BRISTOL, Va. (WJHL) – A lawsuit filed by the City of Bristol, Virginia against the Bristol Virginia Utility Authority (BVU) in 2020 could reach its end this week.

A proposed settlement between BVU and the city will be discussed by both parties. Tuesday night, the Bristol, Virginia City Council approved the proposed settlement. BVU leaders have called a special meeting to discuss it Thursday.

The lawsuit stems from claims by the city that BVU owed the city millions of dollars under an agreement that the parties would split proceeds from the sale of BVU’s OptiNet Division years earlier. The city claimed in 2020 that BVU had not given the city any money from the 2018 sale and further stated that BVU had retroactively reinstated debt owed to the utility provider in order to keep all the proceeds from the sale.

A proposed settlement between BVU and the city would release both parties from any claims, demands, actions or liabilities. It would also require BVU to make a one-time cash payment to Bristol in the amount of $2.1 million. That payment would be made within 30 days of the settlement being signed.

Additionally, the settlement outlines guidance for BVU’s future Payment in Lieu of Taxes (PILOT) Payments.

On the city’s part, the settlement states that BVU will remain as Bristol’s trash bill contractor and will be compensated at a new higher rate of 8.5% of the amount billed.

Also spelled out in the settlement are procedures for the development of a property at Bonham Rd. and Old Airport Rd. The city has a “land sales or development option agreement” with developer KBM Commercial Properties. The settlement would grant BVU authorities regarding the development.

The proposed settlement can be read in its entirety below:

When the lawsuit was first filed in 2020, Bristol demanded a jury trial and sought at least $6.5 million in damages.