The collapse of Mid-America Brick in 2013 continues to impact the city of Mexico, which is now on the hook to cover the annual bond assessment of approximately $150,000.

Abacus Industrial Holdings, owners of the old A.P. Green Firebrick plant location, failed to meet its obligation to make payments, leaving the city responsible. Last year the city won a judgement in the amount of almost $1.7 million plus daily interest against Abacus that also had not been paid.

Last month the Sheriff’s Office seized the property, which was put up for auction at the Audrain County Courthouse on Tuesday, after The Ledger’s press deadline.

According to Mexico City Manager Bruce Slagle, the city continues to pursue legal options against Abacus for the annual bond assessment.

The Neighborhood Improvement Bond dates back to 2010 and was part of the incentive package to get Mid-America Brick & Structural Clay Products in operation at the A.P. Green location.

Neighborhood Improvement Bonds function similar to loans from the city, to be repaid by the property owner through annual payments.

Mid-America Brick filed for bankruptcy in 2013.

When Abacus purchased the plant site they assumed responsibility for making the bond payments.

“They have not continued that obligation,” Slagle said.

Since 2010, the city has included funds in the budget to cover potential missing payments. In January of last year, when Abacus Managing Director John Pacheco informed the city no payments would be made, the council approved transfer of almost $155,000 from the Economic Development Fund to the Mid-America Brick Neighborhood Improvement Bond fund.

The city had included $158,600 in the annual budget to cover the estimated payment due from Abacus. At the Jan. 25 meeting of the Mexico City County, Slagle had planned to ask for approval to amend the 2020-21 fiscal year budget, moving $42,000 from the Economic Development Fund to the MAB NIB fund.

Payments on the bond include annual interest and principle, so the amount can vary. Slagle was able to inform the council that no budget changes were required for this fiscal year.

“We thought we would need to make adjustments,” he explained. “But we don’t need to change anything now.”

The bond assessment obligation is due March 1.

Since the closure of A.P. Green, the plot of industrial land has been troubled. Mid-America Brick filed for bankruptcy in 2013 listing estimated liabilities of up to $50 million. Shamrock Assets purchased the land at a court auction that year for $5.2 million, announcing plans to manufacture ceramic proppants at the site.

Ceramic proppants are used in hydraulic fracturing, or fracking.

But those plans went nowhere and Shamrock sold off parcels to several entities, including Abacus.

Contractors have been dismantling the old plant site that was put up for auction yesterday.