Published May 14, 2008 11:18 pm - Local developer David Inman, managing partner of Wyngate LLC, has filed a lawsuit against the Limestone County Water and Sewer Authority claiming the water board is holding up his sale of lots by refusing to sign off on his subdivision plat because he won’t pay $250,000 for offsite infrastructure.
Inman said the water board is trying to enforce policies to which he did not agree and which were enacted after a board engineer already approved the water and sewer systems in his development.
Suit filed against water board
By Karen Middleton
karen@athensnews-courier.com
Local developer David Inman, managing partner of Wyngate LLC, has filed a lawsuit against the Limestone County Water and Sewer Authority claiming the water board is holding up his sale of lots by refusing to sign off on his subdivision plat because he won’t pay $250,000 for offsite infrastructure.
Inman said the water board is trying to enforce policies to which he did not agree and which were enacted after a board engineer already approved the water and sewer systems in his development.
“Out position is that there was no verbal or written agreement,” said Florence attorney Joel Hamner, who is representing Inman in the complaint that alleges breach of implied contract, fraud and interference with contractual relationships. “My client had no idea these demands would be made.”
The first indication Inman had that he was supposed to pay $250,000 to connect to the authority-run Johnson Elementary School sewage-treatment plant was Feb. 18 letter from Tim Mitchell, who was then LCWSA planning and construction manager, Hamner said.
In the letter, Mitchell wrote: “The contribution of LCWSA towards these improvements will be in accordance with our agreement for a 50/50 cost share for the construction of the offsite force main. The developer’s estimated share for these improvements is $250,000.”
The improvements required before the water board would sign off on the Wyngate subdivision plat are 17,000 feet of 6-inch force main and an onsite lift station.
Inman says in his complaint that when he began development of the subdivision off Alabama 251 in 2006, he considered installing sewer but decided against it due to the cost and the lack of nearby sewer lines. Instead, he decided to install septic tanks on each lot.
“Following the decision not to install the subdivision-wide sewer system, the developer was contacted by LCWSA and informed that it would be overtaking operation of the sewage-disposal plant located at Johnson Elementary School located off Alabama 251, approximately three miles from the subdivision,” it says in the statement of facts portion of the complaint. “During subsequent meetings with LCWSA, a request was made that the developer reconsider the installation of community-wide sewer system within the subdivision.”
Hamner said Inman installed the sewer system and a wet well into which the sewage would drain for subsequent pumping out and hauling to the Johnson treatment plant. The complaint said that in April 2007, LCWSA inspected and approved the Wyngate water system, and in May 2007 inspected and approved the sewer system.
Inman paid a $59,000 impact fee to LCWSA.
However, on July 27,2007, the water board passed a policy that says developers are responsible for not only impact fees but also infrastructure improvements. On Jan. 24, 2008, the water board passed a policy requiring the LCWSA engineer of record to inspect and approve all plans and materials for the project before the authority accepts it.
“What it all boils down to is a subdivision that my client can’t sell,” Hamner said. “Everything is approved, but he can’t sell lots. He is losing money on construction costs and interest payments.”
Hamner has filed a 29-item request for production of documents in which he asks for all records from January 2005 to the present, not only as pertaining to Wyngate but to any other subdivision the water board has approved.
Number 16 specifically requests “copies of every subdivision plat…wherein the developer or contractor was also a board member, officer, or employee of the LCWSA.”
Number 29 requests copies of “grievances, complaints, claims of ethical violations, or accusations of potential ethical violations that have been made against the LCWSA, including but not limited to its agents, representatives, board members, directors, or employees, beginning in January 2005 through the present date.”