The city of Costa Mesa announced Tuesday it has reached an agreement to settle lawsuits over development of the Costa Mesa Motor Inn site that will allow for construction of an apartment project with up to 200 units, including nine reserved for very low-income tenants.

The settlement agreement effectively ends three lawsuits, two filed in 2014 challenging a city ordinance that regulates long-term stays at motels, and one objecting to the City Council’s 2015 land use approvals for the owner-applicant to develop a 224-unit project on the Motor Inn site, Costa Mesa Mayor Sandy Genis said.

“I am pleased we can put this behind us, get rid of a closed, dilapidated motel that has become an eyesore and attractive nuisance along Harbor Boulevard, and importantly reach a beneficial settlement for the litigants and the community,” Genis said.

“I’m glad a mutual settlement was achieved in a way that makes available some financial assistance to former Motor Inn residents and adds more affordable housing in our city.”

Under this settlement agreement, Miracle Mile Properties, the owner of the land and owner/operator of the closed Motor Inn at 2277 Harbor Blvd., agreed to reduce the number of apartments to 200.

The settlement included payment of $1,362,500 by the city and for $600,000 to be deposited into a Motor Inn Fund, including $300,000 from the city, to be set aside for financial assistance to former long-term occupants of the Motor Inn.

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