IRON MOUNTAIN — A settlement has been reached in a lawsuit filed by a local synagogue board against the city of Iron Mountain and several of its officials.

The Anshe Knesseth Israel Congregation sued in federal court in September over the city’s decision in 2019 to revoke its tax-exempt status. The suit also alleged the city’s contracted assessor, Patti Roell, had entered a synagogue building at 401 S. Kimberly Ave. without permission from the congregation, although the building was listed with a local realtor.

The settlement provides a $75,000 payment to the congregation for damages and attorney fees, with $60,000 coming from assessor’s insurer and $15,000 from the city’s insurer.

“The city has always denied liability but ultimately decided it was in the best interest of all involved to resolve the matter rather than spending additional money litigating the case into the future,” Iron Mountain City Manager Jordan Stanchina said.

In December 2019, the city council approved a special use permit to allow the building to be converted to a non-profit center to house 12-step programs. The zoning variance was needed because the former synagogue is in a residential area and has no off-street parking. Money was donated to purchase the property for the center, and the 401 Club opened its doors Feb. 14, 2020, registered as a non-profit corporation.