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Lawsuit settlement costly for small Va. town

Wednesday - 7/10/2013, 10:50am  ET

IRON GATE, Va. (AP) -- The settlement of an eminent domain lawsuit has been costly for a small Virginia town.

Iron Gate cashed in a certificate of deposit and took out a loan to pay the $115,000 settlement. To secure the loan, the town had to mortgage its town hall.

Iron Gate also increased its cigarette tax and laid off part-time workers to raise revenue to pay off the loan.

Mayor Alan Williams tells the Roanoke Times (http://bit.ly/1aae0ey ) that there have been some sleepless nights over the case.

Resident Jim Martin sued the town over its seizure of nearly an acre of his land for a new water tower.

Williams says Martin only wanted money.

Martin says he's not trying to break the town. He called the situation a waste of taxpayers' money.

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Information from: The Roanoke Times, http://www.roanoke.com


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