The city of La Salle, Illinois has agreed to refund $350,000 and a tax reduction of approximately $500,000 to XPO Logistics as part of a settlement over a property tax litigation going back to 2010. The La Salle City Council on Monday approved authorization to execute the settlement agreement said Jim McPhedran, the city’s attorney.

XPO Logistics, formerly known as Con-Way Freight, owns and operates a trucking terminal and warehouse on the east side of La Salle on U.S. 6.  XPO Logistics Inc. acquired Con-Way Freight in 2015.

XPO Logistics was represented by Mary Kathleen Fitzgerald with Fitzgerald Law Group with offices in Chicago and Burr Ridge while the city was represented by attorney Scott Ginsburg of the Chicago law firm, Robbins Schwartz.

XPO originally contested assessments for 2010-2011. The state Property Tax Appeal Board last year ruled in favor of XPO and revised property taxes for 2010-2011, resulting in a substantial refund plus interest of $140,651. The ruling was expected to carry into tax years 2012-2015, which would have brought the total refund plus interest to $506,421, according to the agreement presented to the City Council.

In order to avoid more litigation and possible additional losses, the city agreed to a settlement for tax years 2010-2020. Under the settlement the city is going to dismiss the case now pending in the Appellate Court of Illinois, XPO will be paid $350,000 and the assessed valuation of the subject property will be reduced to reflect an additional tax savings of approximately $500,000 during tax years 2016-2020.