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Caledonia approves payments under termination agreement with CCM Caledonia LLC despite questions on timing and litigation risk
Summary
Trustees approved a termination-agreement payment tied to CCM Caledonia LLC and Cardinal Capital Management Inc., while outside counsel warned the agreement obligates Caledonia to two payments and does not specify timing; trustees debated whether making the payments would forestall litigation.
The village board voted to approve Resolution 2026-081, authorizing payments under a termination agreement with CCM Caledonia LLC and Cardinal Capital Management Inc. Outside counsel addressed the board’s questions about the agreement’s scope and timing.
An attorney speaking for the village said the termination agreement requires Caledonia to assume obligations to the project’s architect and engineer and identified two amounts in the document: “it requires Caledonia to assume the obligations, that were owed to the architect and the engineer, and it has the 2 amounts in that agreement, 205,000 plus and 95,000 plus,” the attorney said. Trustees asked whether taking the payment now would guarantee avoidance of litigation; counsel replied the agreement does not specify timing and the village may still face other claims.
Trustees who said they had read the termination agreement expressed unease about timing and whether side agreements existed to delay payment. Still, the board approved the resolution by voice vote. Several trustees noted the decision followed discussion in closed session and that some details (including any separate side agreements) were not in the public record.
