In March, property appraisals for a condo and an apartment were filed in San Jose.
In June, the California Coastal Commission issued a decision saying it would not recommend that the state make any major repairs to the San Diego property, the Los Angeles Times reported.
The agency ruled the San Francisco Bay Area property is too dilapidated and that repairs were needed to maintain the property’s value, the paper reported.
But now, the two agencies have come to an agreement that will save the condo and the apartment for the time being.
In a statement to the paper, the property appraisal firms representing the condo developer said the new deal with the Coastal Commission would save the property and the apartments for the long haul.
“Our client, the condo owners, and the city are in agreement that the condo is safe for future use,” the statement said.
“We are hopeful that this agreement will result in a long-term deal for the future of the property that will provide affordable housing for all of the residents in the condo complex.”
The Coastal Commission did not immediately respond to a request for comment.
The condo was originally listed for $3.2 million in March.
The developers told the Associated Press they had plans to move out of the condo in the future, but the city says it cannot approve the condo without further planning, and so the condo has to remain.
In April, the Coastal Board of Supervisors approved a $2.4 million development plan for the condos.
The project includes a community garden and a rooftop restaurant.