Madison Could Pay McDonald's $300K In Settlement
Lawsuit Has Been Ongoing Since 2008
Updated: 8:05 am CDT September 1, 2010
MADISON, Wis. -- The city of Madison could be paying the owner of a local McDonald's restaurant more than $300,000 after a pedestrian and bike bridge was built.The owner said the bridge blocks motor vehicle access to the McDonald's.The lawsuit has been ongoing since 2008, when the Starkweather Bike Trail Bridge was built over East Washington Avenue.A settlement, with taxpayer dollars, might end the dispute.For drivers heading northeast on East Washington Avenue, the McDonald's restaurant can't be seen because the bike trail bridge blocks the view until it's too late to turn, WISC-TV reported."They basically had to close off some of the roadway around the McDonald's on East Washington Avenue, and in the process we took their access rights," said Madison assistant city attorney Doren Viste.Road and bridge construction eliminated an entrance and cut off a frontage road, prompting the city in 2006 to pay $56,000 in compensation, as required by law.In 2008, McDonald's sued for more than $400,000 according to the city, saying its location was no longer suitable.
"In so doing, we changed the use of the property. The property, based upon appraisers, they're saying it's no longer best used as a fast-food drive-through restaurant. That was something that would be difficult for the city to dispute at trial," said Viste.According to Viste, both sides are now agreeing on a settlement of $312,000 and, if approved by the Madison Common Council next week, it will avoid a trial.As the neighborhood alderman, Larry Palm said the city was forced to make estimates without hard numbers from McDonald's."We weren't really, at the time, privy to actual hard data. We made guesses about how this would affect business that clearly were wrong," said Palm.Palm said neither the city nor McDonald's knew the extent the project would hurt the restaurant, but a trial could be even more costly."I certainly hope we don't go to court over this. To me, the problem is the downside is there and I think the city of Madison should always go with the known," said Palm.The city officials with whom WISC-TV spoke said they feel the settlement is fair and said it is standard to compensate a property owner in a case like this.Tim Vogel, real estate manager for McDonald's Midwest Region, released a statement to WISC-TV Tuesday morning."Regarding this matter, we've been working with the city to come to a resolution," Vogel said in the statement. "We always strive to be a good neighbor wherever we do business, and hope that we are able to continue to serve the residents and visitors in Madison for years to come. Because this is a pending legal matter, it would be inappropriate to further comment or speculate on the outcome."Several customers expressed their own feelings on the settlement.Some told WISC-TV they understand that the business suffers from the city's action and deserves something.Others said they were upset about the money, going as far to say they feel the bike trail was not worth the cost to begin with.
To find out more on this, visit Channel 3000's Search page.
Copyright 2010 by Channel 3000. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.




