A legal dispute between FS, Inc. and the Jefferson County Conservation Board stemming from a campground construction bid in early 2024 is continuing through the Iowa court system after an initial ruling in the county’s favor.
The lawsuit centers on the Prairie Ridge Campground Development project, for which bids were opened during a Jefferson County Conservation Board meeting on February 28th, 2024. According to court documents, FS, Inc., an Iowa-based construction headquartered in West Burlington, submitted the lowest bid for the project—approximately $70,000 less than the next lowest bidder.
Court filings state the Conservation Board initially awarded the contract to FS. However, the board later indicated it would revoke that award, citing an issue with the bid bond submitted by FS. The bond was five percent of the bid amount rather than ten percent.
In its petition, FS argued that a five percent bid bond is permissible under Iowa Code Chapter 26.8 and that the Conservation Board was aware of the bond amount at the time the contract was awarded. The company further stated it was willing to correct any bond discrepancy if necessary.
FS filed a Petition at Equity for Action of Mandamus in Jefferson County District Court on March 15th, 2024, asking the court to compel the Conservation Board to honor the original contract award and prevent the project from being given to another contractor. The petition argued that revoking the award would not only harm FS, but also negatively impact county taxpayers by increasing project costs.
“The paramount purpose of Iowa Code Chapter 26—the protection of the public as taxpayers—would be impaired if this statute should be interpreted in a way which would force the Jefferson County taxpayers to pay $70,000 more for construction of the project,” the petition states.
The defendants named in the lawsuit include the Jefferson County Conservation Board and its individual members: Terri Diers, Cory Klehm, Gene Parker, Gavin Stever, and Molly Mosinski.
The case was ultimately decided in district court, where FS’s claims were unsuccessful. Jefferson County Attorney Chauncey Moulding explained the current status of the case.
“This is a matter where a contracting firm failed to file the necessary bid security when bidding for a construction project for the Conservation Board several years back,” Moulding said. “They were aggrieved that the project was not awarded to them. They sued and lost in district court early in 2025 and have appealed that ruling.”
Moulding added that the appeal did not advance to the state’s highest court.
“The appeal was not accepted or retained by the Iowa Supreme Court and has been kicked down to the Iowa Court of Appeals for further proceedings,” he said. “A hearing date has not been set.”
FS declined to comment further on the ongoing litigation. In a statement provided by project coordinator Jen Jordan, the company said, “Our attorneys are handling the situation, and we will not be providing further comment on the matter.”
The case now awaits scheduling before the Iowa Court of Appeals, where the district court’s ruling will be reviewed.
