(Bloomberg) -- Long Beach, New York, a barrier island off Long Island's south shore, reached a tentative settlement with a developer who was awarded a $140 million judgment in May that threatened the city with insolvency.
The city agreed to pay developer Sinclair Haberman $75 million and permit him to build two, 13-story buildings with a rooftop penthouse on a long-vacant lot along the boardwalk, according to a letter of intent distributed at a council meeting this week. The city plans to vote to approve the agreement on Dec. 28 and intends to issue general obligation bonds to fund the payment.
Long Beach and Haberman have been warring since 1989. With interest accruing at $1.1 million per month, the city estimated the judgment in the Haberman litigation at $148.9 million.
Restructuring firm M3 Partners and law firm O'Melveny & Myers LLP helped negotiate the agreement.
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