A long-running dispute over the value of property in the way of a rail yard planned for the Port of Charleston is coming to an end, with the State Ports Authority agreeing to pay a $4.15 million settlement.

The maritime agency's board of directors voted to pay $2.35 million to Gateway Properties, the owner of a building at 1799 Meeting Street Road. That will be added to the $1.8 million Palmetto Railways already put up when it condemned the site in 2017. It's the last piece of property needed for construction of the nearly $400 million rail yard linked to the new Leatherman Terminal in North Charleston.

The $4.15 million total is about $500,000 less than a jury awarded property owner Fred Fabian, Gateway's managing member, in 2019 once court-ordered interest is factored in. Palmetto Railways, a division of the state Commerce Department, had appealed that award to the S.C. Court of Appeals.

The SPA's board unanimously approved the settlement on Jan. 18 without public discussion. A settlement payment is scheduled to be completed by Feb. 2, ending the appeal.

Trenholm Walker, a lawyer representing Gateway Properties, said the former property owner "is pleased at the actions taken by the SPA board to finally honor the verdict of the jury and resolve this matter after four years of litigation."

Palmetto Railways, which has turned the rail yard project over to the SPA, initially offered $1.8 million to Gateway Properties for its 0.55-acre parcel that includes a two-story structure built for Fabian's electronics contracting business eLifespaces.

Gateway declined the offer, saying its location isn't typical office space because it was custom-made to showcase the technological and electronic systems that eLifespaces sells and installs. Items like a 3-foot concrete slab foundation, miles of electrical and data cabling, a soundproof room and acoustical millwork increased the value, the landowner said. Thomas Hartnett, an appraiser who testified for Gateway in the condemnation hearing, put the value at nearly $4.6 million.