FAIRHOPE — A long-standing legal dispute between the city of Fairhope and Baldwin County Sewer Service, a Foley-based private sewage treatment firm, has reached a conclusion. The disagreement was settled in arbitration.

At issue was the failed attempt by Elite Development LLC to gain permission to build a subdivision near the intersection of Alabama Highway 104 and Baldwin County Road 27 (now Highway 181).

Fairhope Mayor Tim Kant, who was on the city Planning Commission at the time, said the project was voted down for several reasons, but he cast a “no” vote primarily because he believed the city should have provided sewage treatment services to the subdivision.

At the time, the city’s line was only 2,000 feet away, Kant said, while a potential connection to the BCSS line was three miles away. The developer had planned to use the private company for sewage treatment.

Elite filed the initial suit against the city in 2001, which BCSS later joined as an additional plaintiff. The sewer service also filed a second suit involving the same issues in federal court.

BCSS President Clarence Burke could not be reached for comment prior to press time.

“It (the subdivision) never got built and the property was sold,” Kant said. “There was a lot of back and forth, and both sides were spending a bunch of money.”

Attorney Sam Irby acted as mediator to resolve the issues, moderating numerous discussions between Kant, Burke, City Council President Bob Gentle and attorneys for both sides. The aimed at a solution that would work for both sides.

According to Kant, Fairhope and BCSS have agreed to cooperate when faced with similar conflicts in the future. Both entities will continue to compete, however, to provide sewer service to customers east of Highway 181.

“When a developer comes in to put in a subdivision, they can use a private company or the city,” Kant said. “Competition is good for everybody.”

As part of the deal, BCSS has agreed to purchase the city’s sewer line running east on County Highway 32 from State Highway 181 to Fish River. Fairhope agreed to treat the effluent from that line under financial terms agreed to by both parties.

“The reason we sold the line was because this has been going on five years and there are only 22 customers,” Kant said. “Developers want to develop property in those areas, and (BCSS) can use it to tie in to those subdivisions.” He noted that the existing line was designed to carry raw sewage from up to 1,500 homes.

Kant said, “It seemed like a reasonable request to put this thing behind us. At the end of the day, we agreed we would allow the sewer systems, and they agreed they would follow our rules and standards.” The arrangement will be examined every five years, and changed as needed, he said.

The mayor pointed out such an understanding is important for environmental protection as well as in the best interest of Fairhope residents.

“It’s a win-win for everybody,” he said.