“The city welcomes the A.I.C.C. along with any other religious groups to Sterling Heights, and we will continue an open dialog to address areas of disagreement with respect to land use,” the city’s statement said.

It said the city had a reputation for tolerance — with two mosques; Sikh, Buddhist and Hindu temples; and Christian churches.

The city’s statement said the community center’s application for a new mosque was denied because it was incompatible with adjoining uses and offered insufficient parking and because of concerns over the size and height of the building. The city denied that “emotional feelings tied to religious beliefs either for or against the applicant” played a part.

But the Department of Justice lawsuit claimed that the planning commission’s decision was “inconsistent” with others it had made on places of worship, and that the rejection was “based on anti-Muslim bias.”

Last year, the community center, a nonprofit Muslim group in neighboring Madison Heights, had sought permission to develop 4.35 acres of land in Sterling Heights, because most of its members lived there and because its facility in Madison Heights was too small, the lawsuit said.

The proposed building would have been approximately 20,500 square feet with 130 off-street parking spaces, a dome about 58 feet high and two 66-foot-tall spires — lower than features on nearby churches.

Jaafar Chehab, a community center board member and trustee of the land, worked with city planners to address some of the concerns, including agreeing not to oppose liquor license applications in nearby areas, and agreeing not to have an external call to prayer, the lawsuit said.