JENSEN BEACH — A three-year court battle in the war of words between the Jensen Beach Group and the developer of the controversial Pitchford’s Landing project is over, both sides said Monday.

An agreement was reached to settle the lawsuit Bill and Nancy Reily and Reily Enterprises filed in July 2006 against the Jensen Beach Group and several of its members. Also settled was the civic group’s counterclaim against the developer.

The conflict centered on Reily’s plans to redevelop the Pitchford’s by the Sea RV Park, which overlooks the Indian River Lagoon.

The Pitchford’s Landing project — 45 single-family houses, 39 condominium units and a refurbished 3,080-square-foot restaurant — is on hold until the economy improves, Reily said.

Both sides said they cannot discuss the terms for Friday’s settlement of the latest legal battle between Reily and the Jensen Beach Group. However, both sides said the clash was costly.

“The trial was set and I wasn’t able to pay my attorney so I was forced to do a settlement,” Reily said. “Had times been different, I would have never, ever settled this lawsuit.”

The Jensen Beach Group released a statement Friday that said, “The litigation has … cost all parties in the range of $1 million.

“It has been emotionally and financially draining for all of us and we welcome an end to the battle of Pitchford’s Landing but do not regret the action we took,” the Jensen Beach Group stated. “If you do not stand up for your rights, if you do not protect your community, then no one else will do it for you.”

Reily’s lawsuit had sought $5 million in damages from the Jensen Beach Group, nine members and three businesses, alleging defamation and interference with business and contractual relationships, among other things. Reily alleges the Jensen Beach Group disseminated false information about his project, court records show.

But the Jensen Beach Group and its members say they were merely exercising their constitutional right to free speech by opposing the project and accused Reily of filing “Strategic Litigation Against Public Participation.” They lodged a counterclaim against Reily asserting the truthfulness of their statements about Pitchford’s Landing and seeking legal fees and punitive damages.

Opponents of the project say it would worsen traffic congestion, eliminate affordable housing and erode Jensen Beach’s small-town character.

Supporters, however, say the new houses would bring an influx of customers to downtown businesses, clean up a blighted area and enhance redevelopments efforts.

In earlier court battles, the Jensen Beach Group successfully sued to block state permits for a seawall on the Indian River Lagoon as part of the Pitchford’s Landing project. However, the group lost an appeal of the County Commission’s decision to change the land use of the recreational vehicle park to allow the construction of single-family houses and condominiums.

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