Hill, 47, was fatally shot by officer Adam Coy late last year as he emerged from a garage holding up a mobile phone in Ohio.
The US city of Columbus, Ohio, has reached a $10 million settlement with the family of an unarmed Black man who was killed by a police officer last year.
Andre Hill, 47, was shot dead on December 22 by Columbus police officer Adam Coy.
Coy, who is white, was subsequently dismissed from the police force and faces murder charges.
Columbus City Attorney Zach Klein said the $10 million settlement is the largest in the history of the midwestern city.
"We understand that because of this former officer's actions, the Hill family will never be whole," Klein said in a statement.
"No amount of money will ever bring Andre Hill back to his family, but we believe this is an important and necessary step in the right direction."
'A very big day'
Attorneys for the Hill family thanked the city for "doing the right thing" by reaching the settlement and agreeing to name a community center gymnasium after Hill.
"Now all those involved can begin to heal," they said in a statement.
Hill's daughter, Carissa Hill, held her 3-year-old daughter as she called it a “a very big day for me and my family.”
“We’re just sad we can’t share that with our dad being here,” she said. As she once did, her daughter will visit the gym her father loved.
“The difference is, when I went, I was going with my dad,” Hill said. “When she goes to the gym, it will just be for my dad, in my dad’s name.”
Andre Hill's older sister, Shawna Barnett, said that, "the money is a good thing; but having Andre here would be better,” Barnett said.
Hill was in the garage of a house when Coy and another officer arrived on the scene in response to a minor complaint.
Seconds before Coy opened fire, bodycam footage shows Hill walking towards the policeman holding a cell phone in his left hand, while his other hand cannot be seen.
Hill's shooting came seven months after the death of George Floyd and sparked a fresh wave of protests against racial injustice and police brutality.
Minneapolis police officer Derek Chauvin was convicted of murder last month for Floyd's death and is to be sentenced in June.
The city of Minneapolis reached a $27 million settlement with Floyd's family ahead of Chauvin's trial.