BALTIMORE — Maryland’s Board of Public Works approved a $58.5 million settlement Wednesday to resolve longstanding litigation over Baltimore’s State Center development project, clearing the way for new development plans after nearly two decades of delays.

The settlement will be paid in two installments: $40 million before Dec. 9, and the remaining $18.5 million following the 2025 legislative session, no later than July 1, 2025.

“The delays caused by the ongoing litigation have created questions about the future of State Center, delayed critical planning, and blocked much-needed investment and redevelopment in the City of Baltimore,” Gov. Wes Moore said.

The dispute dates back to 2006, when the Ehrlich administration first proposed redeveloping State Center through a public-private partnership. The project stalled due to lawsuits, and the Hogan administration canceled it in 2016, leading to additional litigation. A 2022 attempt to transfer ownership to Baltimore City never materialized due to ongoing legal issues.

Comptroller Brooke E. Lierman praised the resolution, noting that delays had created unnecessary costs for taxpayers. Treasurer Dereck Davis called the settlement a path toward “visionary redevelopment.”

Baltimore Mayor Brandon M. Scott welcomed the agreement, calling the settlement “a critical first step” in moving the project forward.

The governor’s office will establish a work group of state and city leaders to review existing plans, conduct community outreach, and develop recommendations for the site’s future use.