COEUR d'ALENE - The Idaho Department of Lands today plans to give Coeur d'Alene Silver Cup hydroplane race organizers an important permit for races on Lake Coeur d'Alene near Silver Beach in July.

Jim Brady, lands and waterways resource supervisor for the department in Coeur d'Alene, said Monday the agency was drafting the permit and it should be completed and handed over today.

Keith Allen, general manager of Silver Cup, said a permit from the state to use the lake the weekend of July 17-19 is critical to obtaining other permits for the races. This permit is good for three years.

"It's clearly the most important one," Allen said Monday.

Organizers have applied for all the other permits, too. A meeting with the Kootenai County Sheriff's Office is scheduled for Thursday, as race organizers seek a marine permit from the law enforcement agency.

On July 1 last year, Sheriff Ben Wolfinger denied a separate group of race organizers a marine-event permit for what was called the Diamond Cup after that group had failed to meet "several of the required criteria for the event by (the sheriff's) July 1, 2014, deadline."

At that point, Diamond Cup officials still had not obtained a Department of Lands permit for the event planned for Labor Day weekend last year. They received the permit later that month.

Steve David, chairman of hydroplane race sanctioning organization H1 Unlimited, said Monday that a legal settlement has been reached between H1 and Diamond Cup organizers.

The settlement ends legal action between the two parties and clears up debts owed to H1 by Diamond Cup.

Diamond Cup owners owed H1 tens of thousands of dollars from the 2013 event.

"All the issues are resolved," David said. "We're glad we're able to wrap things up and have a successful event this year."

As part of the settlement, the Diamond Cup officials pay a reduced amount and H1 gets to have a race in Coeur d'Alene.

"All of us felt it was a reasonable outcome," David said.

John Magnuson, the attorney for Diamond Cup president Doug Miller, was not in the office Monday. Miller couldn't immediately be reached for comment.

Allen also said Monday that Silver Cup organizers have recently received notice from the IRS that their group now has official status as a 501(c)(3) nonprofit.

"Our commitment was to show we're going to be different" from Diamond Cup, Allen said. Diamond Cup was operated as a limited liability company.

"We want to give back to the committee," Allen said. "This allows us to do that."