The city of Richmond is not planning to sue the Virginia Commonwealth University Health System as part of their prolonged disagreement over a failed real estate deal.

For more than a year, the city and the state-affiliated health system have been at odds over $56 million that VCU Health promised the city in 2021 as part of the unsuccessful Clay Street real estate project . But state leaders have told VCU Health to stop writing the checks.

According to the contract, VCU Health’s latest bill of roughly $2 million is due Thursday.

Though VCU Health has not made a payment in more than a year, Richmond does not intend to file a lawsuit, said Mira Signer, a spokesperson for Mayor Danny Avula.

“Rather than pursuing litigation — which can be costly and time consuming — we are choosing a path

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