Township offers $900,000 for GIBC lawsuit payment
Published: Friday, October 16, 2009
By Lena Khzouz Magyar
The township will offer $900,000 to the Grosse Ile Bridge Co. as partial payment for attorney fees involving a toll bridge lawsuit.
The partial payment is being made on the anticipated costs of settling a dispute over legal fees resulting from the township’s loss in the GIBC condemnation case, which began in 2003.
After a closed executive session, held from 7 to about 8:45 p.m. during a regularly scheduled township board meeting, the trustees unanimously approved the partial payment during the open meeting.
Township Supervisor Brian Loftus said the township would continue to appeal the assessment in the toll bridge case unless the GIBC accepts the $900,000 as full payment.
“We’re hoping that will serve to settle the lawsuit,” Loftus said.
The money would be borrowed from the township’s Open Space acquisition fund and repaid from the general fund with 2 percent interest over a 10-year period.
“We have idle funds in the Open Space acquisition account … that we don’t plan on accessing anytime soon,” Loftus said.
He said that is allowed as long as the money is paid back to the original account with interest. The plan is to pay $100,000 per year back to the Open Space acquisition account, he said.
The original lawsuit began in 2003 when the township tried to take the toll bridge from the GIBC through eminent domain.
The toll bridge at the northern end of the island has been owned by the Smoke family for generations.
The only other road to the island is the Wayne County-owned free bridge. closer to the southern end of the island.
When trying to take the bridge, township leaders had said that they wanted control of the bridge for the safety of the island’s residents, being that the toll bridge is one of the only two access points to Grosse Ile.
That part of the suit was in court for several years, with the ultimate ruling in the bridge company’s favor.
Wayne County Circuit Judge Susan Borman ruled this year that the township owed the GIBC nearly $1.4 million for attorney fees, but the township is appealing that ruling.
State law provides for interest payments in appealed attorney’s fees after a judgment has been rendered.
As a result, since March 6, the township has been potentially liable for interest accruing on the debt of nearly $1.4 million at a rate of 5 percent per year, or about $70,000 annually. Paying the $900,000 would help lower the amount of interest, officials said.
The normal timeframe for such an appeal is about 18 months, so the township is expecting a verdict from the appeals court in about a year, although it could come sooner or later, Loftus said.
Greg Karmazin, GIBC spokesman, said their attorneys are aware of the township's action and will make a decision.
http://detnews.com/article/20091111/METRO05/911110411
November 11, 2009
Grosse Ile's free bridge to fully open Friday
THE DETROIT NEWS
Grosse Ile -- After being partially closed since Monday, the free Grosse Ile Bridge will be fully opened again on Friday afternoon.
Wayne County has been closing the bridge from 8:30 a.m. until 3:30 p.m. every day this week for sidewalk repairs. The bridge will be closed for that same time period today, Thursday and Friday.
The bridge is open for traffic before 8:30 a.m. and after 3:30 p.m., according to the Wayne County Department of Public Services. During the closures, traffic will be diverted to the Grosse Ile toll bridge north of the free bridge.
The Grosse Ile Bridge Co. will collect the tolls during those days from traffic traveling on and off the island. The toll for automobiles, pickup trucks, SUV, vans and motorcycles is $1.50 each direction for those with a bridge pass, $1.80 for drivers with tokens and a $2 cash fare for others.
Posted at 01:00 PM in County Bridge Closure Information, News & Commentary | Permalink