ST. PAUL — St. Paul officials have agreed to pay what could be the third-largest settlement in city’s history for a lease dispute.

Reports said the city has reached an $800,000 settlement with the owner of the Como Lake pavilion cafe to avoid going to trial for damages.

Black Bear Crossings on the Lake has operated at the pavilion since April 2000.

The owners filed a civil lawsuit last year when the parks department declined to extend their five-year lease, despite a five-year renewal option written in the contract.

In May, a Ramsey County District Court judge ruled the city failed to present evidence justifying its decision to breach its management agreement with the vendor.

The city council will vote on the proposed resolution Wednesday.