GREEN BAY, Wis. (WBAY) - The city of Green Bay will pay $2.5 million to settle a lawsuit over a proposed waste-to-energy plant.
An agreement document obtained by Action 2 News details the settlement between the city and Oneida Seven Generations Corporation and Green Bay Renewable Energy LLC.
The settlement said the city was to pay $800,000 before Jan. 31. The rest of the settlement must be paid no later than June 30, 2018.
The Oneida Seven Generation Corp. agreed to dismiss the lawsuit against the city in the U.S. Seventh Circuit Court of Appeals once the full payment is made.
Oneida Seven Generations Corp. and Green Bay Renewable Energy claimed the city violated their rights and due process by revoking a conditional use permit for a facility that would turn solid waste into electricity.
The plant was to be built on Hurlbut Street.
Green Bay's Common Council initially approved the Oneida Seven Generations Corp. permit in 2011. The Department of Natural Resources and Department of Energy also gave approval.
However, citizen opposition to the plant and its smoke stacks grew, and the Common Council accused OSCG of making misrepresentations about the plant. The council decided to rescind the permit.
OSGC filed suit trying to recover $5.2 million in expenses for development of the plant, and $16 million in potential lost profits.
A federal judge dismissed the civil case, but it was taken to the U.S. Court of Appeals.
Green Bay's Finance Committee is expected to discuss the funding of the settlement at an upcoming meeting.
Oneida Seven Generations Corporation released this statement:
"Earlier this year, Oneida Seven Generations Corporation (OSGC) entered into a court-ordered mediation process with the City of Green Bay.
We are pleased to share that, as a result of that process, we reached a settlement with the City that provides OSGC with $2.5 million toward the losses it incurred as a result of the City’s decision to revoke the Conditional Use Permit for the planned waste-to-energy facility.
While we believe building the facility would have brought significant benefit to the community, we are pleased to have reached an agreement with the City that enables both parties to move on."