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Wichita to settle management-contract suit with Genesis Health Clubs for $219,000
Summary
After months of questioning about missed payments and contract oversight, Wichita city attorneys recommended and the council approved a $219,000 settlement that resolves the city's claims against Genesis Health Clubs and removes Genesis's $1.86 million countersuit risk; larger claims against the chiller contractor remain pending.
Wichita city attorneys recommended the City accept a settlement from Genesis Health Clubs Management LLC to resolve litigation over unpaid management fees tied to the city-owned ICE Center. Jennifer Magana of the city law department told the council the district court's interpretation limited the city's recoverable damages under the contract, and the negotiated figure reflects the damages available under that ruling.
Magana summarized the contract timeline and the city's efforts to collect unpaid debt dating to invoices first billed in 2017.…
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