School district settles
lawsuit over failed deal
to purchase care center
By Stephanie South
The Canby School District Board of Directors decided Monday morning to pay
$22,000 to a local building owner in return for his dropping a $700,000 lawsuit against
the district.
The lawsuit was filed by Dan Larson after he alleged the school district backed out of a
1998 deal to purchase the vacant Canby Care Center building and adjoining lot in downtown
Canby.
The district announced the board's decision after meeting in executive session to mediate
the settlement.
In return for the money, Larson has agreed to drop all claims against the district.
The Canby Care Center, located on the corner of North Fir Street and Northeast Second
Avenue, has sat vacant since the 1998 deal apparently went awry.
The Canby School Board voted on Sept. 29, 1998, not to forge ahead with its plans to
purchase the care center. Prior to the vote, a few board members voiced concern about a
lawsuit if the district did not purchase the center.
The district had showed interest in purchasing the building to use as new district offices
for about 23 staff members, including the central administration. The deal was called off
after a group of concerned citizens voiced their arguments against the purchase.
Some people credit the failed purchase with contributing to the failure of the school
district's November 1998 school maintenance bond attempt.
Larson's lawsuit against the district exceeded $702,000, including $590,000 for the
purchase price of the building, $72,874 in claimed damages and out-of-pocket expenses,
plus $40,000 in lost rent.
Canby School District Superintendent Deborah Sommer said the board believes it is not
liable in this matter and that Larson's claims would not be upheld in court.
Larson could not be reached for comment before Monday's press deadline. The estimated cost
for the district to continue to fight these claims and to pursue a court judgment against
Larson was estimated at $60,000.
"The cost to fight it in court exceeded the settlement offer," Sommer said.
"The board felt it was in the public's best interest to settle the case without
expending even more in attorney's fees, despite our belief that the outcome would be
favorable to the district."
CBR elects 3 to board,
seeks one applicant
By Cam Sivesind
The members of the Economic Improvement District voted to retain two board
members for a second term and add a new person to fill a third vacancy.
The three-year terms, which began Saturday, April 1, will be held by incumbents Peggy
Baker and Craig Finden. Joining the board is Scott Swanson.
The nine-member board replaces three directors each year. Continuing in their positions
are Vicki Adamson, Frank Cutsforth, Carol Prael, Wayne Scott and Bob Trappe.
One vacant board position is yet to be filled. Two years remain on the seat vacated by
Harry Lee Kwai. The bylaws call for an incomplete term to be filled by someone appointed
by the other board members. Anyone desiring to fill the vacant seat should phone the CBR
office, 266-3720, by the end of the day April 24.
The CBR board will meet the morning of April 25 to appoint someone to the position, as
well as to elect officers for the 2000-2001 year.
The CBR board meets the fourth Tuesday of each month.
The CBR has been responsible for spearheading such revitalization projects as the Pioneer
Plaza in downtown Canby, the Gateway Project at the city's south Highway 99E entrance, and
establishing the EID.
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