By Khara Lewin, CNN
(CNN) - A now defunct suburban Philadelphia swim club has agreed to a settlement more than three years after being accused of racism and discrimination for denying children from a largely minority day-care center access to their facility, the U.S. Justice Department said.
Under the terms of the deal with the Justice Department and the Pennsylvania Human Relations Commission, the Valley Club of Huntingdon Valley - which filed for bankruptcy in November 2009 and had its property sold for $1.46 million the following June - agreed to payouts to more than 50 children who were part of the Creative Steps Day Care Center, their counselors and Creative Steps itself.
The distributed money includes whatever "remaining assets" from the sale of the club's property to Congregation Beth Solomon of northeast Philadelphia are leftover, once closing costs and associated fees have been covered, the Justice Department said Thursday in a press release.
The settlement also sets aside $65,000 to create a leadership council made up of former Valley Club members, Creative Steps counselors, campers and their families.
"No one may be denied the right to use a swimming pool because of their race or the color of their skin," said Thomas E. Perez, the assistant attorney general heading the federal department's civil rights division.