Developer files lawsuit against the city of Nixa for violating contract for two subdivisions

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Published: Jan. 20, 2023 at 4:15 PM CST|Updated: Jan. 20, 2023 at 7:19 PM CST
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NIXA, Mo. (KY3) - A development company has filed a lawsuit against the city of Nixa for failing to reimburse the company, according to federal court documents.

Court records say development company Galewood West Development, Inc. partnered with the Nixa Department of Public Works and the Planning and Development Department in 2002 to provide water and sewer services for a new subdivision called Daisy Falls.

The lawsuit states Galewood prepared a master drainage plan for the subdivision that would control all stormwater runoff.

Developing sewer lines with another subdivision, Dallas Trails, was also included in the project agreement between Galewood and Nixa.

Court records state Nixa was to pay Galewood for its services as well as for reimbursement of the infrastructure installation. After the construction and installation of the sewer projects, the lawsuit states Nixa failed to abide by the sanitary sewer line reimbursement policy.

The lawsuit states the sanitary sewer line reimbursement policy consisted of four steps:

  • Determine the maximum capacity of the offsite sewer line in gallons per day
  • Determine the final cost of the offsite sewer line
  • Divide the total cost of the offsite sewer line by the maximum capacity of the offsite sewer line to determine the cost of gallons per day
  • Required all persons connecting to the offsite sewer line to pay the installing person the product of their maximum daily flow and the cost per gallon per day

“As a result of Galewood’s performance, Galewood was granted a perpetual utility easement, as well as a sanitary sewer easement, notwithstanding a nominal payment at the onset of the initial connection to the lift station. The City of Nixa has permitted the connection to the lift station and the sewer line in derogation of Galewood’s easement and in violation of the City of Nixa’s agreement with Galewood. 19. The city of Nixa has allowed connection to developers, resulting in hundreds of users connected to the lift station, all without compensation or reimbursement to Galewood,” the lawsuit states.

Galewood is suing for violating the contract and says that the city owes them over $10,000,000 as well as damages that exceed several million more. The lawsuit states the matter in controversy exceeds $75,000.

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