TITLE
The Mayor and City Council shall discuss and take action to approve a Settlement Agreement with Estrella Gin Business Park, LLC. Discussion and Action.
AGENDA ITEM DESCRIPTION
In 2021, the City sold about 10 acres of property generally located at the southeast corner of Edison Road and Estrella Gin Parkway ("Estrella Property"). Thereafter, on April 4, 2023, the City abandoned a portion of Roosevelt Avenue to Paragon who was developing multi-family housing on the property east of the Estrella Property. Paragon used the abandoned portion of Roosevelt Avenue to construct a drainage ditch to benefit its development. After construction of the drainage ditch commenced, representatives of Estrella Gin noticed that the ditch was being built on what they believed to be the Estrella Property. On September 5, 2024, Estrella Gin Business Park, LLC filed a notice a claim against the City alleging $11,000,000.00 in damages and later filed a lawsuit for breach of contract, negligence and trespass due to the alleged impact this drainage ditch would have on their development site plan. Although the City believes both the conveyance of the Estrella Property and the abandonment of Roosevelt Avenue to Paragon was proper, the City also understands that the matter is complicated due to conflicting surveys and the use of plats dating back to 1919.
The parties attended mediation to attempt to resolve this matter on July 21, 2025. As a result of this mediation and based on the opinion of the mediator that both parties have substantial risk if this dispute were to go to trial, the parties agreed to the following:
- City will redesign and construct improvements to the existing drainage ditch to relocate the ditch to an area that allows Estrella Gin to continue to develop their property as planned.
- City will design and construct the western half street improvements to Roosevelt Road on the south side of the Estrella Gin Property.
- City will waive all permittin...
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