A Gwinnett County jury has recommended the owners of a piece of property be awarded $1.8 million in a lawsuit over the city of Suwanee's alleged interference in an $8 million deal with a private Catholic school.
After a weeklong trial, jurors decided Aug. 26 that Suwanee officials had undermined Settles Bridge Farm's agreement in 2008 to sell the 36.5-acre property to Notre Dame Academy. The school had been looking to move from its location in Duluth to the property near the intersection of Moore Road and Settles Bridge Road in a residential area of Suwanee.
The jury's ruling is advisory; Superior Court Judge Warren Davis will make the final decision in the lawsuit. The court has scheduled a hearing on the case for Sept. 30.
"We remain confident that when the entire legal process is completed, the city will prevail in this matter," City Attorney Gregory Jay said.
The city also can appeal the ruling and does not have to immediately pay the award.
The $1.8 million award represents how much jurors determined the property's value has diminished over the past three years.
The city settled a lawsuit with Notre Dame Academy in August 2010, including a $257,000 reimbursement for all out-of-pocket expenses.
Officials with Settles Bridge Farm initially had planned to develop a 41-lot subdivision on the property when Notre Dame Academy approached them in February 2008. At the time, the city's zoning classification permitted the property to be developed as a school without the need for approval by the mayor or City Council.
But about two weeks later the council held an emergency meeting and adopted a moratorium on building or development permits for "large projects located within residential districts, " according to the lawsuit.
Then, in May 2008, the council approved a special-use permit amendment to the city's zoning ordinance. That would have required the school to seek a permit to develop the property.
The school ultimately canceled the contract last August.
"We continue to believe that our actions to protect the character of our neighborhood and community were lawful and valid," Suwanee council member Kevin McOmber said. "The purpose behind requiring a special-use permit for large projects in established residential areas outweighs the developer's potential financial detriment. We will continue to fight on behalf of our citizens."
“Suwanee made it clear from the get-go that they didn’t want the school there,” said Gerald Davidson, attorney for Settles Bridge Farm. “They certainly did everything within their power to impede our client’s ability to sell the property.”
Settles Bridge Farm has another lawsuit pending against the Gwinnett Chamber of Commerce and Vice President of Economic Development Nick Masino, a former Suwanee mayor. The landowners allege that Masino advised city officials to block the deal and told them that residents "would probably go nuts" over a school being located on the property.
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