To avoid a $69-million judgment against the city, the Novi CityCouncil decided to settle a case with developers SandstoneAssociates by giving awayup to 95 acres of North Novi Park. MayorRichard Clark and members of the council said their hands are tied,and had hoped to resolve the situation without giving away publicland.
However, the cost of the lawsuit, compounding at 12% interest,is too much. Residents would have to pay $237 more a year in taxes,on average, if the city charged them to pay the debt.
The case started six years ago, when Sandstone was developing100,000 sf of housing, commercial and related retail uses along thenew Novi Road, just south of 13 Mile. The company accused the cityof not building the road intime, resulting in the project'sdownfall.
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