Governor Rendell Announces Settlement in Philadelphia Family Court Construction Project
Commonwealth to Move Forward with Process of Acquiring Real Estate, Awarding Contracts for Construction
HARRISBURG, Pa., Nov. 2, 2010 /PRNewswire-USNewswire/ -- The settlement agreement reached through mediation by the Chief Judge of the U.S. Bankruptcy Court has received final approval, marking a crucial step in the process of building a new courthouse for the First Judicial District's Family Court Division in Philadelphia, Governor Edward G. Rendell announced today.
"I am pleased the bankruptcy court brought closure to this process, enabling this important public project to proceed to the construction phase," Governor Rendell said.
The settlement will enable the commonwealth to move forward with acquiring the necessary real estate and begin the process for competitive bidding to construct the facility at 15th and Arch Streets in Philadelphia.
"This was an important step in getting the Philadelphia Family Court construction project back on track," Governor Rendell said. "This agreement now puts us in the position to ensure that taxpayer dollars are being used in the most efficient and cost-effective way. All of the parties to the agreement acted responsibly in resolving their differences and reaching a settlement."
The agreement calls for the release of architectural documents related to the project and ensures the public will not be charged twice for these services. The agreement also includes payment from the commonwealth for the air rights acquired in 2004 by the former development group of the project, Northwest 15th Street Associates. The state will place $1.1 million into an escrow account to be paid to the former development group upon successful awarding of construction contracts by the Pennsylvania Department of General Services.
"We are comfortable with the delayed-payment contingency of the agreement and feel it is in the best interests of the public and this project," Governor Rendell said.
The fact that the payment will go directly to Northwest 15th Street Associates – a group with no association to Jeffrey B. Rotwitt, who has been at the center of the controversy surrounding this project, further raises the state's comfort level.
"With the development of this project in the hands of the Pennsylvania Department of General Services, it ensures that entire process will follow the specific process and rules used for construction projects using public funding – particularly the bidding of the project and awarding of contracts," Governor Rendell said.
With final approval of the settlement agreement received, General Services will move forward in getting the project prepared for competitive bidding of the multiple prime construction contracts.
Media contact: Troy Thompson, 717-787-3197
SOURCE Pennsylvania Office of the Governor
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