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Village of Oak Park Statement on District 200 Lawsuit Ruling


Judge Peter A. Flynn on Mon., Jan. 31, once again struck Count II of School District 200’s second amended complaint against the Village of Oak Park and School District 97 alleging violations of the State Tax Increment Finance (TIF) Act, saying the count did not plead adequate facts to sustain such a claim. He did, however, grant District 200 permission to once again seek leave of court to replead this count and file a third amended complaint should it choose. Judge Flynn also authorized D200 to engage in limited discovery in this area.

While indicating that he was unable to reach a clear understanding of District 200’s theory of the case in support of Count I’s breach of contract allegations and exactly what District 200 intended to achieve through Count I, Judge Flynn said the fact that Count I alleged a payment controversy between the parties was adequate to allow Count I to stand.
Based upon the complexity of the issues presented to him and his awareness of the high cost of litigating such issues, Judge Flynn encouraged the parties to engage in non-binding mediation of their dispute before a mediator with the necessary financial expertise. He gave the parties until March 1, 2011 to each submit a letter to the Court that indicates whether or not they are willing to submit to non-binding mediation.

The Village delivered a letter to Judge Flynn on Friday Feb.4, expressing its willingness to mediate this dispute before a mediator with the financial expertise necessary to understand the issues. In its letter, the Village cited Section 6 of the 2003 Intergovernmental Agreement, entered into by District 200, District 97 and the Village, which mandates that the parties use their best efforts to resolve any disputes arising with respect to the Intergovernmental Cooperation Agreement by negotiation as an important reason for its willingness to submit its dispute to medication.

The Village letter also cited Judge Flynn’s reference to the high cost of litigating such issues, emphasizing that the costs incurred by all parties to this litigation are paid out of the same taxpayer pockets, many of whom already are reeling under the weight of excessive tax bills.

The Court scheduled a status hearing for 9:30 a.m., Mon., March 14, 2011, to discuss the possibility of mediation or proceeding with the litigation and setting a time for defendants to answer the complaint.




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