Reaching a settlement with contractors involved in the construction of the Block 6 parking garage wrap in the Bowling Green Tax Increment Financing district is the next step in resolving a lawsuit involving the wrap, attorneys told a judge Wednesday.

Attorney Ashley Gerughty, representing Warren County and the Warren County Downtown Economic Development Authority, said final terms still need to be worked out with general contractor Alliance Corp. and subcontractors.

The settlement amount and terms, including when payment will be received by contractors, has not been finalized.

A status conference on the lawsuit was Wednesday before Judge John Grise.

Another conference is scheduled for 9 a.m. Aug. 20.

Contractors filed liens on the property for money they say they are owed, and the county and authority filed suit against Mills Family Realty, which managed and developed the wrap, and contractors on the project to try to get the liens removed.

State Auditor Adam Edelen is investigating how bond proceeds were used.

This month, Warren County Fiscal Court and the authority approved a settlement agreement with Mills Family Realty, giving the county responsibility for settling with contractors and allows the authority to take over the subdeveloper role. A lease allowing Bowling Green Hot Rods owner Jerry Katzoff to take over operations of Mariah’s restaurant and 6-4-3 sports bar was approved and work continues to ready two re-open the restaurants.

County Attorney Amy Milliken said in court Wednesday an independent engineer was hired to go through the facility to develop a list of things that need to be repaired by contractors before full payment is made.

That list has been provided to Alliance and it is going through it to determine what work is needed as a result of flooding in the wrap over the winter – which should be covered by insurance – and what should be the responsibility of contractors, she said.

“We do believe an agreement will be reached,” Milliken said. “We’ve pretty much been on the same page.”

The county will settle with Alliance and it will settle with subcontractors, she said.

Milliken said the county’s attention has been on finalizing the agreement with Mills Family Realty so the county can move on to a resolution with the contractors.

“This is step two,” she said.

C. Michael Shull III, attorney for Alliance, said he, too, expects an agreement.

“I don’t see anything that’s going to be a roadblock or that’s going to cause this to unravel or anything like that,” he said.

— Follow government beat writer Katie Brandenburg on Twitter at twitter.com/BGDNgovtbeat or visit bgdailynews.com.

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