MeadWestvaco may sue after dropped deal
By Kathryn Heaberg
MeadWestvaco is considering a lawsuit
against the Regional Industrial Development Association and the City of
Buena Vista if the company can prove the two groups made a formal
agreement regarding its proposed Buena Vista distribution center.
“MeadWestvaco is no longer courting us, but taking us to court,” said
Dave Kleppinger, executive director of the Rockbridge Partnership.
Kleppinger worked with both MeadWestvaco and Buena Vista on the project.
MeadWestvaco has been courting the RIDA and Buena Vista since the end of
2004 and planned to build a multi-million dollar distribution center in
the city. However, following residents' concerns about increased air
pollution and truck traffic that might be caused by the center, the IDA
turned down the proposal.
Woods Rogers, a Roanoke law firm representing MeadWestvaco, contacted
both IDA chairman, Steve Jewell, and Buena Vista city attorney, Brian
Kearney. In a Jan. 3 letter, MeadWestvaco claims that the disapproval of
the center will cost the company $350,000 per month in damages.
In response, Kearney drafted a letter denying that either the IDA or
Buena Vista ever entered into a formal agreement with MeadWestvaco. "I
don't believe there is any merit to a lawsuit,” he said.
Following the city's response, MeadWestvaco filed Freedom of Information
requests for documents from the Rockbridge Partnership, the Regional
Industrial Development, the City of Buena Vista, the City of Lexington,
and Rockbridge County in an attempt to prove that a contract was
breached.
Kleppinger reported that between 1,000 and 2,000 documents have been
retrieved from his office. Kleppinger is not surprised by the recent
actions of MeadWestvaco. "I anticipated we were going to get sued,”
Kleppinger said.
Kearney said that the request has been processed in his office as well.
James Jennings, an attorney for Woods Rogers representing MeadWestvaco,
said he could not comment on possible litigation because MeadWestvaco
has not authorized him to make public statements.
MeadWestvaco chose Buena Vista as the site for its new distribution
center based on the site’s closeness to both Interstates 81 and 64 and
its Covington branch. MeadWestvaco manufactures paper, office supplies
and packaging materials.
Although the estimated 50 new jobs that a distribution center would
bring to Buena Vista could help the economy, Buena Vista citizens
worried about pollution, truck traffic and the proximity of the center
to residential areas in Buena Vista.
The IDA originally voted to accept MeadWestvaco’s proposal in a meeting
Dec. 19. In a re-vote Dec. 28, the IDA voted to turn down the proposal,
ending MeadWestvaco’s plans.
Following the city's decision, Kleppinger was asked if he was glad the
dealings were over, he responded: “It’s just the beginning.”
MeadWestvaco is no longer courting us, but taking us to court.
~Dave Kleppinger, executive director of the Rockbridge Partnership
Produced by Washington and Lee journalism students.
Lead supervisor: Prof. Claudette Artwick
Reporting supervisor: Prof. Doug Cumming
Editing supervisor: Prof. Pamela Luecke
Technical supervisor: Michael Todd