The city is paying out $100,000 to the estate of a man shot dead by a cop who was first feted for heroism, and then hit with departmental charges for not retreating.

Gilberto Blanco was breaking into a car in Coney Island when he was confronted by Officers Dawn Ortiz and India Archie in November 2008.

He swung a folding chair at the cops, and Ortiz fired one shot that killed the 45-year-old, unemployed construction worker.

The officers were hailed as heroes and named “Cops of the Year” by the NYPD’s Holy Name Society.

But a departmental review of the shooting determined they should have retreated, even though they were reportedly backed against a hedge.

The cops opted to face charges rather than accept a slap on the wrist.