Derby accepts Ceruzzi’s settlement

Written by Susan Hunter
Tuesday, 27 October 2009 16:44

DERBY — The Board of Aldermen voted Oct. 22 to accept the $1.75 million compromise offer to settle the lawsuit Ceruzzi Derby Redevelopment Inc. filed in June 2008 seeking $25 million in damages and lost profits after the city broke the developer’s contract.

The offer Ceruzzi presented to the city includes money city officials know they owe the developer, said Board of Aldermen president Ken Hughes.

The developer demolished buildings and bought property in the downtown redevelopment zone.

“We feel it is in the best interest of the taxpayer to settle this case with the developer for $1.75 million,” Hughes said in a prepared statement. “This money will undoubtedly come back to us once we begin the development of our downtown. Based on the demands of the developer back in April 2008 totaling $4.5 million, the above settlement is a bargain.”

If the court recognizes the city’s acceptance of the offer, no further litigation will be necessary, officials said. As of Tuesday, city officials had received an acceptance from Ceruzzi, but not from the court, Hughes said.

Christopher Rooney, the attorney representing Ceruzzi, said the settlement “would put an end to a difficult time.”

City officials claimed Ceruzzi, partnering with Stoneridge Partners LLC, wasn’t adhering to its timetable regarding the $200 million project that was to revitalize 14 acres of an area south of Main Street.

The city filed its own lawsuit against Ceruzzi to force mediation, along with a declamatory judgment that ensured that a future development project wouldn’t be held up during litigation.

“We need to look to the future,” Hughes said. “We have a collaborative of developers interested in moving Derby forward, and we believe this is the proper way to approach downtown redevelopment, as the project is too big for one developer.

“We plan to learn from these past mistakes and are poised to make Derby’s downtown the center of business we all desire,” he said.