The Town of Lost Rabbit lease fees paid - MSNewsNow.com - Jackson, MS

The Town of Lost Rabbit lease fees paid

Posted: Updated:
MADISON COUNTY, MS (Mississippi News Now) -

WLBT News has learned some $100,000 dollars in overdue lease fees for the upscale Madison County development, the Town of Lost Rabbit, have been paid by Allstate Insurance Company of Illinois.

Reservoir manager John Sigman confirmed the payment. The money was due on the financially troubled property last September.

Lost Rabbit, LLC never paid the lease fees.

In 2008, Allstate purchased $18.6 million dollars in bonds through Butler Snow and Baker Donelson law firms. Money that financed the Madison County subdivision.

On July 15, Allstate filed a federal lawsuit demanding to void and rescind its purchase of the bond. But that lawsuit was abruptly dropped in July.

Allstate claims the firms misrepresented claims about the "public improvement district or PID" and failed to reveal errors in its formation.

Butler, Snow issued a statement saying, "The suit had no merit and we asked that it be dropped."

Copyright 2011 WLBT. All rights reserved.

Powered by WorldNow