The project at 11 and 15 Marina Blvd., proposed by developer Align Real Estate, would include 848 housing units and a modern grocery store on the ground floor. The city approved the plans on Nov. 6 using a truncated environmental review process under Assembly Bill 2011, a state law that streamlines approvals for converting commercial property into housing with affordable units.

But in September, the YesAND Foundation, Neighborhoods United SF, and four Marina residents sued the city, Pacific Gas and Electric Company, and Align, alleging that officials improperly fast-tracked the project. The plaintiffs argue there is documentation of toxic waste in the ground at the bayfront site and want the parties to investigate and remediate the contamination.

Stuart G. Gross of Gross Klein PC, one of the firms representing the plaintiffs, said a trial could be more than two years away. "The lawsuit could delay construction," he said. "I do not expect that construction will begin while the case is pending; and we are confident that the court will reverse the city's approval of [the] project, which will require that the developer restart or abandon the approval process."

Align Principal David Balducci praised the city's approval. "We appreciate the diligent work of city staff in moving this important project forward," he said. "This approval brings us one step closer to welcoming new families to a neighborhood that has seen far too little housing development, while delivering a modern grocery store for the entire community." The developer said it has no timeline for breaking ground.

The pushback reflects deep divisions in the affluent Marina District. A survey by Save SF Marina Coast, a group formed to protect the neighborhood's "iconic northern waterfront" and public coastal views, found that of 331 respondents—279 of them residents of the 94123 ZIP code—95% oppose building up to 250 feet tall. About a quarter said they would support housing on the site up to 65 feet. A separate survey of 143 people found 94% demand rigorous environmental review. The organization did not provide details on its survey methodology before publication.

District 2 Supervisor Stephen Sherrill, who represents the Marina, said he does not expect clarity until February 2027, when U.S. District Court Judge Araceli Martínez-Olguín is expected to rule on a motion by Align's attorneys to dismiss the case. Sherrill has previously said the "eleventh-hour" plan took advantage of old zoning designations. "I speak for everyone in the neighborhood when I say we want clarity on the future of the grocery store," he said.

The project is part of Align's broader strategy of building housing above ground-floor grocery stores across the Bay Area, first announced in 2025. The outcome of the lawsuit could set a precedent for how aggressively the city uses state streamlining laws to approve dense housing in wealthy neighborhoods—and whether environmental contamination concerns can derail those approvals.