The municipal council will vote on the by-law
LAC FOND – Two months after ordering the termination of the Lakeside Park development agreement, city council will vote a settlement with Lakeside Forward on Wednesday.
On May 12, the council voted to terminate the agreement, under which the Lakeside Forward business group would have contributed $ 6 million to add a multi-purpose building, an ice rink and an amphitheater at Lakeside Park.
However, the full termination of the agreement must be mutual between the city and Lakeside Forward, according to a note from City Attorney Deb Hoffman on the meeting’s agenda.
The proposed settlement would resolve possible legal claims and include reimbursement for what Lakeside Forward spent while the deal was active.
Between October 2020 and April 2021, Lakeside Forward spent $ 307,604.79 on engineering, construction and other professional services; $ 41,384.35 in legal services; and $ 13,304.21 in supplies and miscellaneous expenses.
In addition, Lakeside Forward is seeking $ 15,000 as reimbursement of various invoices and compensation for Lakeside Forward’s “waiver of its right to pursue the specific performance remedy,” according to the memo.
The total settlement payment would be $ 377,293.35 from City reserves, which will require an amendment to the 2021 budget.
Offer to settle must be approved by July 15 and be paid in full within 30 days of approval. Otherwise, Lakeside Forward would take legal action against the city.
According to the memo, Lakeside Forward wants to end this peacefully and without trial. When the business group received the city’s intention to cancel the deal, it began canceling contracts and returning in good faith what it had ordered to mitigate its damage.
Approval of the bylaw would not increase property taxes, and the city can pay them without violating its policy of having a 15% fund balance reserve for working capital.
According to the note, the settlement would resolve the matter more quickly and at a lower cost to the city than legal action, according to the note, if approved at the next meeting.
City council meets at 6 p.m. on Wednesday in the legislative chambers of the City County Government Center. Citizens are encouraged to watch the meetings live at fdl.wi.gov/city-council/webcasts/ or Charter Government Channel 980.