The settlement of a lawsuit will cost the city of Richmond, Ky., $700,000 at a time when it can ill afford another big expense, the Lexington Herald Leader reported.

In a special meeting today (Nov. 30), the Richmond City Commission approved the settlement of a breach-of-contract lawsuit filed last year by the developers of a proposed recreational vehicle park.

The developer sued after the city commission terminated a lease that would have allowed the development of Lakeview RV Park at Camp Catalpa Park, a 15-acre tract owned by the city that borders Lake Reba Recreational Complex.

Under the terms of the settlement, the payments will be staggered. Richmond must pay $500,000 on Tuesday — $50,000 of which will be paid by the city’s insurer, the Kentucky League of Cities Insurance Services Inc. The remaining $200,000 must be paid on or before July 30, 2011.