The City’s prior approval of a 224-unit apartment complex was dealt a legal setback Thursday after a Los Angeles Superior Court judge ruled the development didn’t conform with the State density bonus law.

In the case Kennedy Commission v. City of Costa Mesa, the Court reversed the City Council resolutions and ordinances that approved the apartment project, which would allow Miracle Mile Properties to redevelop the now-closed Costa Mesa Motor Inn on Harbor Boulevard.

The Court fully rejected the Kennedy Commission’s claim that the City engaged in housing discrimination.

However, the allegation by the Kennedy Commission that the City was responsible for relocation payments to previous occupants of the motel was transferred by the Court to another judge for resolution.

The City and its legal counsel are evaluating the options to resolve this matter.