The state appeals court upheld a ruling that the Indianapolis City Market owes $42,000 to settle a lawsuit stemming back to the market’s 2007 renovation.

In an opinion issued today, the court decided the Downtown market, which is owned by the city and run by a nonprofit board, will have to pay the settlement to the owners of Grecian Garden. The tenant sued the city because it was left in an isolated area of the market after the renovation, causing the Greek restaurant to lose business.

A judge ruled for Grecian Garden and in April ordered the City Market to pay the business $42,382. The city appealed the decision.

Chris Cotterill, the city’s corporation counsel, said the city now has the option of asking the Indiana Supreme Court to review the case but had not yet determined whether they will. The city would be responsible for the settlement. The city has contributed $247,000 in other subsidies to keep the financially strapped market afloat so far this year.

The ruling comes as leaders are looking for ways to revitalize the market and make it self-sustaining. On Thursday, city leaders issued a request for information to solicit ideas from private investors who could operate the market’s east and west wings.

Cotterill said the lawsuit is another setback for the market attributed to the 2007 renovation, which ran over budget and took longer than expected.

“More of the problems we inherited with the city market are causing significant strain on the current and future renovations of the market,” Cotterill said. “It only makes matters harder when you have a problem like this from the past to clean up.”