Lawyers for the city of Albany say they plan to press ahead with their civil action against a subsidiary of PepsiCo now that a mediation effort has failed.

The city council sued the subsidiary, SVC Manufacturing Inc., in February after the company announced last fall it would not go ahead with plans to build a Gatorade bottling plant, and perhaps a bottle-making factory, on land it had bought on the south side of Albany.

The lawsuit seeks about $105 million in damages for lost revenue now and in years to come.

Retired Judge James Goode convened lawyers for both sides in Linn County Circuit Court Friday to see if a settlement could be reached, but the effort failed. Mayor Sharon Konopa, a member of the city council's litigation committee on the case, said afterward the Pepsi lawyers had rejected a city offer and left.

Kerry J. Shepherd, of the Portland firm Markowitz, Herbold, Glade & Mehlhaf, which represents the city, issued a statement this morning in response to an inquiry from the Democrat-Herald:

"On behalf of the city of Albany, we will proceed with taking sworn deposition testimony of PepsiCo, as a corporate entity, as well as depositions of PepsiCo's individual witnesses," Shepherd wrote.

"We will also ask the court to establish a trial date, and we will work diligently to prepare for trial. We have a great deal of faith in the jury system.

"We look forward to presenting the city of Albany's case to a jury in Linn County Circuit Court for a decision on the damages caused by PepsiCo's failure to live up to its promises and commitments to this community."

Shepherd said depositions have not started, and the city has filed a motion to compel Pepsi to identify people who would testify on behalf of the company.

"PepsiCo has resisted that motion and is seeking to delay depositions," he said.

The law firm for SVC could not be reached in time for this story.

The city council scheduled an executive session on litigation as part of its work session this afternoon, and it was likely it would get an update on the Pepsi suit.