Developer will receive $1.5 million in settlement with Kent

Taken from: www.lohud.com/apps/pbcs.dll/article

By Michael Risinit • mrisinit@lohud.com • August 17, 2009

KENT - The developer of hundreds of planned townhomes in Kent will receive $1.5 million and up to 16 years of tax abatements as part of its legal settlement with the town over the project's construction delays.

The Town Board last month approved settling the Kent Manor case. Details of the damages remained under a gag order imposed by state Supreme Court Justice Andrew O'Rourke until last week. A copy of the settlement agreement was filed Friday in the Putnam County Clerk's office.

"I think the Town Board is relieved to have this case behind us. Now we can move forward with the town's business," Supervisor Kathy Doherty said today.

The town's insurance carrier will pay $1.25 million and the remainder of the cash judgement will come from the town's coffers.

The damages stemmed from Kent not allowing the townhome project to proceed, even after several court decisions over the years said otherwise. First approved in 1987 with 318 units, the project has been reduced to 269 homes.

Lawyers for the developers had vowed to seek millions because of expenses incurred during that time, including the elimination of some units because of new wetlands laws, the reopening of the environmental review process and missing out on the real estate boom. In a statement, the Town Board said it disagreed with the court rulings that held it liable for delays encountered by the project.

Lawyers for the town and the developers were not immediately available for comment.