HomeMy WebLinkAboutOLD FREIGHT DEPOT PROPERTY THE PENSION PROPERTY RESOLUTION OF SETTLEMENT
Attachment number 1
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RESOLUTION OF SETTLEMENT
Claim of Augusta v. Norfolk Southern Railway for Contribution to its Expenses of
Remediation of the "Old Freight Depot Property" also known as "The Pension
Property" (511 Reynolds Street; Map 47-2 Parcel 3)
WHEREAS on November 20, 2007, the Commission approved an engagement letter
retaining the professional services of John C. Bell, Jr. and Stephen E. Shepard, on a
contingent fee basis, to prosecute a claim requiring Norfolk Southern Railway to pay a
portion of the City's expenses of cleaning the soil on the site known as the "Old Freight
Depot Property" also known as "The Pension Property".
WHEREAS Norfolk Southern Railway Company is the corporate successor in interest to
railroads using this site beginning in the 1800's and continuing until 1988 including the
Central of Georgia Railroad Company.
WHEREAS in addition to the depot facility, these railroads owned and operated or
authorized through leases, the operation of various facilities on the property related to
railroad operations including a cotton loading platform and a junkyard (Richmond Iron
and Metal Works).
WHEREAS the City Council of Augusta purchased the property from Southern Railway
in 1988. Title to the property was held by Augusta (successor by consolidation to the
City Council of Augusta) as Trustee under the 1949 Augusta Employees Retirement Act.
In 2005, Augusta purchased the property in its corporate name, "Augusta, Georgia".
WHEREAS Augusta has, through the Downtown Development Authority, offered the
property for sale to the Foxfield Group, Inc. for development of condominiums, the
"Watermark Project."
WHEREAS the sale was subject to inspection and testing of the property. Environmental
testing showed contamination of the soil including unacceptable levels of lead and other
heavy metals.
WHEREAS Counsel for the Norfolk Southern and Augusta have reached an agreement,
subject to the approval of the Commission, for Norfolk Southern to pay a compromise
amount of $750,000.00 to Augusta and Augusta will release its claim for remediation
expense contribution against Norfolk Southern.
WHEREAS after payment of attorney's fees and expenses Augusta would net
$500,000.00.
WHEREAS the Commission approved settlement of this claim in special called meeting
held January 12,2009.
Attachment number 1
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NOW THEREFORE BE IT RESOLVED that:
1) Settlement of this claim is approved by the Augusta-Richmond County Commission,
including receipt of gross proceeds of $750,000.00 to the escrow account of John C. Bell,
Jr., Attorney at Law and
2) Disbursement of attorney's fees under a contingent fee contract approved by the
Commission on November 20, 2007 in the amount of $250,000.00 for professional
services rendered is approved and
3) Disbursement of net proceeds of $500,000.00 to Augusta is approved; and
4) The Mayor or Mayor Pro-tem is hereby authorized to sign all settlement documents,
including a release agreement, necessary or convenient to the fulfillment of this
Resolution with all the documents to be approved by Augusta's attorneys in this matter in
consultation with Augusta's General Counsel.
Duly adopted this
Z. 1/''-I-
day of '" K,u (.,tltt f--(
2009.
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