The city is settling an insurance claim over water damage at the new Winnipeg Police Headquarters.
A report to the City of Winnipeg's finance committee recommends council accept a $7.4 million dollar settlement and discontinue court action against the insurance firms involved.
The city was seeking an $8 million payout.
The report says most of the insurance claim has already been paid to the city.
In August 2014, a rain storm caused water to flood into the building.