Williamsport A Texas corporation claims that its decision to scrap plans for a $1.1 billion plastic recycling facility in Northumberland County was largely influenced by the failures of an engineering consulting firm in Lancaster.
In a filing submitted to the U.S. Middle District Court on Thursday, Encina Development Group charged Rettew Associates Inc. with not managing projects it was hired to handle adequately.
The Springs, Texas-based Encina stated in April 2022 that it would construct a state-of-the-art factory on a 105-acre, rail-served, industrially designated property along Route 11 next to the Susquehanna River’s North Branch in Point Twp., seven miles outside of Northumberland.
The business estimated that 300 employment with an average yearly income of $75,000 would be created by the Point Township Circular Manufacturing Facility.
According to the facility, 450,000 tons of recycled plastic waste that might otherwise end up in landfills or incinerators will be processed each year using tried-and-true technology.
Rettew’s lawsuit, which alleges that Encina owes it over $225,000 plus interest for unpaid invoices for four months in 2023, prompted the court filing on Thursday.
Encina argues that Rettew’s services were so subpar that it would be irrational to demand more money.
According to letters from the state Department of Environmental Protection, Rettew’s ideas were devoid of necessary details and failed to meet design requirements.
It charges Rettew with failing to adequately advise Encina to foresee the site-specific permitting difficulties.
Encina argues that excessive billing and needless, excessive delays were caused by Rettew’s failure to deliver services in a way that was compatible with the contractual level of care.
It uses the highly advanced civil engineering work it completed on a floodplain plan as an example, up until Rettew accepted the Point Township engineer’s proposal, which it had previously rejected.
Encina asserts Rettew did not supply:
* The quantity and type of permissions needed for the project, or the time and expense involved in acquiring them.
* A precise approval schedule mandated by the state Historic Preservation Office.
* Take note that an outside environmental specialist will be required.
According to Encina, it has paid Rettew about $520,000 for work that is yet unfinished or for which it did not get full payment.
Encina has violated the two agreements by failing to pay eight invoices that were submitted in 2023, notwithstanding Rettew’s claim that it finished the job as required.
The Save Our Susquehanna citizens group had opposed the proposal, citing possible negative effects on the ecology and human health. The Northumberland Borough Council officially opposed it.
Encina declared in a press release in April that it had abandoned the project’s objectives and will instead pursue other ventures in Southeast Asia, the United States, and Saudi Arabia.
According to Encina, the decision to move the project led to large losses of non-transferable assets.
In February 2022, Rettew and Encina signed a professional services agreement for a variety of services associated with the proposed recycling project.
A post-construction storm water management plan and different permit applications were reviewed, river and archeological investigations were carried out, a traffic impact analysis was completed, and wetlands were delineated.
In April of that year, the parties signed a consulting agreement whereby Rettew agreed to pay an hourly fee for whatever extra time the engineering firm needed to do the work under the previous agreement.
The property is still leased by Encina through a subsidiary from DRIVE, an economic development organization that serves the counties of Columbia, Montour, Northumberland, Snyder, and Union.
According to its executive director, Jennifer Wakeman, there have been talks about terminating the lease because DRIVE wants to market the property.
According to a representative, Encina is still dedicated to working with DRIVE.
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