ASD settles Park Avenue lawsuits for $2.5M

Amityville School District taxpayers are recouping $2.5 million for the $22.2 million renovations project for the Park Avenue Memorial School. The money is from a settlement on a lawsuit filed by the district against one of its construction management companies, Christa Construction, and its architect, Spector, as well as the bonding company for the roofer, Intercounty, which is no longer in business.

"Thiscloses a long and difficultchapter in the school's history, and we can now move forward and get the final papers to the New York State Education Department and get some of the building aid that is still outstanding on that project," said Superintendent of Schools John Williams. "In the meantime, the residents of Amityville have a beautiful new school building."

The renovation project on the historical building was initially authorized by voters in 2001 at a cost of $13 million. With costs escalating as a result of faulty workmanship, delays and legal fees, voters approved an additional $8 million. Another $1.2 million in surplus funds was added to that, bringing the total project to $22.2 million. Theproject was finally completed in the fall of 2004.

At the height of the controversy, the school board dismissed Christa saying that it had failed substantially to perform in accordance with its contractual obligations. The school district brought a lawsuit to recoup the $8 to $10 million it estimated taxpayers lost as a result of Christa's actions, as well as those of the other two companies, Spector and Intercounty.

Christa countersued the district for $13 million for failing to provide any factual basis or identify the reasons the district terminated its contract. Its attorney, Michael F. Dehmler of Ernstrom and Dreste, of Rochester, estimated that the company lost at least $10.9 million as a result of the district's actions.

"This settlement puts $2.5 million in the district's treasury and allows the district to file with the state and to finally determine the amount of aid that will be allowed," said John E. Osborn of Westchester and Manhattan, the district's attorney. "It stops all litigation, litigation costs and risks."

The district will receive the money in a one lump sum, said Osborn. Williams said the school board will meet to discuss how the funds will be spent. One option is to put it toward what Williams described as much-needed work on school building roofs. Another option would be to pay down some of the bonds for the Park Avenue project.

A call to School Board President Michele Sikhrangkur for comment on the settlement and how the board expects to use the money was not returned.

The case came before Justice Emily Pines and was set down for trial in July, 2008. At that time, Osborn said he was hoping that the two sides would be able to get together and reach a settlement.

She is one of the most knowledgeable judges about construction lawsuits and helped to make sure that all parties were serious about the settlement," said Osborn.