Source: http://www.newsandtribune.com, April 19, 2016
By: Elizabeth Beilman

Board still hoping to receive $1 mil back for environmental policy

An ongoing fight for reimbursement of $1 million worth of environmental insurance between the River Ridge Development Authority and the U.S. Army is not over.
Last month, the U.S. Armed Services Board of Contract Appeals granted River Ridge about $27,000 in credit but left the bulk of insurance payments to be negotiated directly between the Army and River Ridge.
“Basically [the meeting] is to provide more evidence and to show whether or not there’s any overlap in what the insurance covers and what the Army agreed to cover in its indemnities,” River Ridge General Counsel David Lewis said during a board meeting Monday.
River Ridge is asking for reimbursement of its environmental insurance policy because officials believed when a lease agreement was first signed, the Army would be the liable party.
River Ridge bought the 10-year pollution insurance plan in 2005 when it learned the Army would not shoulder River Ridge’s liability related to personal injury and property damage from hazardous substances.
And though the master lease between both parties — which allows River Ridge to operate on the land until all land is transferred —provided this indemnity when the lease was signed, the Army later stated the provision was a mistake. Because the former Indiana Army Ammunition Plant was closed through special legislation, the Army had no authority to provide this indemnity.
“Frankly, [River Ridge] relied on the master lease provision that said there would be an indemnity there,” Lewis said.
According to a judge’s opinion, River Ridge’s environmental insurance duplicates protections the Army already gives to River Ridge through the master lease and federal laws. The Army has said it will clean up environmental spills or accidents if any occur.
For River Ridge, that’s not enough.
“We have to have insurance to protect not only River Ridge and the taxpayers but the people out here that are doing business at River Ridge,” Lewis said.
River Ridge appealed that decision, which was fought on behalf of attorneys in Washington D.C. Now, the parties must discuss the reimbursements without a judge.
“So the big ticket item remains ahead of us,” Mark Robinson, president of the board, said.
This isn’t the first time River Ridge has disagreed with the Army on environmental matters.
A dispute over the safety of a former landfill caused a stalemate between the Army and River Ridge last year, when the Army refused to transfer more of its property until River Ridge took ownership of the landfill.
Environmental indemnification was one protection River Ridge sought.
The land has since been transferred to the commerce center.
CONTRACTS
During its board meeting, the River Ridge Development Authority approved a few contracts for road improvements and demolition.
• The board awarded a $216,000 contract to Excel Excavating to widen and repave Lentz Avenue near the site for Magnolia and the Clark County Recycle Center.
• A $43,850 contract was also given to Koetter Construction to extend Second Street in front of the entrance to DA Inc. by 220 feet.
• For ongoing demolition of old Army structures, River Ridge will purchase a $154,450 excavator, with a $53,500 trade-in value. The board also approved a $99,300 contract to Burns and McDonnell for engineering of demolition of structures near Charlestown.