Westfall residents are backing township's bankruptcy decision

WESTFALL — More than 30 local citizens filled the township meeting room for an hour-long Apr. 29 informational meeting on Westfall’s impending bankruptcy filing. Almost a month ago, the Westfall Township Board of Supervisors filed for Chapter 9 bankruptcy protection after finding itself $20 million in debt from a settlement ruled in 1999. The board is looking to have that sum removed or “discharged,” officials told the audience. Several members of a supportive audience lauded the supervisors efforts and the group offered repeated rounds of applause for the bankruptcy discharge decision. On the whole, few in attendance voiced any concerns regarding the possibility of increased taxation, the potential for interruption of municipal services, or the possibility of the debt not being discharged. Residents were instead far more concerned with developer David Katz’s role in the case. Over two decades ago, Katz purchased 750 acres of wooded property off Old Milford Road and Mountain Avenue with the intent to build homes there. According to board solicitor Bob Bernathy, Katz began the development process with the then-board of supervisors, which took steps — such as changing ordinance provisions — to thwart Katz’s progress. Katz eventually sued both the township as a whole and the individual supervisors. Katz and Westfall reached an agreement in 2001, yet two years after an apparent settlement, the developer filed a second suit against the township claiming it was not complying; Katz won on appeal. By that point, the charges had amounted to approximately $20 million. As a result, the board filed Chapter 9 bankruptcy. The board’s ultimate goal is to be discharged of all monetary and infrastructural obligations. Bernathy said that though that sort of litigation could be ongoing for years, the board had no other viable avenues. He said taxing residents, a sum that figures around $25,000 each, would not be an option. Bernathy considers the township’s case to be “one of merit.” May 11 is the deadline for filings related to the bankruptcy filing; a hearing will take place May 14. In early June, the board will have a private mediation with Katz, who has not relented in earlier negotiation attempts. If the mediation is unsuccessful, a court hearing will be held June 4.