Appanoose County Attorney opposes Honey Creek transfer

Appanoose County Attorney Ty Stewart has advised against accepting the transfer of Honey Creek Resort from the state. He shared this recommendation with the Board of Supervisors on Monday. Stewart's review of various agreements led him to conclude that taking control could expose the county to significant financial and legal risks. Stewart noted that state officials claim the transfer involves "virtually no risk." However, he highlighted potential unknowns that could still result in liability for the county. He emphasized that while the proposal may seem safe now, it could pose real risks down the line. One major concern is that the current agreement makes the state responsible for the resort’s infrastructure, such as its sewer and water systems. If the county takes over, these obligations would shift to them. Stewart warned that even if everything appears fine, unexpected costs could arise that would burden the county. State officials have said that there is a provision allowing the county to return the resort to the state if necessary. Still, Stewart cautioned that legal challenges could occur, potentially putting the county in a difficult position. He mentioned that state negotiators could not fully protect the county from responsibility due to constitutional limits. The state is looking to transfer management of the resort to Appanoose County as part of a broader plan to privatize the facility. Honey Creek Resort is located on about 750 acres, with portions leased from federal land. The resort was intended to boost tourism in Iowa and was completed in 2008. Despite concerns, Chairman Jeff Kulmatycki of the Board of Supervisors said he is still interested in the idea of privatization but wants to ensure the county is not liable for hidden costs. He believes keeping the resort operational and on the tax rolls is important for the community. Recent financial data indicates that Honey Creek Resort has been self-sustaining since 2015, although it previously needed extra funding. In an audit covering the first eight months of 2023, the resort generated nearly $1.7 million in room rentals but reported a slight operational loss. Further audit reports are expected for a complete assessment of the resort's financial health.