The Michigan Court of Appeals affirmed in part, vacated in part, reversed in part and remanded further proceedings back to the Washtenaw County Circuit Court a $2.4 million judgment brought against Sylvan Township by a developer over sewer and water connections for a subdivision that’s yet to break ground on Sibley Road.

Sylvan Township Supervisor Bob Lange said Pete Flintoft, the township’s attorney, will meet with township officials Wednesday to explain what the decision means to the township.

The court upheld the judgment from the circuit court that voided the $8 million special assessment district that was supposed to pay for the subdivision's water plant and sewer connection.

The township still needs to determine the financial impact of the ruling.

Unclear is whether the township will have to pay the $2.4 million judgment in damages awarded to Norfolk Development Corp. and whether the township will have to reimburse the county the $1.2 million it paid the township for the special assessment costs when the developer stopped paying.

Lange said he believes the township would still be on the hook for the $9.4 million in bonds to construct the sewer and water systems, which were backed by the county’.

Lange added that Flintoft will update the township on the 7-page decision on Wednesday.

The township also plans to meet with County Commissioner Rob Turner, who has been working with the township, and other county officials in early June to negotiate the possibility of spreading out the bond payments over 20 years.

Norfolk won the judgment after alleging breach of contract when the township chose to connect to an existing sewer treatment plant in Leoni Township rather than construct its own facility. Norfolk sought the sewer connections because it was developing Westchester Farms on 162 acres of property off Sibley Road in the north end of Sylvan Township that included 262 homes and 64 townhouse condominiums.

The trial judge awarded the developer fees and costs associated with sewer and water service.

A motion for a stay of payment was filed on Nov. 9, the Court of Appeals heard the township’s appeal in March and the decision came Friday.

Lange said the township can make the October 2011 interest-only payment of about $176,000, but the township doesn’t have the money to pay the April 2012 payment.

Earlier this month, Flintoft told more than 65 Sylvan Township residents gathered for a public meeting that if the county commissioners would work with the township to renegotiate the $10.6 million it owes for the bonds over 20 years, the debt repayment would cost township residents about an additional 3.15 mills per year in taxes.

Lange said additional business hookups to the system could help offset the debt.

If the county agrees to the long-term plan, the owner of a $200,000 home with an assessed value of $100,000 would pay an additional $315 levy per year. Today, the township levies 0.9474 mills.

Meanwhile, a lawsuit suit was filed in Washtenaw County Circuit Court against Foster, Swift, Collins and Smith P.C., the attorneys who represented the township in its agreements with the developers. The suit alleges malpractice. The first case evaluation on this suit is expected to take place May 12, 2012, Lange said.

Lisa Allmendinger is a regional reporter for AnnArbor.com. She can be reached at lisaallmendinger@annarbor.com.