SAN DIEGO -- The City Council Tuesday approved a 12-story, mixed-use residential and commercial development in Hillcrest, despite opponents' claims that it was too large and would detract from the character of the community.

The panel voted 7-1 in favor of the project, which will be built along University Avenue, between Third and Fourth avenues.

Councilwoman Donna Frye, who cast the lone dissenting vote, said the project was not compatible with the neighborhood. She told her colleagues that it would change the community's character "not just a little bit, but a lot and probably forever."

Councilwoman Toni Atkins, who represents Hillcrest, acknowledged that the development will lead to "some" significant changes to the neighborhood, but said it would also contribute to revitalization and add parking.

"This is a big transition for this community," she said.

The so-called 301 University project will include 96 condominiums, 10,304 square feet of commercial space, 201 designated parking spaces and 121 public spots, according to a report to the city's Planning Commission.

Carol Schultz, with the Uptown Partnership Inc., told the council the added parking spaces were a "significant community benefit."

But the owner of a nearby business described the building as a "monster."

"It is hard to stretch your imagination to see that being compatible in height and in scale with what is already there," Tom Mullaney said. "This is the wrong project for the site. It is just too big."

Councilman Jim Madaffer countered that the development is planned for the "commercial heart of Hillcrest" and appropriate for the community plan.

"This project is exactly what you would probably want on an urban corridor like University Avenue," Madaffer said.

In a 20-page memo, City Attorney Michael Aguirre opposed the project, stating that the accompanying environmental review was "not adequate," and called on the City Council to deny the permit.