North Adams, Freight Yard Pub Settle Parking Lawsuit
 The city has reached a settlement with the Freight Yard Pub over a parking lawsuit. |
NORTH ADAMS, Mass. — The Redevelopment Authority and its tenant Freight Yard Pub have reached a settlement after having "exhausted every appeal" over a lawsuit initiated by FYP in 2011.
The authority on Monday voted unanimously to pay the restaurant, operating as Bay State Hospitality Group Inc., a sum of $287,574.89; the restaurant agreed to place a sum of $42,416.62 in escrow to secure one year's payment of rent.
The board met briefly in executive session with attorneys John DeRosa and Richard Dohoney of Donovan & O'Connor LLP, the city's legal counsel, and Mayor Richard Alcombright to review the agreement.
Alcombright said the authority's vote confirmed the settlement but the City Council will also have a voice in that it will have to approve a borrowing of about $160,000 to help pay the bill.
The authority currently has about $167,000 in its account; of that, $130,000 will go toward the settlement, leaving $37,000 to prevent draining the account. The balance will be picked up by the city.
"The city has the responsibility to pay this bill," said the mayor, calculating the borrowing will be annualized at municipal rates over 10 years.
The city's insurer is covering the legal costs of the lawsuit and the countersuits.
The lawsuit was brought against the city authority and the state Department of Transportation over the loss of a parking area close to the restaurant that was fenced off for three years during the ongoing reconstruction of the Hadley Overpass. The parking restriction, which limited access to the restaurant and Western Gateway Heritage State Park, cost the business in excess of $666,000, according to documents filed with Berkshire Superior Court.
A jury last fall found the Redevelopment Authority failed in its covenant agreement with the restaurant to provide adequate parking at Heritage State Park, which the authority oversees. The pub was awarded $300,000, which was reduced by the jury's finding that the pub owed $83,000 in back rent, part of a countersuit by the authority.
The suit against MassDOT was dropped.
In a statement read to the board, the mayor said, "the city vigorously defended the lawsuit," including the cooperation of former Mayor John Barrett III, who was in office during the period in question, and by filing countersuits and appeals.
"We presented a strong defense to the merits of their claims," he said. "The jury, however, did not agree with us on all counts."
The mayor said he wanted to take a moment to thank DeRosa and Dohoney for their efforts. "These guys have worked really hard through what's been a long, long process," he said.
The suit was lengthy, with some 138 motions, amendments, claims and counterclaims filed over nearly three years, including after the completion of the trial in November.
Dohoney said the settlement figure takes into account the 12 percent interest accrual on the jury award calculated through Aug. 1, subtracting all the rent due the authority — the $80,000-plus awarded by the jury and the amount accumulated since then.
"I think what the Redeveopment Authority was happy to hear was that ... we weren't taking a bath on the rent," the mayor said.
The lawsuit has also been seen as an impediment to the redevelopment of the park. Alcombright said it wasn't a major factor but had been a frustrating obstacle.
Tags: Heritage State Park, lawsuit, redevelopment authority,
