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Boulder has agreed to pay two developers $2.6 million to settle a lawsuit they brought last month over claims they were shorted money on housing and parking projects at Depot Square in Boulder Junction.

The agreement must be finalized by a vote of the City Council on Tuesday.

Should the council OK the deal, the developers — Scott Pedersen and Jeff Shanahan, of 3001 Pearl LLC — will receive about $600,000 less than the two parties originally had agreed to, but on a speedier timeline than once planned.

Shanahan said the agreement was reached after 17 hours of mediation.

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