The financial issues pertaining to the Twin Lakes Family Wellness Center continue to be hashed out, yet still unresolved at presstime, following correspondence relayed to local officials in late May.

Letters from attorney David Choate as well as Jesse Stockton, President of the Wellness Center board, were forwarded to the city and county–with Choate’s letter dated May 21 and Stockton’s response on May 30.

Attorney Choate represents local businessman Weldon Haddix, owner of Haddix Gas and Electric Company, which recently filed a lien against the Wellness Center due to a debt for propane that has accumulated to over $60,000.00, The lien was filed in late April in the County Clerk’s Office.

Since the letters were delivered, no official actions have been taken by any entity, but both attorney’s expressed ideas and a willingness to resolve the issue without having to continue with further litigation.

Choate’s letter reads as follows:

“I met with Weldon Haddix earlier this week and he has authorized me to file suit against the County of Clinton as well as Twin Lakes Family Wellness Center, Inc. as a result of non-payment of gas applied to the Wellness Center at the request of both the county and the Wellness Center in the approximate sum of $67,000,00 plus legal fees, court costs, etc. I will be working on this lawsuit and would expect same to be filed within the next 30 days.

It is my understanding that there are loan funds available at 0 percent interest which could be secured to pay Mr. Haddix the indebtedness owed to him and, quite frankly, I am astounded that the county and the Wellness Center will not agree to a transaction of that nature.

It would appear to be quite simple for the Wellness Center to borrow these monies with the county to guarantee repayment to the lending institution by co-signing the note, with the Wellness Center thereafter repay the indebtedness borrowed directly to the lending institution. With no interest being charged on the loan the Wellness Center would have no problem with repayment of that indebtedness. In the alternative, the county could borrow the money at 0 percent interest and let the Wellness Center pay back the county on a monthly basis.

The county has in the past paid on behalf of the Wellness Center, including a partial payment to Mr. Haddix, and it is my understanding that Mr. Haddix was assured by the county that if he continued to supply gas that his indebtedness would in fact be paid.

Neither Mr. Haddix nor I desire to institute this litigation and deprive the citizens of Clinton County of the Wellness Center because I do believe that this litigation will end up closing the facility. Once judgment is secured against the facility, which I feel that it will be, that assets of the facility will be attached and bank accounts garnished, including membership dues that might be paid by the general public.

Obviously, Mr. Haddix, as a small businessman, cannot stand to lose the sum of $67,000.00 nor could any member of the fiscal court nor you or I.

Again, it would seem to me to be a prudent course of action for the county to find some way to see that Mr. Haddix is paid in full, or at least a reasonable settlement offer made to save this public facility which is a great benefit to the county.

I did want to advise you that Mr. Haddix has decided that he has no choice but to proceed with litigation.

Thank you for your time and consideration in this matter.”

Stockton’s letter of response reads:

“Please be advised the Board of Directors is in receipt of the letter sent by Mr. Choate dated May 21, 2014. It is the goal of the board to work with the county and Mr. Haddix to resolve the issue. If you are unaware, the Wellness Center has made great strides since February, 2013, and is now on a much stronger financial footing. Some examples are as follows:

1. Many past due bills have been paid (approximately $13,200.00).

2. The county generously paid $10,000 to South Kentucky RECC.

3. The building was converted to natural gas. The county was able to use the grant funds to lay the natural gas line. This will benefit the EMS building and the fire station.

4. The 24 hour access has now been implemented.

5. There is now financial stability in order to keep the pool heated on a continuing basis. This will maintain and increase membership.

6. There are three utility bills owed by the Wellness Center (water, electric and Haddix Gas). The center has on a monthly basis been reducing the arrearage on the water and electric bills.

It would be instructive for all parties to contemplate how we arrived at this moment. The board, along with assistance from citizens in our community, raised approximately $250,000.00 prior to the grant process. Much effort and time was spent obtaining a 501 (c) (3) non-profit designation so these funds would be tax exempt. The members of the board have personally donated monies and their time for almost nine years in overseeing that the center was built and seeing to it’s operation. No board member has ever received any compensation whatsoever. Once the grant process began, the construction of the center and the particulars of it’s construction were out of our hands. If not for the former Senate President and his position in state government, Clinton County would never have received the grant.

As all of you were informed at the public meeting, the board was in the red on the gas bill before we ever started because of the gas used by Alliance. Also, the price of gas propane) as charged by Mr. Haddix was about four times the price of natural gas. Moreover the vent for the boiler and the pool heater was installed incorrectly by Alliance or it’s subcontractors causing the heater to malfunction and burn more gas.

When the meeting occurred in May, 2013, the fiscal court on it’s own motion and volition wanted to pay Mr. Haddix $10,000.00. This may have made everyone on the court feel good, but it was a mistake because the entire issue regarding the gas bill should have been resolved before any monies were paid. Because of the interest that is being charged by Mr. Haddix, the bill is now greater than prior to the payment of $10,000.00.

If litigation occurs, it will be the board’s position that we are not in breach of the lease with the county due to the following reasons:

1. Propane gas was installed prior to the board taking possession. The board was never consulted or ever authorized the use of propane from Mr. Haddix.

2. The propane supply from Mr. Haddix was the most commercially unreasonable supply of energy that could have been obtained in Clinton County at that time.

3. The vents to the boiler and heater were installed incorrectly even though hundreds of thousands of dollars had been paid through the grant process to see that the systems in the building were installed correctly.

4. No assurances were made by the board to Mr. Haddix to pay all of the arrearage. Mr. Haddix had a duty to mitigate his damages.

5. The county paid Mr. Haddix $10,000.00 on the arrearage without making any arrangement with the board or Mr. Haddix to resolve this matter in it’s entirety.

It is not the intent of the board to be adversarial with the county or Mr. Haddix, but rather to point out these facts so that the fiscal court and Mr. Haddix will be aware of all the facts so everyone can be properly informed as regards to all factual and legal issues. Regardless of what happens, everyone must realize that this county was given a tremendous gift. That gift is now under the stewardship of the citizens of this community, it’s elected representatives and the board of the Wellness Center whom many citizens of this community placed their trust. The board intends to and wants to work with both parties to resolve this issue, but we are not able or willing to bear the full brunt of this indebtedness. Compromise will be required from all sides.

On a personal note from someone who has had the privilege of practicing law for the last twenty-four years, I am confident in saying if this matter is litigated and tried, all parties lose financially. But more importantly, the singular point that will be proven is that none of the parties are worthy of the gift we were given.”

The issue, including the letters, were brought to light at last Tuesday’s regular meeting of Albany City Council, with city attorney Norb Sohm just briefly discussing the matter and giving his opinion from the city’s standpoint.

No official litigation had been taken of any type as of presstime Tuesday, June 10, but the matter is expected to be on the agenda at the next Clinton County Fiscal Court meeting that is scheduled for next Thursday, June 19 at 5 p.m.