Title
Resolution to Accept Settlement Offer to Resolve Dahlmann v City of Ann Arbor, 22nd Circuit Court, Case No. 18-133-CK
Staff
Prepared by: Stephen K. Postema, City Attorney
Body
Whereas, The City negotiated a real-estate transaction with Dennis A. Dahlmann and, in 2014, closed on that transaction with Mr. Dahlmann and his company Fifth Fourth, LLC (Dahlmann and Fifth Fourth collectively being "Dahlmann");
Whereas, As a result of the transaction, Dahlmann paid the City $5,250,000, and the City made and delivered to Dahlmann, and Dahlmann accepted, a deed that granted Dahlmann a conditional and limited interest in a parcel of downtown Ann Arbor real estate known as the "Y Lot";
Whereas, The deed the City made obligated Dahlmann to develop the Y Lot in a certain fashion within 4 years, or title would revert to the City with its payment of no more than $4,200,000;
Whereas, Dahlmann did not develop the Y Lot and the 4 years have now passed;
Whereas, Dahlmann has sued the City in Washtenaw County Circuit Court, Case No. 18-133-CK, claiming breach of contract, mutual mistake, quiet title and other claims, and seeking damages, monetary remedies, as well as equitable relief, including rescission, reformation, specific performance and title to the Y Lot in fee simple absolute;
Whereas, The City disputes all of Dahlmann's claims, moved to dismiss, and has now filed an answer, affirmative defenses and a counterclaim to quiet title in the Y Lot in its favor;
Whereas, On May 1, 2018, by unanimous resolution, the City Council authorized the payment of the $4,200,000 to facilitate the City's exercise of its reversionary right;
Whereas, Dahlmann, around that time, rejected that payment;
Whereas, Before that time and since, the parties have engaged in extensive settlement negotiations;
Whereas, Dahlmann has made a settlement offer to the City in the form of a signed, written settlement agreement, a copy of which is attached;
Whereas, Dahlmann's offer includes: (...
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