BOISE COUNTY -- The Boise County Board of Commissioners announced Tuesday the county will file for Chapter 9 bankruptcy after losing a $4 million judgment over a proposed treatment center for teens.
The board has determined it will not able to satisfy the judgment in the case Alamar Ranch v. Boise County, and their constitutional and statutory obligations.
A federal jury sided with the Boise-based development firm Oaas-Laney.
Oaas-Laney sought zoning approval in 2007 to build Alamar Ranch, a 72-bed private residential treatment facility and private school that would have treated teens with emotional or substance abuse problems.
Oaas-Laney sued Boise County last year in a federal lawsuit, saying county commissioners violated the Fair Housing Act when they rejected the proposal because of neighborhood opposition.
The county has appealed the judgment award.
Additionally, Boise County must pay attorney fees. The developers are asking for $1.4 million, but the court has not yet determined the amount that will be paid.
Developers said they will move to have the judgment executed and will seek the county's operating cash to satisfy the judgment.
Boise County has said in order to keep the county running they will file for Chapter 9 and seek relief through the bankruptcy process.