TERRE HAUTE — An agreement in principal was approved Friday that would end a lawsuit against Ivy Tech Community College for repair to its former airport campus building at the Terre Haute International Airport-Hulman Field.
Tornadoes in February 2006, and heavy winds in April 2006, damaged the 88,000 square-foot building’s roof, leading to water and mold damage.
In a unanimous vote during a special session, the Terre Haute Airport Authority approved, subject to a formal agreement and release, to accept a $1.5 million offer from Federal Insurance Co., resolving a lawsuit the airport filed over repair costs to the building.
The airport previously received a check of $1.076 million from Ivy Tech’s insurance company. However, that did not cover more than $2.5 million in estimated repair costs, leading the Airport Authority to file a lawsuit in 2007 against Ivy Tech and its insurance company.
“We went through a 10-hour mediation session earlier this week and we were not able to reach any kind of agreement at that meeting. But both sides exchanged their final and best numbers and the number before us is $1.5 million of new money to resolve the case,” Airport Attorney Scott Craig told the board Friday.
“We also explored over the last 48 hours or 36 hours to see if there was anymore room there and had not received anymore money, so I think we played that hand and were not successful,” Craig said.
The attorney said he will contact Federal Insurance Co. about the board’s action, and he expects to a have a formal agreement for the board’s approval during it’s next scheduled meeting Nov. 18.
The agreement would release all parties in the lawsuit from all claims, Craig said. The defendants in the lawsuit are Federal Insurance Co., Ivy Tech and Gregory & Appel Inc., an insurance broker for Ivy Tech.
John Adkins, executive director of administration for Ivy Tech’s Wabash Valley Region, contacted after the meeting, said the college had been hopeful an agreement would be reached.
“We’re thrilled to death. It has been hanging over everybody’s head and I think it is good for both us and the airport to put this behind us and move on. It’s time, and I hope everyone will be happy with the settlement,” Adkins said.
Darryl Huyett, president of the Airport Authority’s board of directors, said after the meeting the airport has spent about $900,000 from the first insurance payment for repair on the structure. The lawsuit was filed to seek additional repairs to the interior of the building, he said.
Huyett said repair costs could exceed what the airport will receive, but said he felt “it is time to move on. We may not want to configure the [interior of the] building like Ivy Tech had it as there may be other tenants that want something different.
“We do have more than one interested party that we are talking to about the building. The interior has non-load bearing walls, which could be moved around,” to suit space of a future tenant or tenants, Huyett said. The building includes about 20,000 square feet as a hangar, once used to teach students about aircraft engine repair.
Howard Greninger can be reached at (812) 231-4204 or howard.greninger@tribstar.com.
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Airport accepts Ivy Tech lawsuit settlement
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