Town Committee Approves Ordinance to Settle South Avenue Parking Garage Lawsuit

After declaring he would vote no, Mayor Daniel Achenbach voted in favor of an ordinance allocating $650,000 to settle with Cranford Building Associates for the Cranford Crossing parking garage.

The ordinance, in its final reading, needed four votes to pass, so Achenbach begrudgingly changed his vote to pass the ordinance to “make the process easier for the next committee,” he said.

“We should have settled,” Achenbach said,” I know I’ll hear about changing my vote, but I’m voting with the caveat that the 2012 committee needs to file in court."

Commissioner of Public Affairs Mark Dugan was not present at the meeting.

Commissioners David Robinson, Edward O’Malley and Deputy Mayor Kevin Campbell voted in favor of the measure without hesitation.

The settlement stems from a lawsuit brought against Cranford by Cranford Building Associates over the terms of the contract for the parking garage construction after the garage on South Avenue cost more than expected.

The town said they entered the agreement believing the builders were responsible for any cost that exceeded the original budget, but Cranford Building Associates sued saying the town is responsible for the full bill.

In September, a $250,000 settlement was presented to both parties, but not everyone signed it, leaving it open for the contractor to ask fore more in the settlement – at one point asking for more than $1 million.

The settlement was negotiated down to $650,000, which was approved by the committee in the forms of bonds or notes of the township.

Campbell admitted it is not the best situation for the town, but he said the issue needs to be settled to move on and to prevent further action against the town in the future.