The city of Minneapolis is poised to settle with a city employee Monday, who said her boss tried to sexually assault her.

Her boss not only denies the allegations, but also quit his job in the middle of the investigation to run for state office.

If approved, this settlement will cost taxpayers $15,000 dollars. If approved by the full council, it would come at taxpayers expense.

In a police report filed Nov. 30, 2007, Melissa Heus claims her boss, Jonathan Palmer, harassed her and tried to assault her.

Palmer had been the director of the Minneapolis Empowerment Zone, an agency which encourages economic growth, for three years before the allegations.

He resigned a month after the alleged incident, but continued to deny all allegations. At the time, Palmer told 5 EYEWITNESS NEWS he stepped down to focus on his run for the Minnesota House of Representatives.

He has since missed the filing deadline. He will not be on the ballot in November.

Both Heus and the city declined to comment Monday. Palmer did not return phone calls or answer his door.

The City Council is expected to cast the final vote on the settlement Friday.