The city of Dayton this week is expected to approve a $10.5 million payment from the operator of Stony Hollow Landfill to settle a longstanding dispute about fees.
Half of the money will go into the West Dayton development fund, which could provide a big boost for a section of the city that many believe desperately needs new investment.
“The monies received from the settlement will be dedicated to advance the city’s asset-development strategies in the Greater West Dayton area, including Southwest and Northwest land use areas,” said City Manager Shelley Dickstein.
The funding could be used for the adaptive reuse of buildings, housing rehab or redevelopment, commercial corridor facade grants and other inititaives focused on job creation, workforce development and neighborhood entrepreneurship, the city said.
On Wednesday, Dayton City Commissioners will decide whether to approve a settlement and mutual release agreement between the city and Waste Management.
Stony Hollow Landfill, located at 2460 S. Gettysburg Ave., is a subsidiary of Waste Management.
The settlement agreement calls for Waste Management to make two payments of $5.25 million each to the city to settle a dispute that dates back more than 28 years, before Stony Hollow Landfill was built.
Waste Management wanted to build and operate a solid waste landfill within city limits. The city rejected Waste Management’s rezoning request for the landfill project.
Waste Management initiated a federal lawsuit to force the rezoning, and the city and company in 1992 reached a settlement agreement and consent decree that called for certain payments to the city.
About 10 years later, the city asserted that Waste Management failed to pay annual “county-generated” fees that were required when the company had a contract with Montgomery County to accept its solid waste.
Waste Management claimed it was entitled to a refund of county-related fees, city documents indicate.
In 2003, Waste Management lost its contract to handle Montgomery County’s residential trash, which was projected to cost the city of Dayton $1.6 million in lost fees in the first year alone.
The city said Waste Management lost its county contract for 10 years but won it again a decade later, according to federal court documents. The city learned about the contract from a zoning request in 2015.
The city took legal action to try to receive payment for the county-generated fees.
Under the new settlement agreement, the city will considered its county-generated fees paid in full and will not seek county-generated fees in the future.
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