HARPSWELL – Selectmen have agreed to settle two lawsuits between the town and a Massachusetts-based development firm that had tried to build a housing subdivision and campground at Merrucoonegan Farm, a lawyer for the town said.

Selectmen voted 3-0 to put an end to lawsuits in federal and state courts with Leo Blair and Envision Realty Corp., Michael Saucier said.

In July 2001, Blair sued town officials for $3 million in U.S. District Court in Portland after the planning board rejected his development plans for the 24-acre property on Route 123.

Blair claimed the town discriminated against him because he is from out of state.

Blair later proposed a campground on the property that would be large enough to accommodate 104 recreational vehicles. He eventually withdrew that proposal.

The town soon filed its own suit in Cumberland County Superior Court alleging that Blair violated the town’s ordinances and state law by subdividing his property three times in five years.

Blair decided to sell the property to the Harpswell Heritage Land Trust for $765,000. He said at the time that it was clear that the town would not allow him to develop the land.

The land trust plans to close the sale Sept. 1 and continues to raise money for the effort, according to Spike Haible, director of the land trust.