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PWSA attorneys reviewing Iron City settlement
Tuesday, November 30, 2010

At a joint news conference in June, Pittsburgh Water and Sewer Authority and Iron City Brewing LLC announced the settlement of a longtime billing controversy, saying they intended to put the past behind them and aid Lawrenceveille's development efforts.

Five months later, PWSA won't say whether Iron City made the first required payment of $450,000 or complied with other terms of the $750,000 settlement.

"You know I can't answer that," PWSA executive director Michael Kenney said Monday after a City Council budget hearing. PWSA attorneys are reviewing the matter, he said.

State Rep. Dan Deasy, D-Westwood, the PWSA chairman, also declined comment during a recent interview. Iron City President and CEO Tim Hickman couldn't be reached for comment Monday.

Officials last summer said the settlement ended a billing case that stretched back more than six years, included bankruptcy proceedings and saw a corporate restructuring.

In December 2004, Pittsburgh Brewing Co. agreed to pay more than $4.1 million in overdue sewer, water and other charges. However, the company paid less than $1.8 million before filing for Chapter 11 bankruptcy in December 2005, according to information PWSA provided in June.

By December 2007, the company had restructured and had a new name--Iron City Brewing. PWSA and the company then reached a new settlement, which PWSA said was contingent on the company's promise to continue brewing operations in Lawrenceville.

When Iron City relocated brewing to Latrobe last year, negotiations began anew and led to the settlement announced in June, PWSA said.

Under the June agreement, Iron City said it would pay $450,000 on Sept. 18 and another $200,000 by Dec. 31. The second payment was expected to come from proceeds of the salvaging of two company buildings in Lawrenceville. The settlement also called for Iron City to accept $65,000 in fees and contribute $35,000 to a plan for redeveloping the Lawrenceville site, where the company still has offices.

The company completed demolition of one warehouse building in October, according to the city Bureau of Building Inspection. It wasn't clear whether the company applied for a permit to demolish the second building.

"This agreement between the PWSA and Iron City Brewery will promote the productive reuse of the brewery site and clears the way for all to stop looking backwards and begin working toward the future. One of the key components of the settlement was Iron City Brewery's willingness to build a partnership and relationship with the community and to develop a master plan for the future development of Iron City Brewery's site," PWSA said in June.


First published on November 30, 2010 at 12:00 am