Great Lakes Water Authority approves deal to address Highland Park water debt - Detroit News

Great Lakes Water Authority approves deal to address Highland Park water debt

Great Lakes Water Authority approves deal to address Highland Park water, sewer debt
Louis Aguilar

Detroit ― A deal that will end a years-long costly battle over millions of dollars in unpaid Highland Park water debt took another step to becoming reality Wednesday when the board of the Great Lakes Water Authority approved an agreement brokered by the state of Michigan.

The GLWA board of directors on Wednesday approved a "term sheet" of a brokered deal that "represents the initial step in a proposed agreement" between GLWA, Highland Park and the state, said the authority in a press release. The agreement, when completely authorized, would end the multi-decade billing dispute between GLWA and Highland Park, including resolving outstanding lawsuits.

The deal commits more than $100 million in taxpayer dollars for water infrastructure repairs for Metro Detroit, including modernizing Highland Park’s nearly 120-year-old water system. It also will settle an estimated $55 million in unpaid water and sewer debt from Highland Park with the regional water authority.

Suzanne Coffey, CEO of the water authority, called the board of director's approval a "fresh start with the GLWA-Highland Park relationship."

She added the agreement is based on three pillars: payment assurances from Highland Park; investment in capital improvements in the Highland Park and GLWA systems by the state; and the addition of metering to Highland Park's water and sewer system.

"While much work remains, all parties agree that this agreement represents a new and collaborative beginning to our working relationships," Coffey said.

The Highland Park City Council approved the agreement earlier this month.

The deal settles two separate lawsuits between the city and the regional water authority by improving Highland Park's infrastructure. The state proposal includes $70 million for upgrading Highland Park's water infrastructure and $30 million for repairs to the regional system in Wayne, Macomb and Oakland counties. The state Legislature has already appropriated $25 million to the water authority.

According to the term sheet, the agreement still needs final approval by Gov. Gretchen Whitmer and appropriation of funds from the Legislature. The lawsuits also need to be officially dismissed.

Much of the debate about GLWA board members Wednesday was whether other municipalities will get reimbursed for the money their communities were charged over the years to make up for Highland Park not paying.

Brian Baker, vice chair of the GLWA board who represents Macomb County, called the deal multifaceted.

"A good portion of this, for the suburbs, is recouping a small portion of that money" that was paid to cover Highland Park's bills, he said.

Baker added he wanted more assurances and details on that commitment. The reimbursement issue will be further explored by the GLWA board soon.

John Zech, who represents Wayne County on the board, added: "I believe that the administration's efforts to reimburse the communities that have held this together is the right thing to do. "

laguilar@detroitnews.com