Kiawah Partners, the owner of Captain Sams Spit, has an offered to sell the disputed property to the state of South Carolina for $40 million.

The offer, which was made in December, includes the transfer of Beachwalker Park, which is leased to Charleston County. Kiawah Partners would drop a lawsuit filed against the S.C. Department of Health and Environmental Control and the state in 2009, which alleges that the repeated denial of permits to build homes and infrastructure on the spit has resulted in financial loss for the developer.

If the state refuses the offer, the lawsuit would proceed, extending a legal battle that’s been going on for more than 15 years over development rights on the land.