Vacant Glenwood factory may fund Red Oak demolition

 At first glance, the two buildings couldn’t be more dissimilar. 

One was a church built in the 19th century and sits on a small lot near downtown, the other a factory, built nearly 100 years later on 5.6 acres in an industrial section of town. 

And the two buildings are located in separate towns, in separate counties, separated by 30 miles. 

But what may differentiate them the most is their assessed value: the former church, about $6,500, the manufacturing plant, a little more than $455,000. 

Yet, they have one common denominator that Red Oak City officials are counting on will save them more than $25,000: The Chairman of the Nebraska Republican Party. 

As first reported last week in the Red Oak Express, J.L. Spray, a Lincoln attorney and leader of Nebraska’s Republican Party, will likely be sued by the City of Red Oak for the demolition costs of the vacated church located at 411 E. Hammond.

Spray purchased the building sight unseen at a tax sale in April 2012 and has stated the City Council’s attempt at recovering demolition costs, estimated at $25,000, will be “a waste of taxpayer’s money.”

County Attorney Bruce Swanson, who is representing the City, disagrees, specifically citing Section 364.22 of Iowa Code.

“It is quite broad but it does grant the city broad authority to seek remedy against violators against certain ordinances,” Swanson said. “So I’m trying to stretch this into saying it is costing the city this and the city wants it back.”

Spray said all the City can do is foreclose on the property. 

“Their recourse is against the property, not the owner,” he said. “I will convey the property to the city right now and we will be done with this.”

Swanson and the City though are hoping they can place a lien and collect damages against Kirojen LLC, which owns not only the property in Red Oak, but the former TraJet manufacturing plant in Glenwood. 

Located at 503 Railroad Ave., the building was used for the manufacturing of whirpoool/hot tubs as recently as 2013, Glenwood City Administrator Brian Kissell said. 

And while tractor-trailer traffic is a common sight at the plant, Kissell said the condition of the building is questionable. 

“The administrative offices are destroyed,” he said. “There is significant roof damage, to the point that when it rains, it rains directly into the offices.” 

Kissell said he was in that facility about a year ago when Glenwood was in the process of opening a new City Hall. 

“We were contacted about purchasing some of the office equipment,” Kissell said. “But it was so water damaged, there was no way I could put it in a new city hall.”

However, Kissell said the building is extremely large and that the manufacturing portion of it remains in good shape. He said the city hopes to develop the property which sits on a rail spur. 

Spray and Kirojen LLC acquired a 90 percent ownership stake in the building Feb. 23, 2012. John Arnold purchased the original 90 percent share Dec. 28, 2011 for $31,000, and transferred it to the Kirojen LLC at no cost two months later. 

Charles and Shelly Fabian own the remaining 10 percent share. 

In addition to the Glenwood factory, Kirojen LLC and J.L. Spray are also listed as the owner of a residence on 3rd Avenue in Red Oak. The property was purchased in 2011 at a tax sale and has an assessed value of $3,090. 

Current real estate taxes are paid on that building and the factory, but Spray has not paid taxes on the 411 E. Hamm