A man who borrowed money from the town of Westminster to renovate what ultimately became a failed slaughterhouse is now on the hook for the more than $545,000 that the town says it’s owed.
Daniel Mandich, of Walpole, New Hampshire, who owned the now-defunct Westminster Meats, agreed this week to the six-figure settlement, after he failed to pay back the money he borrowed to open the facility. The case was heard in in Cheshire Court in Keene, New Hampshire.
Mandich’s misadventure in meatpacking began in 2010, when he borrowed $600,000 to renovate an existing building into a USDA-certified meat and poultry processing facility, according to court documents.
The loan was secured by Mandich at former Gov. Jim Douglas’ urging, according to a 2009 press release. Douglas stepped in on Mandich’s behalf, securing expedited approval for a $648,000 state Agency of Commerce and Community Development grant to Westminster, which the town loaned him on favorable terms to open the facility.
But from early on, the business struggled to stay afloat, court documents show. As early as 2011, an email from the town’s counsel identified Mandich as being “substantially” in debt. In 2013, Mandich missed his first payment to the town.
Then in 2014, things got much worse for Mandich: his facility was hit with an $11,000 fine from the Agency of Natural Resources for untreated wastewater from his livestock slaughter operation that was being sent straight into public waterways. In 2017, he got hit with another fine — this time from the Attorney General’s Office: $86,000 for similar violations.
That summer, a foreclosure sale for the building was first advertised — and in 2018, the town filed suit for the money that Mandich owed.
Mandich asked for the case to be dismissed, alleging that the statute of limitations had passed, rendering the claim invalid, according to the settlement agreement.
He said the 2011 email from the town’s counsel noting his “substantial” debt made it clear that the six-year statute of limitations had passed well before the town made its claim in 2018.
The town, however, objected, arguing that the period for the statute of limitations did not begin until 2015, and thus had not run out by the time it made its claim. The court ruled in the town’s favor.
Since Mandich had taken out two mortgages on the facility, through Mascoma Bank, the bank could sell the property as it saw fit, according to the agreement. But when it was bought at public auction, the proceeds were not more than the total from the mortgages, leaving the town with no revenue from the sale — despite the fact that the slaughterhouse’s property and equipment were used as collateral in the loan.
Now, though, they expect to get back all the money — plus interest, attorneys fees and expenses — that Mandich owes.
In the settlement agreement, the court noted that it was unclear how the town reached the $516,000 base figure that it said Mandich owes. The judge ruled that a hearing will be set at a later date to determine the correct amount.
Read the story on VTDigger here: Westminster slaughterhouse settles with town over $500K-plus debt.