SOLANA BEACH — City Council sent the developer of Cedros Crossing back to the drawing board for the fifth time.

The $72 million mixed-use development, slated for North Cedros Avenue between Lomas Santa Fe Drive and Cliff Street, was presented by staff for the first time to the council and public for comments during a special five-hour session April 28.

Council needed to emerge with an approved project to be placed on the June meeting agenda of the California Transportation Commission, or CTC, to receive a crucial $6 million state grant. Annette Gilbertson, associate deputy director with CTC, said it’s not too late. “They can still make the agenda,” Gilbertson said.

According to the staff report, developer Shea Properties met city development standards and codes in all major areas except the percentage and density of residential units and neighborhood compatibility.

Residential units cannot exceed 40 percent of a project area and must be limited to 20 dwelling units per acre. But because Cedros Crossing includes affordable housing, it is eligible for a density bonus that would allow 25 units. Staff estimates put the residential component at 72 percent of the project, with 52 units per acre.

Greg Shannon, vice president of development for Shea Properties, said the discrepancy occurred because of the way the laws were interpreted. He designed the residential component based on the entire 5.66 acres of the project, while the staff report numbers were based on only the residential portion, or 2.5 acres.

“The council doesn’t even know what the law is,” said Catherine Rodman, who represents nonprofit legal services corporation Affordable Housing Advocates, which earlier this month threatened legal action. “Their housing element binds them to develop 131 units there or elsewhere in the city,” said Rodman, who plans to file a lawsuit if a project is not approved by June 8.

Acknowledging the site is a design challenge, the staff report notes the commercial buildings are compatible with some existing development in the area, but not all.

The council was unanimous in its desire to see a project developed on the site. Council members Lesa Heebner and Mike Nichols, who make up the ad hoc committee for Cedros Crossing, said they will continue working with Shea Properties to develop an acceptable design. “I am that insane that I will do that,” Heebner said.

“Maybe I’m crazy, too, but I’m happy to continue this dialog,” Nichols said.

Shannon said a successful redesign “all comes down to numbers” — either in units or square footage — for the residential portion of the project. Mayor Joe Kellejian agreed. “We need to give him some parameters,” he said. His colleagues said it wasn’t that easy.

“There is no one set of numbers,” City Manager David Ott said. “It depends on how you lay it out on the site.”

“We can’t design the project for him,” Councilman Thomas Campbell said.

“We’re disappointed with the outcome, and we’re trying to evaluate what can be done,” said Shannon, whose company has invested seven years and $3 million in the project.