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City of <br />Elk — <br />River <br />Request for Action <br />To <br />Item Number <br />Mayor and City Council <br />4.14 <br />Agenda Section <br />Meeting Date <br />Prepared by <br />Consent <br />May 16, 2016 <br />Cal Portner, City Administrator <br />Item Description <br />Reviewed by <br />Settlement Agreement with Gray Plant <br />Reviewed by <br />Action Requested <br />Approve, by motion, a settlement agreement with Gray Plant. <br />Background/Discussion <br />During litigation for Pinewood Golf Course, our legal counsel identified a potential legal claim against the <br />firm hired to prepare the purchase agreement and contract for deed. <br />With City Council consent, counsel filed a claim in district court to protect the city's interests following <br />the outcome of the Pinewood litigation. Following the settlement agreement to complete the transaction <br />to acquire Pinewood, counsel initiated contact with the legal representation for Gray Plant to negotiate a <br />settlement in lieu of a trial. Gray Plant indicated a desire to mediate the claim. <br />Both parties successfully mediated on April 27, 2016, and the city council expressed consensus to accept <br />the agreement on May 2, 2016. <br />Financial Impact <br />Gray Plant will remit $410,000 to the City of Elk River to resolve the claim. <br />Attachments <br />■ Settlement Agreement <br />P a w E A E U s r <br />NaA f RE] <br />