The Sacramento City Council agreed to settle a lawsuit over the value of the former Macy's men's store.
The parcel at 600 K Street was the last property needed to develop the new Sacramento Kings arena.
Under the deal, the city will pay a total of $12 million dollars: $7 million to US Bank and $5 million to the California Public Employees Retirement System.
The Sacramento Kings will reimburse the city for the cost of the property.
Sacramento Mayor Kevin Johnson said this about the deal:
"Good news. I mean, we've probably had to endure every lawsuit imaginable but to have our eminent domain one squared away and very close to getting our CEQA one squared away that means there's one lawsuit left and then after that, everything's behind us."
The CEQA case Johnson references involves a challenge to the city's environmental impact report, and the other suit involves a group of citizens who argue the city shouldn't spend the amount of public money it plans to on the arena.
The new arena is expected to open by fall of 2016.
-CapRadio News Staff