Expressing the opinion that Elkhorn Goldfields, owners of Montana Tunnels and another mine at Elkhorn, have exhausted their chances to get an extension on delinquent taxes, the Jefferson County Commissioners voted unanimously July 11 to purchase a building from the mining firm, subtracting back taxes from the appraised fair market value of $50,500.
Saying the county had heard “month after month, year after year” that the company would pay up but had not seen any cash, Commissioner Bob Mullen said, “I think we’ve reached the end of our rope.”
The commissioners said they would buy a mine-owned wooden building on Boulder’s Main Street and its contents to be used for county services, perhaps for an event coordinator and/or recreation liaison. The county also might be able to lease out the building, they said. The building, between the Masonic Lodge and the Seventh Day Adventist Church, used to house the law office of Paul Brud Smith before it was purchased by the mining company.
Commissioner Leonard Wortman said a county facilities staffer had looked at the building. It would need carpeting and paint, said Wortman, but “otherwise it’s in very good shape.” The county is cramped for space, said Mullen.
The Main Street location would provide good visibility for county services housed there, said Event Coordinator Bruce Binkowski.
County Attorney Steve Haddon advised the commissioners they need to be sure what they are getting before signing any agreement. Due to the building’s age, he said, asbestos and lead paint might be factors. He advised getting a commercial inspection before any buy/ sell agreement.
If there is asbestos under the carpet, he said, the county could be “like the dog that chased the car and caught it; what do we do with it now?” Wortman noted county ownership would remove the building from the tax roles, but “nobody’s paying the taxes on it now,” so that makes little difference, he said. The decision to purchase the building will be contingent on a satisfactory inspection, said the commission.
Mullen said he thinks the county needs to look further into its options for collecting back taxes from the mine. Even if the entire value of the log building went toward taxes, the company would still owe more than $5.3 million in back taxes, penalties and interest. In the most recent offer from the county to get the back taxes paid, the county offered to consider forgiving penalties and interest of over $1.8 million if the company made six timely payments.
The mine failed to live up to the deal, not making any payments. It was not the first time the county tried to work out a payment plan and the mine failed to honor the agreement. The commissioners expressed an interest in retaining the viability of the mine, once one of the county’s largest employers. But any hope of that appeared missing last week.
