Northwest Indiana Discussion

Plasmatronics lawsuit 'resolved'

C.P. Development Corp. chief expected to sign off on a $125,000 settlement


By Kathleen Quilligan - kathleen.quilligan@nwi.com, (219) 662-5331 | Posted: Tuesday, February 23, 2010 12:00 am

CROWN POINT | The main lawsuit between the Crown Point Development Corp. and New York-based Plasmatronics Inc. "has been resolved," Plasmatronics' lawyer Joseph Stalmack said.

Stalmack said Friday the two parties have reached an agreement, and the final documents have been signed on his end.

City Attorney David Nicholls said he has received the paperwork, signed by the Plasmatronics guarantors, and will give it to Development Corp. President Sarah Polman to sign.

In October, the development agency voted to resolve a $380,000 loan to Plasmatronics and its guarantors by accepting a $125,000 settlement. That settlement did not include an initial lump sum or interest and was to be paid in monthly installments of $3,000 during 41 months, with a final payment of $2,000.

Nicholls declined to comment as to whether the settlement had changed.

Also at the October meeting, the group voted to begin the process of disbanding itself and scheduled a meeting in December for a final vote on the dissolution. The December meeting was canceled because the settlement was not finalized, and the meeting has yet to be rescheduled.

In July 2008, the Development Corp. filed a lawsuit through attorneys with Indianapolis-based law firm Ice Miller to recover $380,000 in economic development money that the agency loaned Plasmatronics to locate in the city and manufacture its Plasma Drive Ignition system. Officials decided to attempt to recover the loan after the company terminated its relationship with the city.

Under state law, the Crown Point Redevelopment Commission cannot lend money, so the Development Corp. was created to be the lending body. The commission grants public money to the corporation, which in turn issues loans for development purposes.