WAYLAND - The Board of Selectmen and the original developer of the Town Center project have reached an agreement related to the transfer of land to the town.

Developer Twenty Wayland LLC will give to the town about 24 acres of largely undeveloped land at the mixed-use development near the intersection of Rte. 27 and Rte. 20. The town will use about half of the land for conservation and the remainder for general municipal use such as a community center, according to selectmen.

The town will forego $620,000 in gift money Twenty Wayland was to pay to the town but did not. The gift funds, which would have totaled about $3 million, were tied to completion of housing, some of which was never built. They were part of an agreement made about a decade ago, said Selectman Cherry Karlson.

"This was a significant area of contention between the parties and, with advice of legal counsel on the cost to the town of protracted litigation, the board decided it was in the town’s best interests to reach agreement and forego the final gift payment," the board said in a statement.

Both sides acknowledged it is in their best interest to reach a compromise, according to the statement.

The settlement agreement also calls for the town to pay back to Twenty Wayland up to $75,750 of gift money. The town has used gift money for a variety of tasks including work on the rail trail, traffic and public safety improvements and affordable housing as well as to offset town expenses as a result of the development.

Twenty Wayland has also paid other money to the town, Karlson said.

The agreement lays out a path for completing the land transaction by the end of June and requires Twenty Wayland to seek Conservation Commission and state Department of Environmental Protection approval that the development meets their requirements. The town still needs to conduct a title and environmental review.

The land the town will get has an assessed value of more than $600,000 and an estimated market value of about $2.5 million.

"While all negotiations result in compromises, the Board of Selectmen is pleased with the outcome and is confident that it will serve the town for many generations," the board said in its statement.

A representative for Twenty Wayland could not be reached for comment Wednesday.

Brian Benson can be reached at 508-626-3964 or bbenson@wickedlocal.com. Follow him on Twitter @bbensonmwdn.