Greenwood appeals “sewer” suit with Bargersville

by: Dann Veldkamp Monday, November 30th, 2009

Earlier this month a judge ruled against Greenwood when it said that Bargersville could annex nearly three square miles of property along State Road 135. Monday the Greenwood Common Council, in a 6-1 vote, decided to appeal that ruling.

The short meeting opened with a statement from the city attorney, Shawna Koons, where she highlighted some aspects of the judges ruling she found worth questioning. There were three primary technical legal areas she brought before the Council for their consideration. First, that documents signed before a 2005 law were interpreted as if they were signed after the change in the law. Second, portions of the ruling were based on precedent out of the state of Montana and not Indiana. Third, that there is some alignment between the jurisdiction of sewer utility and a municipality; something that the Council will challenge with this appeal.

Council member Bruce Armstrong most clearly stated the reason for an appeal: The City of Greenwood already has $4.5-million invested in sewer facilities in the disputed area. If the ruling stands, this investment is lost with no potential to ever get the money back nor gain a return on that investment.  To-date the city has spent about $250-thousand in legal fees and the expectation is that the appeal will add between $50-thousand to $100-thousand to that total. This is a relatively small amount when compared with millions the city seeks to reclaim. In addition to these sunk costs, Brent Corey also highlighted the potential future tax revenue that the area is expected to generate for the municipality that controls the area.

Council member Ron Deer made a motion for the appeal, noting that we live in Indiana and not Montana. Brent Corey supported him with a second. Of the seven members on the Council only Ron Bates disented. The next steps are up to the City’s legal department.

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