The North Las Vegas City Council approved $6.3 million to settle a lawsuit over a botched land deal.
The settlement includes an installment plan for the city and interest is factored into the payments.
A Clark County District Court judge and the Nevada Supreme Court found the city jilted landowners along North Fifth Street when it targeted portions of properties for condemnation in 2004 as part of its plan to widen the street, but never followed through under the strain of the recession. The city was ordered to pay $4.3 million. The city made a $1.5 million payment in October.
The city must pay $1 million more once the settlement is signed by both parties. Next, the city will pay $1.9 million in July of 2015 and $1.9 million in July of 2016.
The settlement comes after the U.S. Supreme Court denied city efforts for a rehearing in August.
It’s a budget blow to a city that’s shouldering an anticipated $152.5 million long-term deficit.
To cover the costs, the city will get a letter of credit from a lender to cover the two $1.9 million payments in 2015 and 2016.
City planning documents showed that upon development approval, landowners would have likely had to give up a 75-foot right of way on their land next to North Fifth Street, according to court filings.
The settlement will go to limited liability company 5th & Centennial, owner of nearly two dozen undeveloped acres targeted for condemnation.
Contact Bethany Barnes at firstname.lastname@example.org or 702-477-3861. Find her on Twitter: @betsbarnes.