Though residents protested at the meeting and in court, city leaders say they had to give up the land to settle a $70-million debt from a lost lawsuit with Sandstone.
The council decided to settle the case by giving away up to 95 acres of North Novi Park.
Novi's decision to just give away the park land to pay a lawsuit debt was rejected by Oakland County Circuit Court Judge John McDonald. The judge said the city was trying to sell park land, and that's illegal. However, the judge said the land could be redesignated under the master plan by the planning commissoin to allow the settlement.That's what happened Thursday.
Many of the commissioners are appointed by Mayor Richard Clark, who was in favor of the settlement.
Clark said last year that if the city had to raise taxes to pay the debt, residents would have to pay $237 more a year, on average.
The case started six years ago, when Sandstone was developing 100,000 sf of housing, commercial and related retail uses along the new Novi Road, just south of 13 Mile. The company accused the city of not developing the road in time, resulting in the project's downfall.
Sandstone sued and won in Oakland County Circuit Court in January 1999, and a judgment of $40-million was rendered against the city. That award was later amended to be about $33 million.
However, in September of that year, the court issued an additional judgment awarding interest, attorney fees and costs of more than $20 million. With 12% interest accruing since 1995, the cost of the judgment is now $70 million, the city attorney says.
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