Realen Valley Forge Greenes Associates, the Berwyn developer, will pay $12 million, according to a statement issued by the township. Half will go to the Hankin family and the rest to the township as prepayment for sewer capacity and development fees.
The township said the pact resolves a complex web of state and federal lawsuits that had kept most of the work from starting on the 135-acre site north of Route 202 beside the King of Prussia mall.
The settlement also halts a federal civil rights action that was due to go to trial in several weeks, according to the township's statement.
"The time has come to finally end this litigation, which dates back approximately 30 years," said Erika Spott, chairman of the Board of Supervisors. "It is the right decision for Upper Merion."
Negotiations had begun late in 2011. Spott praised the agreement, which was reached June 8, and said Thursday night's meeting was held especially to meet the tight federal court deadline.
"The settlement allows the township and the Upper Merion School District to reap the tax benefits of future site development, which could exceed $300 million over the next 25 years," Spott said in the statement.
Dennis Maloomian, president of Realen Properties, said he was pleased at the settlement.
"We are delighted that we were able to facilitate the resolution of this long-standing dispute between the township and the former owners of the property, and we look forward to working with Upper Merion on future development of the Village at Valley Forge," Maloomian said.
While the litigation was pending, infrastructure for the project was installed, including ramps off the Pennsylvania Turnpike and the Schuylkill Expressway, Maloomian said.
A storm-water management system was put in place, "but we didn't develop the site," he said.
The $1 billion project is expected to include a main street with retail stores, a variety of residential housing types, office space, parking, a medical facility, and one or two hotels.
"It is going to take years," Maloomian said.
Max A. Hankin and his wife, Janet, of Horsham, are deceased. No other member of the Hankin family could be reached for comment.
Contact Bonnie L. Cook at 610-313-8232 or email@example.com. Read her blog, "MontCo Memo," at www.philly.com.