Money dispute in proposed Wisconsin sand mine back to court

A disagreement that has delayed a proposed sand mine near Camp Douglas, Camp Douglas, Juneau County, Wisconsin, is set for a County Circuit Court hearing in February.

The mine also faces objections from the village board of Camp Douglas.

“There are still a lot of people who do not want the mine,” said Randy Hoeth, a member of the Camp 

Douglas board, which last spring passed a non-binding resolution against the mine project. Around the same time that resolution passed, the financing of the mine began to unravel and led to a foreclosure lawsuit.

The proposed developer is Shadowland Holdings, a Wisconsin division of a Texas mining company. The project’s financier was identified in court documents as Global Proppant Supply, which had at one point agreed to supply a $45 million line of credit to Shadowland Holdings.

According to the foreclosure suit filed by Global Proppant Supply, Global had agreed to loan Shadowland $8 million at first to develop the sand mine, however, Global claimed in the suit that when a mortgage payment on the loan was due on April 10, 2014, Shadowland was scheduled to pay $653,735, but paid only $500,000. 

That shortfall led Global to file a foreclosure suit on their behalf and against the people who had sold their land to Shadowland. Meanwhile, Shadowland claimed that the shortfall in the payment was not enough to justify foreclosure.

Shadowland has made several attempts to have the suit dismissed, and the next hearing on the motions will be in Juneau County Circuit Court on February 17.

At one point in 2013, the Juneau County Board considered issuing $65 million in bonds to Shadowland, but ultimately rejected the proposal.

Objections in Camp Douglas reflected worries that the sand mine might damage the area’s water table because of extraction of material from underground. The Camp Douglas board could not take direct action against the mine because the property was not in the village, but instead in the neighboring township of Orange, near the Juneau County-Monroe County line.

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