2 Minutes 02-28-13 Meeting - Laserfiche WebLink

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South Bend Redevelopment Commission Regular Meeting — February 28, 2013 6. NEW BUSINESS B. Airport Economic Development Area (1) Commission approval requested for Confidential Settlement Agreement related to environmental claims at the former Studebaker Corporation property Ms. Kolata noted that our environmental attorneys, Plews Shadley Racher & Braun, have negotiated a Confidential Settlement Agreement with Cooper Industries LLC and their insurers related to environmental claims made by the Commission concerning the former Studebaker Corporation property. Cooper and its insurers are willing to pay the Commission and the City of South Bend an amount that has been approved by our Legal Department to settle this claim. This Agreement covers Cooper Industries LLC and its insurers and settles all claims related to this matter. Staff recommends approval of this Confidential Settlement Agreement. Ms. Kolata added that the lawsuit was filed in 2003, against Studebaker Corporation. That became a lawsuit against Cooper Industries LLC because they had purchased much of Studebaker and were the successor. It has been a very difficult negotiation. There is also an ongoing lawsuit with Oliver Industrial Park and we have had several settlements already and there is one outstanding that should be brought before the Redevelopment Commission within the next 30 days. The effort to reach the agreement on the negotiations and collect money from the companies that have caused the environmental problems has been difficult. Plews Shadley Racher & Braun has been super with a good working relationship but also stick- to -it- iveness. With us today is Thao Nguyen, who is one of the prime litigators, Dan Cory who was able to research where the equipment was within the building that caused the pollution that caused the problem. There is documentation with photos showing where certain degreasers were and the resulting problems in the soil. Also from Indianapolis, In., George Plews, the head of the firm, a wonderful person and negotiator to work with, and managing partner Jeff Featherstone who has been a very key player in all of the negotiations. The team that came together over the years included: Chuck Leone from City Attorney, and now, Aladean DeRose. We are asking the Redevelopment Commission to sign an agreement that you are not seeing. Staff recognizes that is an unusual request, but we hope we will eventually be able to share an amount, not for a specific agreement but the total of all agreements. Mr. Alford noted that in his three or four years of being on the Redevelopment Commission, this is the first confidential document that has come before the Commission. Ms. Kolata responded that it has happened before; however, the most recent time may have been in 2010, related to the Oliver Plow Works case. Mr. Vamer noted that at some point there will be an allocation of these funds which will indicate the amount that has been received. Ms. Kolata responded that one of the advantages is that the appropriation will be a composite of all the settlements; we won't know who put in what, and how much was put in by any one settlement.