The district filed the suit in Alameda County Superior Court in 2012, after the City of Alameda rezoned the parcel to support the sale of it from the federal government to Tim Lewis Communities, for residential development.
The park district said that it wanted to acquire the property to expand the beach park.
Earlier this year, pressed by citizens, the city again rezoned the property for open space.
Last month, Tim Lewis Communities withdrew its development application with the city and withdrew its offer to purchase the property from the federal government.
“With the open-space zoning in place and the time to challenge its adoption having expired, the Park District’s lawsuit was no longer necessary to protect this property from incompatible development,” EBRPD District Counsel Carol Victor said.