Under the settlement, the University will set up a charitable trust of $2.5 million using non-state funds, to be held independently. The proceeds will be used for expenses related to the care and preservation of the monument, including a possible building to house the monument.
The decision comes after SCV took legal action against the UNC System and Board of Governors. A judge entered a consent judgment Wednesday morning for a settlement involving the UNC System, the BOG and the SCV.
The monument was toppled by protesters in August 2018, and the BOG delayed a decision on its future before postponing it indefinitely.
The UNC System said in the announcement that the settlement "prioritizes the safety and security of the University community," allows UNC to focus on its core mission of education and "provides the SCV with the resources to preserve the historic monument and be fully compliant with the law."
Former Chancellor Carol Folt and the Board of Trustees proposed a plan last year to build a freestanding building holding the monument, which the University later rejected.
“The safety and security concerns expressed by students, faculty and staff are genuine, and we believe this consent judgment not only addresses those concerns but does what is best for the university, and the university community in full compliance with North Carolina law,” BOG member Jim Holmes said in a statement.