FM Diversion Authority approves $57 million settlement to resolve project claims

The FM Diversion Authority Board on July 2 approved a statement of principles to settle outstanding claims with the project developer for $57 million, a board presentation said. The agreement, which the parties expect to finalize July 3, would resolve about $400 million in asserted claims and puts milestone payments and schedule commitments in writing.

"This is the culmination of a lot of work and a lot of cooperation with the developer and the DNC's contractors," said John Shockley, a staff presenter, introducing the settlement summary and the payment and schedule terms.

Board members and staff said the settlement is intended to reduce the authority's financial risk and to re-establish collaborative mechanisms between the parties. Under the statement of principles the $57 million would not be paid in a single tranche: an initial $10 million payment would be due about 30 days after the agreement's effective date (presenters identified the effective date as July 3, 2025), followed by milestone payments tied to corrective actions, design-and-construction certificates and completion of specific project components.

Details presented to the board list the payment milestones as follows: $10 million within 30 days of the…