The Spokane City Council gave the go-ahead Monday to seek settlements with two parties in a federal lawsuit related to the River Park Square parking garage.

The council voted 5-2 to offer a settlement to the nonprofit Spokane Downtown Foundation, which sold $31.5 million in bonds in 1998 to finance the garage.

When the garage failed to perform as expected, bondholders sued in federal court, alleging fraud. The city earlier this year paid off the bondholders and took over the case. It has been seeking settlements from other defendants.

Under the proposed settlement, the foundation would pay $900,000 to the city. The garage title would be turned over to federal court, pending the lawsuit’s outcome.

In a separate 4-3 vote, the council approved a contingent settlement with RWR Management, which worked as property manager for the developer. RWR would pay the city $500,000 from its insurance assets, if the insurance company covers the loss to RWR. RWR owner Bob Robideaux would waive his attorney-client privilege and testify on the city’s behalf.