Northport gets $700K in settlement after 4-year business dispute
By WVUA 23 News Reporter Avery Boyce
The city of Northport is getting $700,000 as part of a settlement against a steel company that rented space from the city but wound up falling behind on rent.
The city hired Krebs Law Firm as outside counsel to represent the city in its case against Eddie Kane Steel Products.
Krebs Law Firm said Kane agreed to build a million-dollar facility that Northport would own. In return, Kane would receive a reduction in rent and operate out of the facility.
According to the suit, the project was never built and the company began missing its payments. Northport City Attorney Ron Davis said the lawsuit was a last resort.
“We tried to work with him, tried to work something out. That didn’t happen so we ended up filing suit,” Davis said.
Northport Mayor John Hinton, who’s been on the city council since the issue cropped up four years, said he’s glad to see the case settled.
“It certainly is a sense of relief,” Hinton said. “Kane Steel was a real disappointment to Northport and we’ve been in discussion for at least four years and litigation two years. Finally we were able to get them off of our property.”
Northport City Council President Jeff Hogg said the lawsuit speaks volumes about Northport.
“I think it’s a new setting in Northport, where we’re not going to take anything like that from anyone else and that we want to make sure we are putting our best foot forward,” Hogg said.
The company will pay the city the $700,000 over three payments. It’s already paid the city its first $250,000.