Floyd County commissioners approve $50,000 settlement to resolve disputed tax‑sale for former 'Digital Library' parcel

The Floyd County Board of Commissioners unanimously approved an agreed entry and order resolving litigation tied to a disputed tax sale for a parcel discussed in the meeting as the Digital Library property. County Attorney Rick Fox outlined a timeline that began with the tax sale in October 2023 and culminated in negotiations that yielded a $50,000 settlement offer from the purchaser, Sabre Investments, which the board accepted.

Fox told the board that notices were mailed in the sale process but "three of those four were never delivered," and that the county's legal team believed it had a strong case but that cumulative litigation costs could exceed the settlement amount. Auditor Diana Topping described internal reviews and system changes after discovery of the error: "My tax manager is who brought the request for tax deed to everyone's attention in November and I'm incredibly thankful for his attention to detail." She said the county implemented a new tax system and consolidated government-owned property addresses to prevent similar errors.

Commissioner Jason Sharp moved to approve the agreed entry and order; Frank Loop seconded the motion, which passed unanimously. The settlement will be paid from roughly $87,000 in excess property-sale receipts collected in 2024, per the board discussion. Commissioners emphasized that, while they believed the county had legal defenses, the county chose to resolve the matter to avoid continued litigation costs and public uncertainty.