There were fears expressed that East Coastline might consider a transfer of its property rights on the Alaska Parcel in a bid to create an even larger development.

"By changing the zoning category…the potential for transfer of development rights would create a development much greater than what is allowed in the underlying regulations for the existing land-use designation," says City Manager Jorge M. Gonzalez in a memo distributed to city commissioners.

The commission's decision may be a prelude to litigation, considering the actions of Kramer and his affiliates in the past.

Although preferring not to speculate whether he anticipates litigation in response to the commission's decision, Deputy City Attorney Robert Dixon tells GlobeSt.com the city has been embroiled in a case with Kramer and his affiliates for more than three years. The plaintiffs are challenging sweeping ordinances the commission adopted that restrict floor area ratios.

In its claim, Dixon says, the Kramer affiliates argue the city committed acts of bad faith by adopting certain land-use charter amendments. A local trial court judge has since ruled in favor of the city on that issue, however.

In addition, Dixon says, the Kramer affiliates filed an action for claims under the Bert J. Harris Jr. Act, the state legislation designed to protect property owners in cases where government regulations unfairly devalue private property.

That remaining part of the current litigation, which includes claims made by the Kramer affiliates on behalf of the Alaska Parcel, is awaiting further court hearings.