The City of Red Oak, and a company connected to the outgoing chairman of the Nebraska Republican Party have reached a settlement in a dispute over a now-demolished church the company owned in the city. According to the Omaha World-Herald, Kirojen LLC of Lincoln purchased a tax lien for the abandoned church at a tax sale in 2012. J.L. Spray, the GOP chairman, was listed in Iowa state records as the company’s president. The city later described the church as dangerous, with a sagging roof and broken windows, and it wanted Spray to pay to have it demolished.
Spray, an attorney in Lincoln, became Nebraska’s GOP chairman in 2013. He steps down this month at the end of his two-year term. Spray said it was the city’s responsibility to cover the cost. He has said information provided by Montgomery County during the tax sale made it appear the building was in better shape than it actually was. A court order last year authorized the city to tear down the church, built in 1890, on a 5,040-square-foot lot at Fifth and Hammond Streets. A contractor demolished the building in August and billed the city $19,000, according to court documents.
The city sued Kirojen to recoup its costs. Last week, Spray offered to pay $10,000 and to deed the property to Red Oak, according to the city. This week, the City Council voted 3-0 to accept the offer. Mayor Bill Billings said the city plans to put the property up for auction.