Schweitzer Back Taxes Paid

The county, schools and other taxing districts in Bonner County got an early Christmas present this week when U.S. Bank paid off Schweitzer Inc.’s back taxes.

The bank paid the county $854,269.33, which represents debts owed by Schweitzer Inc. and Pack River Ltd. from 1994 through the first half of 1998. Bonner County schools will get about $317,000 of that.

Pack River Ltd. still owes $19,140.71, but that’s on property not owned by U.S. Bank.

“It’s great,” said county Treasurer Shannon Syth. “I’m really happy.”

The long-awaited payment is the result of U.S. Bank’s purchase of Schweitzer Mountain Resort property with an $18 million credit bid in Tuesday’s U.S. Bankruptcy Court hearing.

To clear title to the property, the bank had to pay off the back taxes. Also, because the property was no longer a part of the bankruptcy proceedings, the county was free to move forward with auctioning it off.

“They were in jeopardy of us moving ahead with our tax deeding process,” Syth explained.

The payment helps keep the taxing districts’ bond rating in good standing. The fact that one of the county’s biggest taxpayers was not paying its taxes had put that bond rating at risk.

“It was a scary situation for a long time,” said a relieved Syth.

The county is not the first creditor to be paid as a result of the liquidation of Schweitzer and Pack River assets. The sale of 2,000 acres on Baldy Mountain to Stimson Lumber Co. last month for $1.8 million paid off at least two secured creditors, said Nancy Isserlis, an attorney representing the creditors committee in the bankruptcy proceedings.

Except for Bonner County, the creditors are receiving only a share of what they’re owed.

WHAT’S NEXT Harbor Properties hopes to conclude purchase of Schweitzer Mountain Resort from U.S. Bank. before the end of the year.