By Tim Kowols
The insurance coverage limit for the city of Sturgeon Bay’s litigation against the Friends of the Sturgeon Bay Public Waterfront is running out. According to city administrator Josh VanLieshout, almost $100,000 in legal fees have already been spent on its federal and state claims with at least another $20,000 possible for the trial set in February. VanLieshout told the Common Council that he has asked the League of Wisconsin Municipalities Mutual Insurance Company, the city’s insurer, for a possible extension in coverage. He assured the council that any costs to wrap up the trial phase would not come out of Sturgeon Bay’s general fund, but charged to Tax Increment District #4 if additional coverage was not granted.
Alderperson Kelly Catarozoli accused the city of not informing the Common Council well enough about its finances and possible solutions through mediation.
According to VanLieshout, hotel developer Bob Papke has given his notice of concern regarding the city’s ability to fulfill its portion of the development agreement. No official action is expected to take place until after the city hears back from the League of Wisconsin Municipalities Mutual Insurance Company about a possible extension in coverage.