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Oronoko
settles sewer dispute
South Bend Tribune
- 5/15
An
out-of-court settlement worth $520,000 has been reached in the
lawsuit filed against Oronoko Charter Township by the village
of Berrien Springs for the township's breach of a municipal sewer
project contract, officials said Wednesday.
The
suit was set to go to trial in September.
Township
and village officials hammered out the agreement during an all-day
facilitation session held Tuesday at Lake Michigan College's Mendel
Center in Benton Harbor. The session was mediated by Grand Rapids
attorney Jon Muth.
According
to a joint statement, "both parties believe the settlement
terms are fair and reasonable to all concerned" and are looking
forward "to working together now and in the future to improve
the quality of life for all village and township residents."
"It's
a relief to have it over with," said Oronoko Township Supervisor
Ernest Hildebrandt, whose seven-member board voted unanimously
to accept the settlement.
"I
hope we continue to have a good working relationship with the
village."
Under
the settlement, Oronoko Township will pay Berrien Springs in three
installments out of its general treasury, Hildebrandt said.
The
first payment of $180,000 is due in 14 days. It will be followed
by two $170,000 installments, one of which will be due within
60 days of the first payment. The other must be paid within 30
days of the second payment.
Oronoko
Township Trustee Philipp Riess says that when the two sides began
negotiations, they were "quite a ways apart."
"But
they came slowly down and we came slowly up," he said. "When
everything was said and done everyone was shaking hands."
The
suit stems from controversy regarding a waste-water treatment
plant project proposed by Berrien Springs in 2001.
Initially,
Oronoko Township agreed to shoulder a $2.8 million share of the
project but backed out of the deal in December.
In
an attempt to force the township to comply with the original contract,
the village sued the township in June 2002.
However,
Berrien Trial Judge Lynda Tolen declined to enforce the agreement
and recommended that Berrien Springs seek monetary damages to
compensate for the breach.
The
village then sued for about $3 million in damages to offset the
financial losses it incurred. Those losses including a $2 million
grant that was canceled when the township joined the project and
the plant capacity was increased from 450,000 gallons to 750,000.
Berrien
Springs village officials were unavailable for comment Wednesday.
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