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Cornerstone State Bank defends its record as council presses bank over stalled school‑bond negotiations and half‑ballfield sale
Summary
Cornerstone State Bank representatives told the council the bank has worked with the city for decades and denies acting in bad faith; council members said months‑long negotiation delays over sale of a portion of school property (and whether to preserve a contiguous baseball field) have left the EDA and council considering foreclosure or other next steps.
Representatives of Cornerstone State Bank appeared at the Nov. 25 meeting to respond to criticism from council members and the public about stalled negotiations over former school property that had served as bond collateral.
Sue, identified in the meeting as the bank’s president, read a prepared statement outlining the bank’s long relationship with the city and said the bank revised payment terms at the city’s request in prior years. The bank described a negotiation over the sale of part of the former school property used as collateral and said the city’s offer — supplemented by a $25,000 contribution from the local baseball association — reached $31,630 for three acres of ballfield, while the city said surveying and related parcel costs would bring a buyer’s total closer to roughly $48,000–$50,000.
"Cornerstone Bank remains committed to the city now and its residents," the bank’s statement said.
Council members and residents pushed the bank on the length of the negotiations and questioned whether the bank’s response time was reasonable. Several council members said prolonged delays and what they perceived as a lack of good‑faith negotiation left the city with few options, including foreclosure; the council and the EDA previously considered adding $25,000 to the offer, a three‑to‑two EDA recommendation that did not carry at council.
Council discussion also focused on preserving the baseball field as contiguous parkland rather than leaving the city with half a field. Members said they have spent municipal funds maintaining the property while negotiations dragged on, and some urged staff to report back on the foreclosure timeline and whether the city should take control of maintenance responsibilities (keys, boiler upkeep) if the property moves toward foreclosure.
What’s next: council asked the bank and city attorney for updates on the foreclosure status and directed staff to coordinate on maintenance and potential sale options if the bank proceeds toward foreclosure or if the city takes other action to resolve the property’s future.
