Riverwalk fire claims settled for $36.2 million

A $36.2 million settlement has been reached in the devastating fire in Conshohocken 14 months ago that destroyed an apartment complex and set back one of the nation's most successful aging-town revivals.

"This is an amazing result in such a short period of time," Robert J. Mongeluzzi, who represented tenants who filed suit within days of the Aug. 13, 2008 fire, said today.

Developer Brian O'Neill, who owned the site where the fire started called the blaze "a monumental tragedy" but said the quick settlement was "unprecedented" noting the litigation stemming from the Meridian fire in Philadelphia took 12 years to settle.

"I'm here to close the book on a tragedy that I hope will never occur again," said O'Neill.

The fire was blamed on the spark from a welder's torch at a construction site next to the Riverwalk complex. The fire destroyed two Riverwalk buildings and 189 apartment units.

Under terms of the settlement, which includes all litigation in the case, no party admits guilt.

Back in April, a Montgomery County judge ordered the parties to begin settlement negotiations. Mongeluzzi in August expressed frustration that no progress was being made and held a news conference at which displaced tenants expressed their complaints.

Asked yesterday if that event helped speed up the negotiation process, he said, "One can only speculate."

Under terms of the settlement, $27 million will go towards building the Riverwalk towers and 9 million will go to about 200 tenants.