A dispute over a $100,000 bill for a water pipe crossing the Otago Central Rail Trail has been settled with a $50,000 donation to the Otago Central Rail Trail Charitable Trust.
Parties involved in a row over the bill met for a settlement conference in the Alexandra District Court yesterday.
Judge Kevin Phillips presided over the four-hour Civil Court conference, which was closed to the public.
The Department of Conservation charged Molyneux Estates Ltd and the Central Otago District Council $100,000 for a 300mm pipeline easement under the rail-trail corridor to the Molyneux Estates subdivision in Alexandra.
The easement was sought in 2004.
Valuers last year assessed the easement's market valuation as $5500, but Doc maintained its charge was reasonable and instructed lawyers to recover debt after Molyneux Estates and the council refused to pay the bill.
A press release approved by the parties was released after the hearing and said Molyneux Estates and the council would make a donation of $50,000 to the trust, and Doc would discontinue its proceedings.
"The parties are pleased to have settled the dispute in a manner that will benefit the community. No further comment," the release stated.
When contacted by the Otago Daily Times last night, trust chairwoman Daphne Hull, of Alexandra, said the $50,000 donation would be gratefully received.
"The trust is always grateful for any money it receives, because it all goes back into the rail trail which benefits the community."
Molyneux Estates' pipeline enabled an upgrade of infrastructure for services in Alexandra as well as completing a ring effect for enhancing water pressure and firefighting standards in the town.
It also allowed the council an opportunity to service up to 700 residential sections for the town's future development.
Molyneux Estates and the council met costs associated with the installation of the pipeline as part of standard developer levies.
Molyneux Estates director Russell Ibbotson wrote to former minister of conservation Steve Chadwick asking for her intervention in the matter, although she had previously refused to intervene.
Minister of Conservation Tim Groser had also told parties he could not intervene as the matter was before the court.
