The 2011 shooting of Flint Farmer by officer Gildardo Sierra was caught on video.
The city council finance committee will consider the settlement Monday.
The committee also will consider a $145,000 payment to a man who says he was handcuffed and held captive by police when he was 13.
Only a month ago, the council decided to a combined $33 million to resolve two police misconduct cases, one of which involved a mentally ill woman who was dropped off in a bad neighborhood by police, and was abducted and raped before she fell from a seventh floor window.
In the Farmer case, the police department ruled his shooting to be justified, but the officer later admitted he had consumed "multiple" beers before going on duty that night, the Chicago Tribune reported Saturday.
The city waited five hours to give Sierra a breath test, says a lawsuit filed for Farmer's estate.