The Kansas City Council has approved a $1.75 million settlement in an air cargo company’s lawsuit that claimed water damage to its premises on KCI property.
K.C. Air Cargo Services filed its lawsuit in 2013, alleging the city had allowed subsurface water from Kansas City International Airport land to migrate onto its leased property in the northwest portion of that land, with an address of 992-1044 Mexico City Avenue.
The company has leased those premises since 1986 and used its warehouse there for loading, unloading, handling and storage of items shipped via aircraft. For many years, cargo planes used a concrete aircraft apron on the leased premises to reach the shipping warehouse.
But the lawsuit claimed that water leaking from airport property had significantly damaged the concrete apron and the city repeatedly refused to meaningfully investigate or remedy the problem.
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The city’s law department recommended the settlement, and the City Council approved it Thursday. City Attorney Bill Geary said he and the risk management committee had determined the settlement was in the city’s best interest.
Attorney Christopher Shank, representing the company, said Friday that he and his client hope the settlement resolves the water issues, and they had been told a city water line nearby had finally been taken out of service.
“There is a cash payment to us to compensate us for the damages we have suffered over time due to this condition,” Shank said.
The company’s lease with the city will also be amended to redefine its property boundaries and reduce the rent payments. The existing lease expires in 2017.
The settlement money will come from the aviation department’s unappropriated fund balance, or “rainy day fund.” Geary said the payment to the cargo company will not adversely affect funds to provide airport services.
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