The City Council has approved a $2.75 million payment to Allenmore Medical Investors in accordance with an order issued by a U.S. District Court judge who ruled months ago that the city was wrong to apply a moratorium to permit applications for Tacoma’s Walmart.
Judge Ronald B. Leighton ordered Tacoma to pay a little over $2 million in a ruling earlier this year, but attorney’s fees and other charges hadn’t yet been calculated at that point. Those added costs pushed the total to $2.75 million. The City Council approved the payment at Tuesday night’s regular meeting.
AMI filed the lawsuit in 2014 claiming the city, and specific council members, wrongfully applied a moratorium to permit applications that were filed to develop a Walmart in Tacoma.
While Leighton ruled the city legally enacted the moratorium, the judge found city officials improperly interfered with AMI’s business, dragging out the permitting process and costing the developer more money in the process.
“The City will pay the settlement amount using funds from a separate City account outside the General Fund budget, which is allocated to pay claims against the City,” according to a news release issued by the city Wednesday. “This settlement payment will not impact the City’s ability to provide essential services to Tacoma residents.”