University Estates developers will drop a $1 million lawsuit against the city, the code director and the mayor once the federal district court processes the signed settlement agreement, Law Director Garry Hunter said yesterday.

In the settlement, which council members approved by a vote of 6-1, University Estates representatives agree to follow the current city codes, and the city agrees to cooperate with them during the development process, said Councilwoman Carol Patterson, D-at large.

Both sides also agreed upon different zoning requirements and how final plans will be approved. The final plans of different phases of construction will be approved in parts, rather than as a whole, to accommodate the large-scale construction for the 830-acre development off state Rt. 682.

The development represents a 22-percent increase in Athens’ land area, Patterson said, and therefore will be given extended time periods to complete plans.

Councilman Paul Wiehl, D-1st Ward, voted against the ordinance allowing the settlement, saying the extension of the city is only a good idea if all city service departments are increased by 22 percent.

“We don’t have control of what they’re building out there,” Wiehl said.

Councilwoman Nancy Bain, D-3rd Ward, said she agreed with Wiehl, but “reluctantly” voted for the settlement.

“We are in a position that requires that an agreement must be made,” Bain said.

In other news, council approved a building project allowing more handicapped access to the Arts/West facility on West State Street.

The addition of a handicap ramp around the outside of the building into the basement will make it easier for guests to use the building, Patterson said. The main floor of the building is handicap accessible.

The $37,500 project is largely funded by a $25,000 grant from the state, and the rest is funded by a grant for community development.