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Requesting the appropriation of $5,155,479.11 from the Unreserved Fund Balance ("Free Cash") to the Judgments & Settlements Account, to fund the settlement of Prospect Iron & Steel v. Somerville Redevelopment Authority.
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Official Text
To the Honorable Board:
I respectfully request an appropriation of $5,155,479.11 from the Unreserved Fund Balance ("Free Cash") to the Judgments and Settlements Account for the purpose of funding a settlement reached by the parties in the matter of Prospect Iron & Steel v. Somerville Redevelopment Authority ("SRA").
The settlement arises out of an eminent domain taking of property on the D-2 Block on May 29, 2013. At the time of taking, the SRA paid a pro tanto amount of $3,165,000 for approximately 2.08 acres of property owned by Prospect Iron and its related companies. The settlement provides for payment, by December 31, 2018, of an additional $5,000,000, plus 5% interest from the date of entry of the order of dismissal, for a total land acquisition cost of $8,165,000.
The calculation of the total payment owed on December 31, 2018 is $5,155,479.11.
I am attaching a memo written by Special Counsel, Eileen McGettigan explaining this settlement previously submitted to your Honorable Board on June 21, 2018.
My staff will be available to address any questions you may have. Thank you for your consideration of this item.
Respectfully Submitted,
Joseph A. Curtatone, Mayor