LEGALLY BLUNT | April 24, 2008
Way back in 2005-2006, our then Mayor McFadden took a stand against “Sterling Place" and its plan to exercise its right (based on a 1953 agreement) to tap into Tuxedo Park’s water supply. As you may know, Sterling Place is a proposed 63 lot development whose parcel abuts the North end of our Village.
Mr. McFadden’s position to deny water access while at the same time openly attempting to buy out the Sterling property, triggered stiff and immediate law suits against the Village in both State Supreme Court and U.S. District Court. The Supreme Court ruled that Mayor McFadden and the Village Board acted in “an arbitrary and capricious manner” in their decision to refuse water to the Development. Despite monumental legal expenses, the Village lost, but McFadden bluntly appealed.
Now, after another year of fruitless legal expenditures, our new administration has stemmed the cash hemorrhage.
In what amounts to a peaceable settlement, our Trustees, primarily Larry Darby and Houston Stebbins, have negotiated to withdraw our Village’s appeal of judgement in N.Y. Supreme Court, while Sterling discontinues its suit against the Village and Trustees in U.S. District Court.
The down-side of the agreement is that the Village of Tuxedo Park must provide potable water service to about 60 new homes in Sterling Place. However, our purification plant appears able to satisfy this added demand.
To the positive ledger, Sterling residents will pay the Village water rate plus a surcharge of up to 16%. Further, Sterling will construct the necessary water mains and connections; then dedicate these assets to the V.T.P. At no charge, Sterling will also transfer title for lots 29, 30 and 31 to Tuxedo Park with a $25,000 landscaping and screening stipend.
Most beneficial to our beleaguered infrastructure budget is a lump sum payment of $350,000 from Sterling to the Village. These funds are ear-marked for our Wee Wah dam repairs which are sorely needed.
Attendees at the April Board of Trustees meeting were evidently very pleased with this intricate resolution since the Board, and especially Mr. Darby, received a resounding ovation.
Most important, our attendant draconian legal bills will finally cease!
TPFYI applauds the Mayor and Trustees for negotiating and ratifying this mostly favorable settlement.
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