Wednesday, August 05, 2009

In a nearly decade-old lawsuit over erosion, Dauphin Island property owners and the federal government have reached a proposed settlement that would give the island $1.5 million to restore tattered beaches, according to court records.

The Dauphin Island Property Owners Association filed a lawsuit against the federal government in 2000, blaming chronic erosion and land loss on the U.S. Army Corps of Engineers' dredging activities in the Mobile Ship Channel.

The lawsuit claimed that sand naturally flowing east-to-west on waves was trapped in the channel and prevented from replenishing the island's shores.

A lawyer representing the Property Owners Association and a spokesman for the U.S. Department of Justice both declined to comment Tuesday.

"The settlement agreement reached in the corps lawsuit, if approved, will put an end to years of litigation and will likely avoid more years of litigation and uncertainty," said Bill Harper, president of the Property Owners Association, in a letter to members on Tuesday. "This lawsuit and other litigation has been an obstacle to moving forward with efforts to secure projects that will restore Dauphin Island."

According to the proposed settlement, the federal government would pay $1.44 million and Alabama's government — also a defendant in the case — would pay another $60,000.

The payment, after legal fees, would be applied to a beach restoration project. It could pay for a feasibility study, engineering or the placement of sand on the beaches, according to court records.

It was not clear Tuesday how much legal fees would be paid from the settlement.

Because it is a class action lawsuit, a hearing will be held in September during which property owners can voice their opinions about the settlement. A federal judge must approve the settlement before it is final.

Erosion has plagued the island, and hundreds of feet of beach have been lost in some areas along the Gulf of Mexico side. Barrier islands naturally grow, change shape and move with the currents, but the lawsuit claimed dredging of the channel caused land loss.

In 2006, both sides reached a settlement that called for a scientific study to determine the causes and extent of erosion on the island. A beach restoration project paid for by the federal government was a possible outcome of that settlement, if the study found the dredging to be a cause.

The study found no measurable erosion could be linked to the dredging of the channel — a finding that the plaintiffs challenged, according to court records.

Instead of continuing with that challenge, which could have lasted years, a new settlement was negotiated for a cash payment, according to court records.

Dauphin Island leaders have been rallying to fix erosion problems across the island, including hiring lobbyists to hunt for funding and campaigning to be added to a massive barrier island project in neighboring Mississippi.

"We are hopeful that once this settlement is finalized, the Town of Dauphin Island can continue to work with our local, state and federal representatives to accomplish the goal of restoring Dauphin Island as an effective Gulf Coast barrier island as soon as possible," Harper wrote.

In exchange for the payment, property owners would release the federal and state governments from any past or future claims of damage to their property from the dredging, according to court records.

The dredged material must continue to be placed in areas deemed beneficial to the island, where the disposed sand can drift back to the beaches, according to records.

The hearing will be held at 1 p.m. Sept. 15 at U.S. District Court in Mobile.

Forbes magazine: Mobile poised for recovery

Mobile has been named by Forbes magazine as one of the "Best Cities in America for Recession Recovery."

The rankings take into account the projected gross domestic product, unemployment figures, incomes and affordability.

"We've been saying that all along," said Don Epley, director of the University of South Alabama's Center for Real Estate Studies, which has been tracking the local economy for two years.

He said that he has published reports indicating that the recession would be slow to hit Mobile, and "we will be fast to recover."

Huntsville was also included on the Forbes list.

"This is a great mention for our city," Mobile Mayor Sam Jones said in a written statement. "Though it's good to be mentioned as one of the best cities to rebound from the recession, we do so with caution, realizing that we must continue to be very conservative with our spending."

City Council President Reggie Copeland said the ranking by the business magazine is a testament to the cooperative working relationship of local and state leaders.

"How proud we are," Copeland said Friday afternoon. "Anytime we get an honor like that, it's awesome. I'm proud for the mayor."

Last year, Forbes magazine named Mobile as the fastest-growing mid-size city in America. Mobile has also been recognized as a "Top 50 Place to Live and Play" by National Geographic.

Forbes examined GDP data from Moody's Economy.com; unemployment and employment figures from the Bureau of Labor Statistics; affordability information from the National Association of Homebuilders; and population statistics from the Census Bureau.

Forbes reported, however, that it did not factor home prices into the ranking, since economically healthy cities were typically spared severe harm from the U.S. housing market collapse.

The Forbes story said that Seattle and Boulder, Colo., with their high-tech capabilities, could experience rapid recovery in coming months.

The other cities and metropolitan areas named by Forbes that are poised to bounce back quickly from the recession are: the Austin-Round Rock area in Texas; Fayetteville, Ark.; San Antonio, Texas; the Dallas-Forth Worth-Arlington area in Texas; the Washington DC- Arlington-Alexandria, Va. area; and the McAllen-Edinburg area in Texas.

Leigh Perry Herndon, vice president of communications for the Mobile Area Chamber of Commerce, said rankings like these are important. "It reinforces to our community that the work the chamber is doing in partnership with others is having an impact nationally and internationally," she said.

For the past decade, Herndon said, local leaders and agencies have sought to diversify the Mobile area's economic base "so we are not dependent on one industry for the success or failure of the region."

That focus, she said, includes shipbuilding, aerospace, oil and gas exploration, transportation distribution, health care and manufacturing.