GLWA, city of Highland Park reach interim agreement over water bill debt
HIGHLAND PARK, Mich. (CBS DETROIT) - The Great Lakes Water Authority and the city of Highland Park reached an interim agreement, including $24 million owed to GLWA for unpaid water and wastewater services.
Under the agreement, the city will pay $1 million by June 9 which will be applied to the $24 million judgment in the 2014 case or a final settlement if one is reached. Additionally, the $24 million will accrue interest until the amount is paid, according to a press release.
Officials say after paying the $1 million, the city can request a stay -- or a temporary suspension on legal proceedings -- until Oct. 1. However, the stay will be lifted if the city does not make the payment by Friday and GLWA may then enforce the judgment. The city assessor would be required to place the judgment on the city's tax rolls.
This comes after the Michigan Supreme Court ruled in favor of GLWA, ordering the city to pay more than $20 million in unpaid water bills. In April, the Highland Park City Council passed a resolution for an expedited bankruptcy.
Other agreements include:
- GLWA and Highland Park will request a stay of the 2020 case (for monies owed post-2014) and an adjournment of the trial currently scheduled to begin in July) until on or after December 5, 2023 (on a date to be set by the court).
- GLWA and Highland Park understand the state of Michigan intends to file a position statement with the court in the 2014 case stating its support of the stay of the proceedings and explaining why the State is involved and intends to participate in efforts to resolve this matter and reach a final, comprehensive solution to all issues.
In a statement on Monday, GLWA CEO Suzanne Coffey said: "I am pleased that we have been able to reach this interim agreement with the city of Highland Park. I am confident the effort exhibited by all parties, which has allowed us to get to this interim step, will carry forward and move us toward a more comprehensive solution for our region. In addition, we appreciate the state of Michigan's desire and intention to participate in the process moving forward, as they are key to any long-term solution."