SANDPOINT — The Idaho Transportation Department and the operator of a marina on Sand Creek affected by construction of the U.S. Highway 95 bypass have resolved their legal disputes.

Waterfront Property Management President Ralph Sletager and Idaho Transportation Board member Jim Coleman announced the settlement on Wednesday. The announcement followed two days of mediation.

The terms of the settlement were partially disclosed and the parties indicated there would be no further comment.

The settlement includes the dismissal of Waterfront’s appeal of an Idaho Department of Lands encroachment permit for the Sand Creek Byway and ITD’s consent to permit replacement of boat slips at Sandpoint Marina.

There was also a financial settlement involving an undisclosed sum without admission of liability by either party.

“The parties agreed that the settlement was in their mutual best interest and complemented one another on the willingness to make peace and move forward constructively. The parties have agreed not to comment further,” a news release said.

The settlement resolves a 2007 suit Waterfront filed against IDL over the encroachment permit and a 2008 suit ITD brought which led to the removal of docks near the mouth of the creek.

The dock dispute held up construction of the rerouting project.

The state argued the docks were an illegal encroachment on a public right of way, but Sletager countered that the docks had been there for decades and undergone permitting processes several times over.

When the dispute boiled over in November 2008, Sletager said as many as 25 docks were affected, which he estimated would cost his business a half a million dollars in revenue over a 10-year period.

Counsel for the state contended that the illegal encroachment threatened to delay bypass construction for up to a year, which would have cost taxpayers millions.