Feds agree to a $7.5M settlement over Port O'Call building

The federal government has agreed to pay the owners of Port O'Call and the Shubrick Building $7.5 million in compensation for condemning the property to make way for the expansion of the federal courthouse in downtown Salt Lake City.

The tentative settlement resolves a condemnation suit filed by the federal government against the property owners, which was slated to go to trial next fall. The government had originally estimated the value of the building and property at $5.5 million, but property owners disagreed with the estimated value.

Expansion of the Frank E. Moss U.S. Courthouse at 350 S. Main has been in the works for several years. Part of the plan involved the demolition of the Shubrick Building at the southwest side of the block at about 60 West and 400 South. It has also involved the relocation of the historic The Odd Fellows Hall building, which is planned to be moved to the other side of Market Street.

A contract dispute between the project's contractor and subcontractor has stalled that building's move. Sally Mayberry, spokeswoman for the Government Services Administration's Public Buildings Service, said a private mediation session between Layton Construction and its subcontractor is expected to take place Wednesday in Wyoming with the goal of unlocking the stalemate over Odd Fellows Hall.

In addition to the recent settlement regarding the Shubrick Building, $40,000 was added to settle pre-condemnation damage claims and $75,000 was subtracted from the settlement to account for rent owed to the federal government. The resulting balance is $7.46 million.

The settlement is pending approval by a federal judge.

e-mail: gfattah@desnews.com