By Bob Peryea
CORRESPONDENT
City of Lake Geneva officials have reluctantly released the memorandum of understanding that details the city’s agreement with Geneva Ridge Joint Venture in a dispute over a development proposal.
The memo, which was signed June 13, 2011, shows the city’s insurer paid Geneva Ridge $2.1 million to release the city and several city officials from its pending lawsuit.
Geneva Ridge purchased and attempted to develop 718 acres south of Lake Geneva, known locally as the Hummel property, but failed to gain approval of the City’s Plan Commission and Common Council. The company then filed suit against the city in an attempt to recoup its loses.
The city had previously denied requests to release the memo.
In a letter addressed to Attorney Thomas Shriner of Milwaukee, the city’s attorney in the matter, Joseph Wirth, also of Milwaukee, maintains that this the information in the memorandum “amount to confidential communications protected by both Wisconsin statute and by federal code.”
City Clerk Mike Hawes, in an email forwarding the memorandum and attorney’s letter, stated, “As you can see from Mr. Wirth’s letter, it has never been the City’s intention to withhold the letter from the public. However, the City has always maintained – and continues to maintain – that it is not a public document.”
The memorandum states Geneva Ridge will receive the payment whether or not the city decided to allow the company to develop the land. Ultimately, the city decided not to allow the expansion.
Geneva Ridge has since put the land up for sale and appears to no longer be doing business in the State.
In the memo, Lake Geneva agreed to review its “Smart Growth” plan, a plan for the growth and expansion of the city, being sure to include the property owned by Geneva Ridge.
The city did review the “Smart Growth” plan, but did not amend it.
The release of the memorandum was prompted by a lawsuit by Care for Lake Geneva, a local community group that had been thwarted in its efforts to receive the memorandum.
The group’s president, Casey Schiche, said in a press release, that the group and residents were concerned about “a secret deal” between Geneva Ridge and the city.
“Our attorneys are evaluating (the memorandum),” Schiche said. “We are not making comments on this new information at this time.”
In essence, the memorandum details how the city will hold votes and conduct all necessary proceedings to review its “Smart Growth” plan, and pay the $2.1 million, all in consideration for Geneva Ridge dropping its lawsuit against the City.
Ultimately, while the city did not amend its “Smart Growth” plan, Geneva Ridge did receive $2.1 million and did release the city from legal action.
