The City of Guthrie was prepared to take possession of the old Banner school building late last week, but a bankruptcy has postponed the cleanup.
The City and property owner of Banner, Larry and Michelle Ladd, came to a settlement agreement regarding the old school building last November in district court. In part, the Ladds, who purchased the building, agreed to abate the property within 120 days. Related story: Agreement reached on cleaning up old Banner school
Within days of the March 23 deadline, the property saw minimal cleanup. Court records show the Ladds were given a citation for contempt of court on April 5. One week later, attorney Dustin J. Hopson entered as the Ladd’s new attorney of record.
The City issued five citations before filing their case in court in March 2015.
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According to City Manager Bruce Johnson, the City had an agreement to take ownership of the building and land.
“We had an agreement for Mr. Ladd and his wife to turn the property over to the community and at that point in time the City would go out and demolish the property,” Johnson said in a city council workshop.
Johnson informed council members, the Ladd’s filed for bankruptcy. Court papers show the bankruptcy was filed on May 10 in bankruptcy court.
“This delays everything,” City Attorney Randel Shadid said.
Shadid says the Ladd’s attorney tell him they still want to do the deal with the city, but says the bankruptcy complicates it.
Both parties were scheduled to be in court on Friday, but was put on hold and the contempt citation was put on hold pending the bankruptcy case.
The building was set on fire by teens in the early morning hours of May 9, 2014. The teens, who were taken into custody shortly after, also broke into Cotteral Elementary and piled up approximately $2,400 worth of damages.
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