City staff expects FAA to reimburse most of the bill
DAVENPORT—A lawsuit by Greg’s Crop-Care Company against the city has been settled after the city agreed to pay the ag spraying business based in Wilbur $65,000 if the company removes its hangar at the Municipal Airport.
Mediation took place in Lincoln County Superior Court Tuesday, Aug. 23, and the agreement was reached after nine hours of discussion, city administrator Steve Goemmel said. City council signed off on a resolution approving the settlement at the regular meeting Wednesday, Aug. 24.
“It took nine hours to get there, but I thought the agreement was fair enough,” Goemmel said. “As long as they adhere to the terms, we should all be happy.”
Greg’s Crop Care sued the city in July claiming the city and airport didn’t meet the terms of a hangar lease between the company and city during and after airport improvement construction in 2021. The city denied most of the claims in a follow-up filing earlier this month.
The $65,000 payment to the company includes $43,000 for acquisition and removal of the hangar, $22,000 for the settlement cost to resolve and extinguish the lease and $3,325 as a mediation cost.
The check was signed for Friday, Aug. 26, Goemmel said.
Greg’s Crop-Care president Kevin Leyva declined to comment on the proceedings, other than saying he was satisfied with the result.
“I’m glad we were able to put it to rest,” Leyva said.
Goemmel is now authorized to dispose of the hangar, according to the settlement.
At least $43,000 of the payment will be reimbursed to the city by the FAA, city attorney David Bingaman said at council’s meeting.
“I’m glad this keeps us out of the courtroom,” councilmember Lance Strite said.
Mediation costs should also be reimbursed by the FAA, and the city hopes the settlement dollars will be as well, Goemmel said at council.
The down payment for the check came out of the city’s airport capital improvement fund, he said.
“I’m glad it’s over,” Goemmel said. “It’s a win-win for both of us.”
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