If you’ve heard about the Mishawaka Fieldhouse developer being sued in federal court, you might wonder just how the city is an alleged victim. We talked with Mishawaka Common Council President Gregg Hixenbaugh, who's also an attorney.
Hixenbaugh says he expects the council and city administration will next have attorneys determine how to protect the city’s interests.
In a civil lawsuit filed in Florida, the U.S. Justice Department says James “Andy” Card, owner of Card & Associates, used about $2.2 million from the fieldhouse project to buy a waterfront home. The city hired Card to build and operate the fieldhouse.
So how is the city a victim? The fieldhouse was completed and is being used daily for everything from pickleball to travel sports, contractors have been paid, and debt payments are current on the $38 million in bonds sold to build it.
Hixenbaugh says the city’s agreement with Card’s firm requires the debt to be paid from its incremental property taxes and facility operating revenue.
“Number one that funding could have been used to pay for additional costs associated with the fieldhouse project. If there were no such additional costs, then that additional funding would have been available to be applied to pay the principal and interest on the outstanding bonds, in effect paying this off sooner and saving interest costs.”
