If the citizens group protesting plans to build a new Allen County Jail continues its lawsuit, county officials want the group to put up a bond worth as much as $91.6 million to offset rising construction costs.
But if the state tax court judge rules in favor of that request, the four county residents plan to appeal to the Indiana Supreme Court, the group’s attorney said this week.
“I’ve argued in the (Indiana) Supreme Court many times, so I’m happy to go up there,” said James Fenton, who represents the citizens group.
As the lawsuit proceeds, jail construction that was planned to begin in spring continues to be delayed.
Four county residents – part of the Allen County Residents Against the Jail group – filed a lawsuit in the Indiana Tax Court in late March alleging county officials broke two state statutes by using the Allen County Courthouse in the lease agreement for the $316 million jail project planned on 70 acres at 2911 Meyer Road.
The Allen County commissioners’ attorney in the case, Mark Crandley, asked the judge to set a court order bond from the petitioners for the damages and costs the lawsuit will cause. The court filing asks the bond be set between $43.2 million to more than $91.6 million, based on an analysis of anticipated delay costs.
The lease-purchase agreement with the Allen County Indiana Building Corp. – formed by the commissioners – would be responsible for issuing and repaying bonds and overseeing construction of the new building.
The courthouse is being used as a placeholder until the new jail facility is built because the county can’t make payments for a building that doesn’t exist. Chris Cloud, commissioners’ chief of staff, has said this is a normal procedure allowed by state statute.
The new jail project was approved as the long-term solution in a 2020 lawsuit filed by the American Civil Liberties Union of Indiana and a former inmate alleging a lack of medical attention and overcrowding. A federal judge ruled in 2022 for county officials to address the unconstitutional conditions in the current jail.
The four petitioners – Alice Luebke, Tina Hughes, Amanda Scheitlin and Ann Cornewell – are asking the tax court to invalidate any lease entered or contemplated by the Allen County commissioners and the building corporation and to terminate any lease arrangement involving the courthouse.
Fenton said he believes county officials violated the law and are “pushing around” ordinary citizens in the process.
If Special Judge Heather Welch orders the bond, it’s different from bonds required in criminal cases, Fenton said. A public lawsuit bond must be paid in full within 10 days of the court order or the case is dismissed, according to state law.
Welch approved two hearings for the tax court lawsuit. The first was held Wednesday about the bond court order. Both parties presented evidence on whether the lawsuit has merit. If the citizens group doesn’t have merit – sufficient evidence – for the argument, the bond will be set.
Crandley said at Wednesday’s hearing the Department of Local Government Finance already ruled the lease agreement to be lawful.
Allen County Residents Against the Jail filed a case this year with the Indiana Department of Local Government Finance to investigate the project’s lease agreement. The department ruled the lease was financially viable.
Crandley did not respond to a request to comment by Friday afternoon.
If a bond is ordered, Allen County Residents Against the Jail cannot raise the money to pay it, Fenton said. But they would have 10 days to appeal the order to the state Supreme Court. The county officials would also be allowed to appeal if they believe the bond should be set or be higher than what is decided.
The Indiana Supreme Court can delay the bond order while they make a decision and set or modify the bond, according to state law.
After the bond issue is settled, if the citizens group loses the lawsuit, it would appeal that decision to the higher court, too, Fenton said. If the county loses, it also has the right to appeal.
The Indiana Supreme Court might say they aren’t interested and agree with the lower court decision, or the case may go before the justices, he added.
“We need the (Indiana) Supreme Court to settle the issue,” Fenton said. “Because, … if, in fact, other counties do the same thing, you can see a wave of ‘We don’t have any money for this project? Well, we’ll just take our courthouse and put a big mortgage on it.’ ”
Welch will make her decision on the bond order by July 12 but said at the hearing she intends to file her decision soon.
The second hearing on the merits of the case is scheduled for 10 a.m. Aug. 9.
