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MUB asking county for payment in light of WestRidge bankruptcy

MORGANTOWN – The Morgantown Utility Board has repeatedly asked the county to make an immediate payment of $1,374,985.80 for water and sewer upgrades serving areas including the WestRidge development and the greater Chaplin Hill area.

On Wednesday, the Monongalia County Commission said the payment is included in WestRidge’s ongoing bankruptcy proceedings, and it will not intervene.

The issue dates back to what was described as an “unprecedented” collaborative effort in September 2023, when MUB, the county and developer WestRidge each signed a memorandum of understanding to cover equal $3,687,667 portions of a $14 million water and sewer infrastructure project.

The three-way deal was necessary after the parties learned the West Virginia Water Development authority had opted to grant just $3 million of their $7 million request for the improvements, which includes $7,225,000 in water infrastructure and $6,838,000 for sewer upgrades.  In order to release those funds, however, the WDA requires local stakeholders to show how the remainder of the cost will be covered.

The arrangement was touted as a creative solution to a complex problem that would help open up a large swath of land from WestRidge out towards Mylan Park for commercial and industrial development.

In August, WestRidge filed for Chapter 11 reorganization. MUB is listed as a creditor in that filing.

In a letter to the commission dated Oct. 28, MUB Chair Barbara Parsons said the utility board is asking the county to make good on promises made as part of the arrangement.

“The construction contracts for the Chaplin Hill projects were signed by MUB only because of the county commission’s commitment to satisfy the obligations of WestRidge if WestRidge failed to do so,” Parsons wrote. “While payment may ultimately be made through the pending bankruptcy proceedings, until such time, the debt that WestRidge currently owes MUB is properly the debt of the county commission, not MUB.”

Members of the commission called Parson’s explanation “revisionist history,” explaining MUB signed on as a partner months before the commission agreed to make the utility whole in the event of unforeseen circumstances.

“It’s revisionist history because the agreement was signed, and then a number of months later we had a meeting with MUB and they raised concerns and we told them that we would cover them — after the fact. It’s six months after the fact, so you can’t say the agreement was only signed because we agreed to cover the cost,” Commissioner Sean Sikora said.

Commission President Jeff Arnett added that the debt is stated as part of WestRidge’s bankruptcy proceedings and the commission isn’t interested in intervening in a manner that would further complicate or extend that process.

It was stated that the commission will forward MUB’s letter on to its legal counsel.

“It’s a whole process that has to occur,” Sikora added. “We’ve said it to MUB privately and we’ll say it here publicly. They will not be saddled with this debt, but they have to let the process run its course.”

The water project included an upgrade of the Chaplin Hill booster station as well as 9,625 feet of 12-inch water line and 1,100 feet of 24-inch water line crossing beneath the Monongahela River at the Westover Bridge. It also included the construction of a new 859,000-gallon water storage tank.

The sewer improvements included a lift station upgrade as well as 9,000 feet of force main and 1,200 feet of sewer line crossing beneath the Monongahela River at the Star City Bridge.