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The city has agreed to pay former Alameda Point developer SunCal more than $4 million to settle the developer's claims the city and its former manager failed to negotiate in good faith toward a development deal, a move that ends the developer's quest for money from the city along with another chance to develop the Point.

Under the terms of the agreement unanimously agreed to by the council, including two outgoing members, on Tuesday - but not announced at the conclusion of the closed session where the decision was made - the city will pay the Irvine-based developer $3.177 million over the next 18 months and return SunCal's $1.073 million deposit, the city announced in a press release issued an hour after City Hall closed on Wednesday.

City officials said the cost of pursuing the case would have outpaced the settlement the council approved, though it was not clear Wednesday how much the city has already paid to defend itself against SunCal's suits.