During a closed session Monday evening, the Knoxville City Council voted to settle their lawsuit with the Knoxville Veteran’s Alliance over money owed the city for the urban renewal project.
The City of Knoxville sued the KVA in small claims court in hopes to recoup some $3000 lost from legal costs due to the project. A judge ruled earlier this year that the KVA and another party did not owe the money to the city, because a memorandum on the project was not signed by both parties. The judgement also stated that the city had to pay back $3000 the KVA had already given them for the legal costs.
According to City Manager Harold Stewart, the council decided to settle rather than appeal the judge’s decision because the cost of the legal process could have exceeded the total owed and because the lawsuit put a lien on city properties. While the city is not happy with the verdict against them, they’re looking to move forward and feel they’ll get the money back once the property is leased.

