The City of St. John’s and the developer of Galway are likely going to battle it out in court.

It’s a disagreement significant to municipalities across the province because it was done in an attempt to encourage developers to build communities—not subdivisions.

Dewcor installed decorative street lighting which the city agreed to take over and maintain. In other subdivisions, the lighting is installed by Newfoundland Power for which St. John’s pays rent. There are no rental expenses in Galway—only maintenance expenses.

Galway’s Danny Williams says it is owed about $550,000 to reflect the savings the city will realize, but council says it’s too early to reach that conclusion.

Councillor Shawn Skinner, who was a member of Danny Williams’ cabinet, says the contract talks about savings over 50 years.

From a risk assessment perspective, Skinner says he thinks the risk is too high for the city to potentially pay any money, or mend the original agreement given they don’t know where they’ll end up in 50 years.