City Government

Dec 5, 2012 7:26 PM

Bozeman Commission to vote on Mandeville Farm settlement

BOZEMAN - Bozeman City Commission will consider approving a settlement agreement on Monday related to a years-old dispute over the Mandeville Farm property.

The proposal calls for the city to pay back $2 million to its insurance company Montana Municipal Interlocal Authority (MMIA) and its re-insurer Government Entities Mutual. It proposes the city makes three payments of about $666,666, plus interest, over the next couple years to their insurer. The city would also have to reimburse MMIA up to $1 million if it sells the property for a profit.

City manager Chris Kukulski says the money would come from the general fund, but may put some other city projects on hold.

"We had some projects that need identified that needed to be put on hold - the police department design at $250,000, Bogert Pool maintenance at $177,000 and Lindley Park at $175,000," he said.

The matter dates back to 2003 when the city purchased the 85-acre property and developer Mike Delaney sued the city for lost profits. The city was ordered to pay $3 million in damages, which MMIA paid at that time. But it was determined later that the city was not covered under insurance and would have to pay back MMIA.

The property is located near 7th Avenue and Interstate 90.

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