Democrat Stephanie Rawlings-Blake says she will use the remainder of her term in office to concentrate on rebuilding parts of the city that were destroyed in April's riots.
The mayor said the settlement avoids "continuing anxiety and distraction." She said city attorneys felt going to court would ultimately prove more costly to the tax payers.
Gray suffered a fatal spine injury while in custody of police. His death sparked days of peaceful protests and a night of riots. The deal still has to be approved by the Board of Estimates.
Baltimore clothing shop Flawless Damsels is one of the more than 400 businesses damaged in last spring's riots. The shop recently reopened and was bustling, though that's not the case everywhere.
A judge in Baltimore handed prosecutors two pretrial victories on Wednesday, rejecting a motion to dismiss charges against six police officers and allowing the state's attorney to remain on the case.
Baltimore's residents "deserve better" than recent results have shown, Mayor Stephanie Rawlings-Blake says. The move comes two months after six officers were charged in the death of Freddie Gray.
Sixty years ago, Helena Hicks helped desegregate the city's lunch counters. In the wake of Freddie Gray's death, the 80-year-old has continued to advocate for Baltimore's poor, black residents.
Accusations against police of a slowdown has heightened longstanding mistrust of police. While steps are being taken to rebuild that trust, that's hard to do when police are out combating violence.