A Long Island contractor and his two affiliate companies have agreed to pay more than $121,000 to settle allegations of illegal construction near protected wetlands, the state attorney general’s office announced Friday.

The settlement resolves a lawsuit the state filed in May against the contractor, Anthony Labriola, and the companies, ALAC Realty LLC and ALAC Contracting Corp.

The suit alleges that the defendants built a construction vehicle parking lot and storage facility along the Carlls River in West Babylon on a protected area, and that vegetation and trees were removed for building, “leveling a protected ‘buffer area’ adjacent to river wetlands,” according to a news release by the office of Attorney General Letitia James.

After the lawsuit was filed, the defendants removed debris, construction equipment and vehicles; installed a wall on the worksite boundary to separate it from the wetland; replanted five dozen native shrubs and trees; put in a new irrigation system; and planted seeds, the release said.

In addition, the defendants must monitor the plantings to ensure the survival of at least three-quarters of what was planted; provide reports to the state until at least 2028; allow access for monitors; and further follow the state’s directives.

The river’s freshwater wetlands are categorized with the state’s “highest level of protection for the benefits they offer New Yorkers, including the protection of water quality, the preservation of wildlife habitats, and flood control,” the release said.

In an interview, Labriola said he settled the matter even though he denies most of the allegations.

“We made a business decision. We signed something to put this behind us forever and move on,” he said.

He added: “The crime is a very small sliver of land that we parked a couple vehicles on.”

He said that trees he’s accused of clearing were downed due to Superstorm Sandy, and that he and his companies had gotten permission from the state to clear those trees on a buffer section of larger property, which he and the companies had purchased about 15 years ago. “We didn’t just go in and start whacking trees down,” he said.

The news release announcing the settlement quoted James: “Not only did Anthony Labriola build a parking lot on protected lands, but he then spent nearly a decade refusing to comply with state enforcement efforts — putting convenience and his business interests over Long Island’s vital natural resources.”

Labriola admits to parking on the site, but as for the rest of the allegations, he says, “That’s a lie.”

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