In Bankruptcy Court: The water deal…and what they said about it in court

In Bankruptcy Court: The water deal…and what they said about it in court

photo (22)Because of the deal announced earlier today for a new regional water authority, attorneys for Oakland and Wayne counties said they would withdraw their objections to the Plan of Adjustment this afternoon. Macomb County will not.

That’s because it’s actually the Public Works Commissioner, Anthony Marrocco, who is objecting to the Plan of Adjustment…and it was County Executive Mark Hackel who signed off on the water deal.

Here’s the Detroit Free Press FAQ about the agreement.

“We are not prepared to waive our objections to the plan. We are having talks with the city,” said Allan Brilliant, an attorney for Macomb County. “We’re trying to resolve our remaining DWSD objections and we’re hopeful that will lead to a resolution of our issues. In the meantime we’re evaluating the Memo of Understanding which as (city attorney Heather) Lennox says has a lot of contingency that have to be resolved before it goes into effect and what effect it might have on our objections.”

Judge Steven Rhodes was clearly not happy.

“I’m not going to resolve any turf battles between the county commissioner and the county executive. I’ve got enough to do in this case,” Rhodes says.

Meanwhile, he lauded both Oakland and Wayne counties for agreeing to the formation of the Great Lakes Water Authority.

photo (21)Wayne County’s attorney, Max Newman, of the Butzel Long law firm, thanked Judge Rhodes for sending the issue to mediation.

“It was extremely beneficial in bringing about this historical settlement,” Newman said. “We truly appreciate it.”

The judge was complimentary back.

“Let me take this opportunity to thank you and especially your client for the hard work that went into reaching this settlement and for bring the motion that led to the order for mediation,” Rhodes said.

Jaye Quadrozzi, attorney for Oakland County, extended her gratitude to the judge and his team.

“You and your staff have devoted and enormous amount of resources and it’s impressive to watch how hard and how diligent everyone in this courtroom has worked,” she said.

Lennox said while the “framework” for the authority is in place, “there is still a lot of work to be done” including some documentation, governmental consents, permits and getting the consent of creditors and bondholders.

“While this is really a momentous step, there is still an amount of work to be done,” she said.

Here is what the city filed with the court today about the deal, including the Memo of Understanding.

Here is the city’s news release about the agreement.

 

9.9.14 Notice of Executive of Framework