Excerpt:

he city of Alameda has agreed to pay more than $4 million to settle a lawsuit filed by SunCal, the developer that had planned to build a 12,000-resident community on the island city's former Naval Air Station until the deal fell through.

The Alameda City Council voted unanimously in closed session Tuesday to pay the Orange County company about $3.1 million over the next 18 months as well as to return the $1 million SunCal had initially deposited with the city more than five years ago.

City Attorney Janet Kern said the settlement was a prudent financial decision that costs the city far less than had the case gone to trial.