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Okoboji Settles Lawsuit With Development Firm

November 23, 2014

(Okoboji)– The Okoboji City Council Tuesday signed off on a settlement agreement with the River Oaks Land Development Corporation, which is planning a subdivision on the north side of Brook’s Golf Course.

Terms of the settlement call for the city to pay 43,984-dollars in exchange for the company dropping any litigation against the city in connection with the case.

City Attorney Mike Chosen says it stems from a misrepresentation that was made to the company. He says River Oaks was inadvertantly told by city officials that the area of the proposed development is in the city’s water service territory, when it actually is in Clay Regional Water System’s service area.

The council also Tuesday granted a request allowing Jean’s Boutique and the Barn Swallow to hard surface their parking areas over a two year period. The businesses say their plans were delayed by negotiations they had to go through with Iowa Department of Transportation when it was discovered a portion of their parking area was on state right-of-way.

The council took no action on a proposal to apply for a grant from the Racing Association of Central Iowa, or RACI, for a street lighting project. RACI is funded by gaming proceeds from Prairie Meadows. Councilman Jim Delperdang is concerned over what the public’s perception would be if the city receives a grant funded by gaming revenues and then goes on record opposing any local gambling operation.