Local Business Owner Sues Lincoln County Port Authority for Alleged Secret Deals and Legal Violations

Libby, MT – Local businessman Daniel Torgison is taking legal steps against the Lincoln County Port Authority, claiming violations of public participation and open meeting mandates, as outlined by Montana laws. Torgison, a former owner of the Switchback Bar and Grill, filed a lawsuit through attorney Amy Guth, alleging clandestine transactions particularly focused on a land deal involving 185 acres sold by the Port Authority to Noble Investment Properties, Inc. in 2023.

The legal accusation, brought forward earlier this month, suggests that the deal was not only fiscally questionable but also lacked the requisite public engagement and transparency. According to the lawsuit, such exclusive dealings have stirred unease among local businesses over potential favoritism.

Further probing into the Port Authority’s operations reveals that unlike typical governmental bodies, it operates a separate bank account and does not lodge its budget with the county’s Clerk and Recorder’s office, as is customary. Concerns were also raised regarding the availability of employment pay records and the audit processes; the last known audit occurred back in 2021 despite annual audits being stated as routine by county Commissioner Brent Teske.

The lawsuit highlights a range of purported infractions including the lack of proper notifications about meeting times and venues. These procedural lapses have allegedly sidelined the local community from participating or voicing opinions in the Port Authority’s decision-making processes. It is noted, that the meeting schedules and board member details are buried within a lesser-accessed section of the county website.

Leadership of the Port Authority Board includes former county commissioner Jerry Bennett and includes members Kevin Peck, Chris Bache, and Tony Petrusha, with Commissioner Brent Teske acting as the board’s county representative. Recent minutes from a county commissioner meeting on July 17, 2024, confirmed the appointment of Bennett and Peck as at-large citizen members following board recommendations.

Libby officials faced requests for comment on these allegations. While new Port Authority Executive Director Kate Stephens did not provide a statement, Commissioner Noel Duram expressed his concern and intention to delve deeper into the issues flagged by Torgison, especially considering his recent election and unfamiliarity with the prior actions in question. The County Attorney, Marcia Boris, noted that it is standard policy not to discuss ongoing litigation publicly.

This lawsuit also alleges a gap in public communications, accusing both Lincoln County and the Port Authority of failing to adequately publicize meeting agendas and maintain updated minutes on the county’s website since May 2022, contrasting with the practice observed for other county boards.

In a quest for transparency, Torgison had attempted to secure documents detailing the Port Authority’s recent property transactions but faced hurdles, receiving only partial disclosures following intense legal requests. Additionally, the transaction with Noble Investment Properties showed that after adjustments for property enhancements and grants, the real estate was acquired at a significantly reduced price per acre than the market value.

The origins of the current dispute trace back to Torgison’s involvement in previous regional business activities and his ongoing legal engagement against Libby city over a contract dispute related to municipal infrastructure.

Both Amy Guth, who represents Torgison and was a founding member of the Port Authority, and her client maintain deep roots in local business and governance, suggesting their grievances are informed by insider knowledge of systemic operational issues.

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