Commission receives letter from Morgantown Utility Board about Chaplain Hill debt; commissioners defer to counsel
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Summary
The Morgantown Utility Board sent a letter asking Monongalia County to pay more than $1 million tied to the Chaplain Hill/Westridge projects. Commissioners said they will route the letter to bankruptcy counsel and declined to intervene directly in the developer's bankruptcy, noting doing so could affect creditor priorities.
The Monongalia County Commission on Oct. 29 received a letter from the Morgantown Utility Board (MUB) requesting immediate payment of a debt tied to the Chaplain Hill projects in the Westridge development.
The letter, included in the meeting packet, states that MUB requests the county pay $1,000,003.74 (as stated in the letter) related to the Chaplain Hill construction contracts and notes that MUB says contracts were signed ‘‘only because of the county commission’s commitment to satisfy the obligations of Westridge if Westridge failed to do so,’’ language one commissioner called inaccurate. Commissioners discussed the matter and directed staff to forward the letter to the county’s bankruptcy attorneys for handling rather than taking immediate payment action.
During the discussion commissioners cautioned that intervening in an active bankruptcy could affect creditor priorities and that steps are already underway to resolve developer obligations through the bankruptcy process. The commission’s remarks emphasized allowing the court process to proceed and addressing the claim through counsel rather than making an immediate payment on MUB’s demand.