North Huntingdon commissioners have voted, 4-3, to accept $25,000 from Cleveland-based Terra Group, representing WD Investors Ltd., for improvements to Norwin Avenue.
It was less than township officials had hoped to obtain, but it keeps the matter out of court and allows WD to proceed with development.
The company is developing a 9-acre tract near the Route 30 East-Norwin Avenue entrance to Norwin Hills shopping center that will be occupied by a relocated Jiffy Lube, already under construction, and four other businesses, including a possible pharmacy.
That development was proposed in late 2005 and, following several revisions, was eventually approved by township officials.
In discussion, commissioners expressed concern about potential increased traffic from the WD development, the existing shopping center and a Wal-Mart/Mills Pointe retail center proposed by developer DeBartolo Development/Irwin.
A grading permit, however, was issued to WD and site preparation has been ongoing for almost six months.
But, when asked, the township declined to sign a level of service waiver from the Pennsylvania Department of Transportation that would have allowed for infrastructure improvements.
A level of service waiver eases the requirement that a developer maintain the same level of service or better on a road at the site of a development, and calls for the municipality to accept responsibility for improvements.
Township Solicitor Bruce Dice said North Huntingdon officials wanted to negotiate with the developer to "contribute more toward the cost of improvements."
Terra Group appealed the denial in Westmoreland County Court of Common Pleas, and sought a judicial order forcing the township to grant the level-of-service waiver.
Township planning director/engineer Andy Blenko said: "When DeBartolo was involved in discussions regarding traffic impact of the proposed projects, their people estimated the cost of such infrastructure modifications at about $75,000."
On Sept. 17, Commissioners Dave Herold, Angelo Furlin, Don Austin and Anthony Martino favored the settlement, which averted an Oct. 22 trial before Judge Daniel J. Ackerman. Richard Gray, Fred Patter and Lee Moffatt dissented.
Mr. Herold, the board president, said: "After considering advice of Solicitor Dice and the potential ramifications if we did not get a favorable ruling in court, I feel the board's action is in the best interests of the township."
Under terms of the settlement, the township will grant a level-of-service waiver and accept $25,000 from the developer to offset costs associated with the expansion of Norwin Avenue and the relocation of a related storm drain.
"I don't like it," Mr. Gray said. "We have to be the only municipality in this state ever to sign off on a level of service waiver for PennDOT."
"This is not good for the township," Mr. Moffatt said. "I don't feel $25,000 will even cover the improvements. What if the cost does reach $75,000? Really, we don't know how much the township will be paying."
"We got half a loaf," Mr. Dice said. "In my opinion, the risk is that if you roll the dice, you might lose everything. You never know how the judge is going to rule. It's better to take part of the pie and walk away."
Mr. Furlin said: "If this thing went to court, there was a chance that the township would have gotten nothing."