LORAIN — Some residents began signing on the dotted line in order to get refunds mandated by a county court’s decision to settle the controversy between the county and the city over abatements given to residents in the city’s community re-investment areas.

But an Elyria attorney representing more than 110 CRA residents is accusing the city of misleading residents and is telling his clients not to sign because of a case that is pending in the state’s high court.

“I’ve put (Lorain) on notice that because of the misleading way it sent these letters out to these property owners, and because they sent them directly to property owners when they … should have sent the letter to me,” Elyria attorney Eric Zagrans said. “We consider it null and void because of the confusion that it caused and because of them doing an end run around me.”

The refunds, averaging about $400 to $500, are for abatement application fees, based on square footage, paid by residents living in CRAs located downtown and on the city’s west side. The CRAs had given people a 15-year, 100-percent abatement in exchange for building in the designated areas.

But County Auditor Mark Stewart objected to the abatement in 2006 when the city made the tax abatements retroactive to 2000, prompting at least two years of legal battles.

An agreement between Lorain Mayor Tony Krasienko and Stewart that was recently approved by a county judge ordered the application fees refunded.

Representatives from the city’s Community Development Department and the city Auditor’s Office have scheduled time to meet with Lorain residents through next week so residents can sign the order, which states they agree with the court’s decision.

Geoffrey Smith, assistant law director in Lorain, said the consent order must be signed by residents in order to get the refund.

“We want an end to the litigation,” Smith said.

But Zagrans says the fight will be resolved by the state’s high court, and that any resident who signs the consent order will “absolutely” be giving up their rights in the Ohio Supreme Court case.

The “overwhelming majority” of Zagrans’ clients built their homes before 2006, which means that under the agreement between the city and Stewart’s office those homeowners would receive a one-year full abatement. Zagrans wants those homeowners to get the full abatement.

“It’s a crime what’s being done to these people,” he said. “The city was fully supporting the right of these 355 properties to get the full 15-year, 100 percent abatement all along up until now. Now they’ve entered into a settlement and they’re trying to lure people into a different position, a contrary position, and that’s wrong.

“The case that we are bringing to get that tax abatement for everyone is in the Ohio Supreme Court and it involves the county auditor as the responding party and the city is not a party to that case.”

Some residents who lost their abatements as part of the settlement were irritated Friday as they showed up at City Hall to sign paperwork so they could get the refund.

Jim Gocek who lives in Morningside, a 55-and-older community on the city’s west side, called the form “blackmail.”

Gocek, 68, said the whole process has created an atmosphere of mistrust between residents who built or bought in a CRA and the city.

“We’re all very mistrustful of Council and the city,” he said. “We want it done and over with … We’re not going to sue the city, but it’s hurt the trust. It has led to feelings of mistrust and irritation.”

Residents can continue to meet with city officials about their refunds 10 a.m. to 9 p.m. Monday through Thursday in Council chambers at City Hall.

Contact Alicia Castelli at 329-7144 or acastelli@chroniclet.com.