Minneapolis has reached a settlement with a city employee who made allegations against her supervisor, former city Empowerment Zone Director Jonathan Palmer.

The City Council on Friday voted to pay Melissa Heus $15,000 to settle a claim against the city and Palmer. Although the city described her claim only as employment-related, sources told the Star Tribune it involved a claim of sexual harassment.

Heus worked for Palmer in the Empowerment Zone program, a federally funded, city-run community revitalization program that will end soon. Palmer left his $72,530 per year job on Dec. 19 after Heus' allegations. Heus still works as an administrative analyst for the city.

The city and Palmer denied her allegations, according to a staff memo. However, the city sometimes pays such claims if the cost of defending them exceeds the amount claimed. Heus sought to address the council during Friday's meeting, but was told that that is contrary to council procedures. She declined to speak with the Star Tribune.

Palmer, a former neighborhood organization staffer, is now the executive director of Hallie Q. Brown Community Center in St. Paul. He declined to comment Friday.

Steve Brandt • 612-673-4438