SAN DIEGO -- Opponents of a plan to redevelop downtown San Diego's Navy Broadway Complex Tuesday called for a grand jury to investigate the city redevelopment agency's handling of the project.

In a story the 10News I-Team first broke, the Navy Broadway Complex Coalition accused the Centre City Development Corp. of advocating on behalf of the developer, Douglas Manchester, rather than taking public safety into consideration.

Fredric Maas, chairman of the CCDC board, called the coalition's allegations completely unfounded and "silly."

"The only thing they didn't accuse us of is the Lindbergh kidnapping and Abu Ghraib," Maas said. "To somehow give credibility to these wild notions of conspiracy is silly."

The coalition has filed a lawsuit against the city and CCDC over its approval of the $1.2 billion project, in an effort to force an expanded environmental review.

"CCDC seems to be working with Manchester to avoid full, current environmental impact evaluation, especially with respect to seismic issues," a statement from the coalition read.

The group alleged that Nancy Graham, CCDC's president, aided the developer in scuttling a proposed settlement offer, by inviting a representative with Manchester to a negotiation meeting.

Maas said CCDC is working to further settlement negotiations with the coalition and argued that as the developer Manchester is obliged to be involved in settlement talks.

"I can't conceive of a settlement that may have taken place that would not have impacted them," Maas said.

The City Council was supposed to hear an appeal of the approval of the Navy Broadway Complex project during its meeting Tuesday, but that hearing was postponed until Nov. 5 amid a noticing problem.

Cory Briggs, an attorney for the coalition, expressed his "deep consternation" to the council that the appeal was pulled off the docket, and said the group withdraws its settlement offer.

Manchester signed a 99-year lease with the Navy to redevelop the 14-acre site, which is located between Pacific Highway and Harbor Drive south of Broadway. In addition to 2.9 million square feet of office, hotel and retail space, the plan calls for the construction of a building to serve as the future headquarters of Navy Region Southwest.