Dairy Dandy Drive-In

Dairy Dandy Drive-In in Sheldon.

SHELDON—The former owner of Dairy Dandy Drive-In in Sheldon will be forced to repay a loan she took out the acquire the local landmark after a lawsuit was filed against her.

In October, the Sheldon Chamber and Development Corporation filed a lawsuit against Cindy Elgersma of Sheldon in O’Brien County District Court in Primghar after she stopped making payments on a $25,000 loan following her acquisition of Dairy Dandy, according to court documents.

Elgersma purchased the business on contract for $172,000 from former longtime owners Bob “Burger Bob” and Hazel Sundstrom in March 2015; however, by March 2018 the business had returned to the Sundstroms’ ownership.

In October 2019, the Sundstroms sold the business to Chelsea Hakeneis for $115,000, according to county land records.

When reached for comment on the lawsuit, Elgersma said she no comment at this time.

Terms of the five-year $25,000 SCDC loan provided to Elgersma included a 4 percent interest rate and monthly payments of $461.41 starting on April 16, 2015, with a final payment set for March 16, 2020.

As collateral for the loan, Elgersma and her then-boyfriend Damian Perkins — whose name was attached to the initial petition but later removed — pledged a 2006 Dodge Charger, two Harley-Davidson motorcycles and a 1977 Chevrolet Camaro.

On July 13, 2018, about four months after Dairy Dandy was returned to the Sundstroms, the SCDC sent a letter to Elgersma asking for a $2,762.46 payment by Aug. 16, 2018, to bring her account current.

Elgersma was served a notice from the SCDC on Oct. 30, 2019, which was followed by a mailed notice on Nov. 22.

The unpaid balance on the loan was $11,026.27 coupled with a 12 percent interest rate for defaulting and the costs of bringing the lawsuit forth increased the debt to $13,466.04, according to court documents.

Whorley Heidman Law Firm of Sheldon, which represented the SCDC in the lawsuit, estimated the cost of its legal work in the matter to be at about $3,400.

Third District Judge Nancy Whittenburg ruled in favor of the SCDC on Dec. 31, noting Elgersma never responded to any of the petitions filed against her.

As part of her judgment, Whittenburg ordered Elgersma to repay the SCDC $16,866.04 plus court costs and added a 3.58 percent interest rate until the debt is paid in full.