Sturgeon Bay city council members voted 5 to 2 Tuesday to override a veto of a $360,000 settlement agreement with Robert Papke.
Papke was the developer of a west-side hotel that was blocked when The Friends of the Sturgeon Bay Public Waterfront challenged the right of the city to sell the former lake-bed property to Papke.
Papke then sued the city for more than $500,000, claiming he was misled by city officials who did not inform him that title to the property was in question.
The council approved the settlement two weeks ago by the same vote only to have it vetoed by Mayor Thad Birmingham. Council members Seth Wiederanders and David Ward voted against overriding the veto.
Birmingham said Tuesday he opposes the settlement to Papke because six different attorneys advised against it.
Council member Laurel Hauser said that by not settling, Sturgeon Bay could be involved in litigation for many years.
Settling now was called the best option for the city by council member Kelly Catarozoli. She said that the city has been held hostage by the lawsuit.
The council went into a short closed session regarding another pending lawsuit with Friends of the Sturgeon Bay Public Waterfront. Council members did not return to open session or announce decisions made in the closed session.