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Posted: December 27, 2019
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF123119 07

Agenda Item Title:

Authorize the Mayor and Finance Officer to sign a Settlement Agreement Between the City of Rapid City and Yasmeen Dream, L.L.C.

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
12/31/2019
City Council Hearing Date:
01/06/2020
Staff Contact:
Joel Landeen, City Attorney
Agenda Item Summary:
This agreement resolves the two lawsuits filed by Yasmeen Dream for its developments on the south side of Highway 44 (Johnson Ranch & Orchard Meadows). The lawsuits related to a water main that was located on the property and alleged damages from a leak in that water main. The City acknowledges the relocation of the water main will provide a benefit for which the City should contribute financially, but due to the question of who was legally responsible for moving the main the parties could not agree on an amount the City should pay. Since the lawsuit was filed, the Court ruled that the City was not legally required to relocate the main. This decision allowed the parties to reach an agreement that the City should contribute $150,000 to the cost of relocating the main. While the parties still disagree about whether or not the water leak damaged Yasmeen Dream’s property, Yasmeen Dream has agreed to forego its damages claim in order to get this matter resolved. In exchange, the City has agreed to work with Yasmeen Dream on resolving drainage issues for these properties.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center
After discussing it with the Finance and Public Works Departments, we will make the payment out of the liability fund rather than the CIP fund. This will avoid the necessity to reprioritize the CIP or move currently scheduled infrastructure projects.

Recommendations:

Origination Recommendation Action:
Approve
City Council Options:
If you reject the settlement, the litigation will continue. In addition, Abbott House is currently slated to build at a location where the existing water main is located. If the water main is not relocated and it delays the project, Abbott Housing may lose funding and the project could fall through.
Published in 2019 - LF Agenda Items

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