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Avondale Settles Development Lawsuit For $37,500
A five-year lawsuit from a development company is nearly over for Avondale. In September, a jury ruled in the city’s favor.
The claim, brought by Winners Development and several property owners, asked for $62 million in damages from the city.
That comes after Avondale worked with the company on a plan for a downtown commercial area in 2011, which was scrapped after a land appraisal. Because there was no contract, the city says there was no basis to sue.
The original development plans would have included an outlet mall and retail on Avondale Boulevard.
Kevin Artz is an assistant city manager with Avondale.
“The city determined it just wasn’t financially feasible, it wasn’t going to work," Artz said. "The land contracts were double what the land appraised for.”
He said it's a relief to end the lawsuit after years of litigation.
“It’s been a big burden for the last five years, just having the $62 million lawsuit out there and so we’ve been very happy to have it go to a jury trial and have it come back in our favor,” he said.
The city will agree to pay the company $37,500 through its insurer as part of the settlement at next week’s council meeting.