will be dissolved on Dec. 31
The existing library and its governing board are being dissolved because the town of Lisbon decided to end the 27-year agreement that operated and funded the library.
Creating a new board
The Sussex Village Board was scheduled to adopt an ordinance creating a new municipal library and appointing a new library board on Tuesday, Nov. 11.
The newly appointed village library board will be an extension of the existing joint municipal library board, according to Hase.
Hase says no formal action by either the village board or the new library board will be necessary in order to continue the lawsuit filed against the town by the existing library board.
Guntenkunst disagrees. She argues the new library and library board created by the village is a totally new and separate entity from the existing joint municipal library and board and therefore cannot be involved in a legal action.
On Aug. 27, Kieffer ordered the mediation sessions include the village of Sussex and address how the joint municipal library’s assets would be divided by the town and village in the event of disillusionment of the agreement.
Who would retain control of the farm land and whether it would be included among the library’s assets were also supposed to be subjects of the mediation.
However, the three parties could not reach an agreement on whether the assets should be divided, according to sources close to the negotiations.
Town officials argued that according to the joint municipal agreement they were entitled to a share of the assets since the agreement and the library were being dissolved.
Village officials argued that the town was not entitled to any of the assets since the town dissolved the agreement. Furthermore, village officials argued they are going to continue operations of the library.
In addition, the parties could not even reach an agreement on the total value of the library’s assets.
Sussex unanimously votes to take over Pauline Haass Library
Printed Lake Country Reporter, Nov. 14, 2014
Village of Sussex As expected, the Sussex Village Board, with virtually no debate and a unanimous voice vote, on Nov. 11 approved an ordinance that will facilitate the village’s takeover of the Pauline Haass Library on Jan. 1, 2015.
There was no discussion during the village board meeting about the financial or tax implications of the village assuming most of the operating costs of the library, which has an annual operating budget of about $1 million.
However, village staff previously assured trustees that with a combination of revenue sources the village can fund most of the library operations without significantly affecting municipal taxes.
“This has to be done so the library can move forward,” Village Trustee Tim Dietrich, who is also library board president, told the village board.
Village President Greg Goetz vowed earlier this year that the village would maintain the library at its existing level of services after the town of Lisbon announced it would terminate a 27-year agreement in which the town and village shared most of the funding for the library.
The town contributed about $425,000 annually to the library. Much of that money will be paid to the village through a Waukesha County library tax that will now be levied against town residents.
The village can also use money in the future that previously had to be aside each year to pay off the village’s share of the debt service on the library building. The debt on the building will be retired at the end of the year.
Town officials may seek legal action against the village, claiming that the village cannot take over the library building because the town has a partial interest in the building through the debt service it also paid on it.
Town officials are also claiming that according to the joint agreement they are entitled to a portion of the library’s other assets, since the joint municipal library and board will be dissolved at the end of this year.
Haass Library dispute may go to 2016
Negotiations unsuccessful as court schedules trial in late 2015
Printed Living Sussex Sun, Nov 24, 2014
Town of Lisbon In August of 2012 when former Lisbon Supervisor Robert Williams warned the Pauline Haass Library Board that it could cost taxpayers hundreds of thousands of dollars if the library board got into a legal fight with the town, he was scoffed at by some library officials who thought he exaggerating.
After the events of last week, perhaps Williams should be taken more seriously.
It appears likely that Lisbon and Sussex taxpayers could face the possibility of a years worth of legal bills unless an out of court compromise is reached.
The library has filed a lawsuit against the town seeking “custody and control” of the 65-acre Haass farm that was donated to the town for library purposes.
Earlier this year, the town terminated the municipal agreement with Sussex that created the library 27 years ago. The town says it is entitled to share of the library’s assets since the agreement is being dissolved.
The village does not believe the town is entitled to any money.
The village has an advantage because most of its legal expenses have been paid by insurance coverage while taxpayers dollars have been paying town and library board legal sources.
Judge James R Kieffer of the Waukesha County Circuit court, during a Nov. 18 conference with lawyers, laid out a litigation schedule that indicates the four-year-old controversy between the town, the library board and the Village of Sussex is likely to continue into late 2015 and possibly 2016.
Included in that schedule is the possibility of jury trial late in 2015 or early 2016, and a summer full of hearings on key motions that may determine whether the conflict comes to abrupt end or continues.
The lawyers told the judge there was “no point” in ordering a new round of formal mediation sessions between the town, village and library board since the previous attempt at reaching an out of court compromise failed.
However, the Sussex Sun has learned from town and village sources familiar with the negotiations that there still may be a glimmer of hope for an out-of-court settlement.
The sources who are familiar with the various proposals in the negotiations spoke on the condition of anonymity because no one is authorized to publicly discuss details of the mediation sessions.
In addition to the details, the sources also provided insight into the negotiations that indicate the elected officials on the negotiating teams, Village Trustee Tim Dietrich and town board Chairman Matt Gehrke and Supervisor Joe Osterman, have a common goal of trying to end the dispute as soon and as equitably as possible
“The Town Board does not want to hurt the library. We wish the village good luck in taking over the library and we want to see it succeed. But we have a lot of money that we invested in the library and we would like some of it back,” said Gehrke.
Gehrke would not publicly discuss details of the negotiations.
According to the sources, the town board rejected a proposal offered by village and library negotiators that the town would maintain control of the Haass farm and be paid $50,000 from the estimated $3 million library assets.
The proposal was never presented to the village board or library board since the town board rejected it. The town proposed a counter offer, according to the sources.
The town would maintain control of the Haass Farm land and be permitted to forego a final payment of $105,000 to library operations in 2014.
The negotiators for the library and village rejected that proposed.
Village Administrator Jeremy Smith, according to the sources, devised another proposal that the town would turn the Haass land over to the library as an out-of-court settlement to the legal dispute between the town and library boards.
The land, or its equivalent value, would be returned to the town has part of a division of assets settlement between the village and the town.
However, lawyers overseeing the negotiations nixed the idea because they were not confident it was legal. It is uncertain when or if the negotiations will resume.
Because the town terminated the joint municipal agreement, the library board will cease to exist after Dec. 31.
The village of Sussex has created a new single municipal Pauline Haass Library that will be governed by a new 11-member board with seen members appointed by the village board and four by the Waukesha County Board.
Town attorney Katheryn Gutenkunst says she will ask the court to take control of the library assets until the disputes are resolved.
She is also likely to ask the court to dismiss the dispute over control of the Haass land since the library board which initiated law suit ceased to exist as of Dec. 31.
Kieffer plans to schedule hearings on those issues next summer. A new judge will be taking over the case later in 2015 since Kieffer is retiring.