The City Council voted in May to approve the Renaissance Terrace. The project is located on the south side of the river, west of Coast Highway and east of Pacific Street. City officials say the project would add $320,000 yearly in taxes to the city.

Bill Ponder, a commission analyst, said the zone is within the sphere of influence of the coastal agency. Ponder says the council erred in not considering the property within the zone.

Opponents of the project have challenged the approval of an environmental-impact report prepared for the project. City officials say the property to be built on is on a small portion of the total seven-acre parcel fall under the commission's jurisdiction.Neighbors say the four-story project will block views by neighbors in an adjacent mobile-home park.