SYRACUSE -- Almost $160,000 has been paid to a developer in accordance with a finalized settlement agreement to resolve litigation.
Woodside Homes Corporation filed a lawsuit against the city in 2nd Judicial District Court in Davis County regarding an improvement payback agreement dated March 3, 1999. The agreement was between the city and Woodside for development of land in Syracuse on Freemont Estates subdivision.
A settlement of $158,623.57 has been reached in the matter, Syracuse City Finance Manager Amber Fowles said. The settlement will be paid using a combination of storm water, roads and culinary water impact fees, she said.
The city's settlement with Woodside Homes is unrelated to the issue the city is dealing with regarding its negative balance with its park impact fees, Syracuse Mayor Jamie Nagle said.
The settlement was reached through mediation, which saved the city significant legal costs it would not have had the money to pay, Nagle said.
Attempts to reach someone with Woodside Homes were unsuccessful.
Syracuse City Administrator Rodger Worthen said the dispute involved roughly $240,000 worth of reimbursements. The initial agreement, approved in 1999 and discussed in summer 2008, had a 10-year expiration on it.
When the city received the bill in 2008, Worthen said, Syracuse did not agree with the roughly $153,000 the developer wanted reimbursed for a storm drain as well as a few other issues.
He said the developers would have had to put in a minimum-size storm drain anyway, therefore the city felt that $66,359 should be omitted according to cost estimates for that required line.
"We have always taken the standpoint that development should pay for itself," he said.
However, he said, the developer disagreed and that is where the suit came from.
There was a court-ordered mediation June 21, 2010, a move Worthen said saved the city roughly $20,000 in attorney fees. The city council gave final approval to the settlement agreement on July 13 following a closed meeting to discuss the details.
Syracuse paid Woodside $158,623.57 within 30 days from the city council's July 13th approval. The city met its obligations with regard to payment and other terms of the contract.
"We are pleased we could have an agreement with them," Worthen said. "This is finally settled."
Officially, the funds for payment are being considered as an addition to the fiscal year 2010-2011 budget.
A public hearing is scheduled Sept. 14 to consider this change.
As part of the agreement, both parties agreed to stipulation and joint motion for dismissal with prejudice. Both parties are bearing responsibility for their own attorneys' fees and costs.
It states that the settlement is not an admission of fault or liability on either party, but a good faith effort to resolve any issues.
Councilman Larry Shingleton said the issue was a misunderstanding. He explained that each party had differing ideas of what the agreement was.
"Both parties sat down and hashed it out," Shingleton said. "We found what was fair for both of us."
Councilman Alan Clark said residents should know that city officials are working on streamlining the contract process so issues like this don't arise in the future.
He added, "We want to ensure all contracts are in line and being reviewed as they should be."
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