Jim Restaino of Union County sued Cherry Hill Township in 2005. The township had denied his business application, which was fiercely opposed by residents of the township's Barclay neighborhood.
Under the settlement agreement, finalized last week, Restaino agreed to a deed restriction that bars any sexually oriented business from his property.
The $612,500 settlement will be paid by the township's insurance company.
Fearing further suits, the township has since revised zoning laws to establish two zones where sex shops may operate. Neither is near a residential area.
Information from: Courier-Post, http://www.courierpostonline.com/