The hotel is now east of Pacific Street, despite Manchester's earlier plan to build the project right at beach level. It now encompasses three blocks instead of six, has 400 rooms instead of 500 and totals558,000 sf instead of 925,000. The revised plan also removes blockage to ocean views from Mission Avenue.

Manchester's architect and planners contended at last week's city council meeting that the project remains a "first-class resort" and will include shops and a ballroom.

Some questions still remain about whether Manchester can get financing for the $120-million project. Supporters say the resort will help to further Oceanside's position as a tourism destination. The revised project, which Manchester hopes will break ground in 2003, is likely to pass muster with the state Coastal Commission, which objected to the original size that was proposed.