Finance Committee backs settlement related to State Theater flooding
City one of four parties contributing to $72,500 payout
BY KEVIN BONESKE
After meeting in closed session Tuesday night, the Rhinelander Finance, Wage and Salary Committee backed a settlement agreement with the Rouman Amusement Company related to the flooding reported at the State Theater at 110 N. Brown St. while work on the city’s downtown Streetscape project took place in the summer of 2016.
Rouman Amusement filed a lawsuit, in which the city was named as a defendant, after the vacant theater building experienced what property owner George Rouman stated to the committee in November 2016 was a “tremendous amount of flooding” in the rear basement while the construction was going on nearby.
At that meeting, city public works director Tim Kingman pointed out water produced by a big rain storm had gotten into the back side of the theater.
Kingman said the city and the contractor were at the theater to document what happened after the flooding occurred. However, he noted each one of the insurance agents involved in the matter favored denying the claim.
According to the settlement agreement calling for a $72,500 payment that includes all fees, costs and disbursements, four defendants in the suit will contribute the following: City of Rhinelander, $7,500; Intercon Construction, $17,500; Kruczek Construction and Bitco National Insurance Company, $40,000; and Town & Country Engineering, $7,500.
In addition, city attorney Carrie Miljevich noted the city previously paid Rouman Amusement $3,869.36 for dumpster costs covering the final three months of 2016, while the committee also agreed Tuesday to pay one-fourth of the mediation room fee at a cost of $50. The settlement agreement states the parties in the suit participated in mediation with Mark P. Wendoff, a mutually selected mediator, to resolve all of the issues between them.
The settlement is contingent upon approval by the Rhinelander City Council.