A RESOLUTION RELEASING MORTGAGES FOR THE DAVID A. & DELORIS E. LEATHERBERRY LIVING TRUST

Pursuant to Wis Stat. § 295.12(3)(g) and codified in Wis. Admin. Code NR 135.40(4) and in Ch. 24 Sauk County Nonmetallic Mining Reclamation Ordinance, all operators of nonmetallic mining sites shall prepare and submit a proof of financial assurance for reclamation by a bond or alternate financial assurance.  Alternate financial assurances may include, but are not limited to cash, certificates of deposit, irrevocable letters of credit, irrevocable trusts, established escrow accounts, demonstration of financial responsibility by meeting net worth requirements, or government securities.

The David A. & Deloris E. Leatherberry Living Trust operates a nonmetallic mine in the Town of Baraboo. Pursuant to Ch. 7 Sauk County Zoning Ordinance, the Sauk County Board of Adjustment approved a Special Exception Permit (SP-11-2013) to continue the operation of a nonmetallic mine for five (5) years on June 28, 2013.  As a condition, SP-11-2013 included the requirement that financial assurance be secured for reclamation.  This financial assurance took the form of a mortgage between ‘Leatherberry’ and ‘Sauk County’ in the amount of $100,000 and was recorded as Document No. 1118114 attached hereto as Exhibit A.  This mortgage was recorded with Sauk County’s consent and approval.

Pursuant to Ch. 7 Sauk County Zoning Ordinance, the Sauk County Board of Adjustment approved a Special Exception Permit (SP-01-2019) to continue the operation of a nonmetallic mine for (5) years on January 24, 2019.  As condition, SP-01-2019 included the requirement that financial assurance be secured for reclamation in a form that complies with Wisconsin Statutes, Administrative Code and Ch. 24 Sauk County Nonmetallic Mining Reclamation Ordinance. As deemed by the Wisconsin Department of Natural Resources mortgage is not considered a form of financial assurance that complies.  A mortgage may be considered it is held by a financial institution to enable said institution to issue an irrevocable letter of credit.  On June 20, 2019 a mortgage between ‘Leatherberry’ and ‘Sauk County’ in the amount of $266,000 was recorded as Document No. 1181724 attached hereto as Exhibit B.  This mortgage was recorded without Sauk County’s consent or approval.

The Sauk County Land Resources and Environment Department calculated that the financial assurance required to reclaim the nonmetallic mining operation at $266,500 and requested that ‘Leatherberry’ provide said assurance in the form of an irrevocable letter of credit to comply with Wisconsin and County laws regarding the matter.  On June 15, 2020 ‘Leatherberry’ recorded a mortgage against Leatherberry’s property with Prevail Bank in the amount of $266,500 as Document No. 1199471 and subsequently provided an irrevocable letter of credit from Prevail Bank, dated June 10, 2020 to Sauk County for the same amount attached hereto as Exhibit C.

Sauk County is now in receipt of a lawful form of financial assurance in the form of an irrevocable letter of credit and is fully protected should the county need to exercise its ability to reclaim the nonmetallic mining site. Therefore, the mortgages referenced above are of no value to Sauk County and are a hindrance to Leatherberry and should be released by the ‘mortgagee’ who is Sauk County.