TALLAHASSEE - The Sierra Club settled its administrative law challenge against a developer Thursday to clear the way for the state to buy 74,000 acres of Babcock Ranch in southwest Florida for $310-million.

The environmental group dropped its demand for lower density limits for 17,000 acres of the ranch that would remain in private hands. That property is to be developed as a new city including businesses, offices, schools and about 19,000 residential units.

In exchange, developer Syd Kitson agreed to alter parts of the development to reduce sprawl and increase the size of a wildlife corridor, improve wastewater treatment and require energy-efficient development.

Several other environmental groups had opposed the Sierra Club challenge, fearing it might kill the conservation lands purchase.