ORANGE COUNTY PERSPECTIVE : A Bargain at $9.6 Million

Orange County has done well in agreeing to pay only $9.6 million to settle a clutch of lawsuits involving the building of the John Wayne Airport terminal.

The relationship between the county and the terminal builder, Taylor Woodrow California Construction Ltd., was more strained than it should have been. Settling the lawsuit without the expense of a trial is even more welcome, especially because much of the payment had been held in reserve.

The settlement amounts to about one-third of the amount sought by Taylor Woodrow and subcontractors, and supports county officials’ insistence that they did not owe anywhere near the tens of millions of dollars claimed.

With the terminal, named for Supervisor Thomas F. Riley, operating smoothly since it opened nearly three years ago, it is easy to forget how rocky the road to completion was. The county got off to a poor start by badly underestimating what a new building would cost. After swallowing deeply, the supervisors awarded the contract to Taylor Woodrow, the low bidder, and watched costs climb. What was envisioned in 1989 as a $42-million building will now wind up costing about $66.6 million. There’s a lesson there for advocates of creating a commercial airport at El Toro Marine Corps Air Station when it closes.

Taylor Woodrow blamed the cost increases and delay beyond the scheduled opening date on county-ordered changes during construction. The county insisted it was not to blame, and the firm did not earn itself any goodwill when it asked for a $1.5-million bonus for completing the terminal almost on time.

As is usual in settlements, no one admitted being wrong. The county claimed victory. Taylor Woodrow proclaimed itself proud of the terminal. The public still does not know what it cost the county to defend itself in this case; that figure should be determined and released. The costs will undoubtedly seem high, since the county hired a Newport Beach law firm at fees of up to $270 an hour to assist county counsel. But if it helped save the county $30 million or so, it was worth it.