HUNTSVILLE — The Huntsville-Walker County Chamber of Commerce has delivered its $361,000 check to the city of Huntsville in fulfillment of a settlement between all parties in a near three-year dispute over use of hotel occupancy tax funds.

The chamber delivered the check to City Hall on Tuesday and all relevant settlement documents have been signed, Mayor Mac Woodward confirmed Thursday afternoon.

The Huntsville City Council unanimously approved the settlement amount Jan. 17 following court-ordered mediation.

A Leon County district court jury in October 2010 originally awarded the city, plaintiffs in a civil suit against the chamber, more than $470,000 in misspent HOT funds; HOT funds spent without the required documentation; attorneys’ fees; and interest. The court found both the chamber and former chamber president Dee Everett liable for the judgment amount.

The chamber subsequently filed a motion for new trial — which was denied — and then an appeal.

The final cost the city incurred in litigating the chamber suit was $263,701.67, including $1,400 in mediation costs, according to Winston Duke, the city’s finance director. Litigation was funded with HOT funds. The settlement funds will be deposited into the city’s HOT fund account to be used for tourism-related expenses in accordance with the tax code, city officials said.

Payment of the settlement in one lump sum Tuesday resolves all claims against the chamber and Everett, city officials said.

Chamber officials said the settlement amount was paid substantially by insurance. They and Everett declined to say what portion of the settlement the chamber paid and what portion Everett paid.

“I don’t think that’s anything I can get into,” Everett said when contacted Thursday afternoon. “I’m just glad we can all put this behind us.”

A call to the chamber’s attorney, Levi McCathern of Dallas, was not returned to The Item by press time.

Those representing both sides of the civil trial said they are relieved to have the suit behind them.

 “We are happy all parties were able to agree on a settlement and are excited about the opportunities to build on our relationship with the city to better serve the needs of our community,” said Carol Smith current chamber president in a prepared statement Thursday.

Woodward said he looks forward to working in partnership the chamber.

“We’re glad the issue’s been resolved and we can both move on,” Woodward said. “I think it’s important that the city and the chamber can cooperate for the good of the city.”

During the dispute, the city ended its contract with the chamber to administer HOT funds and took over control of the hotel occupancy taxes, which the city collects. Woodward said there has been no discussion between the city and chamber to initiate a new contract for administration of the funds.

“The current system is working very well,” he said.



Tori Brock contributed to this report.