LOS ANGELES (CBSLA.com) — The Los Angeles City Council Wednesday approved the $665 million Millennium Hollywood Project, which will feature hotel, housing, retail and office space.

The project previously came under fire for its planned location at the Capitol Records building along Vine and Yucca, which is near an active earthquake fault.

However, the council’s planning commission unanimously approved the development deal back in March.

The project will feature will feature a pair of 35-story and a 39-story towers boasting 461 residential units, 254 hotel rooms, more than a quarter-million square feet of office space, and 80,000 square feet of retail space.

Officials with the state California Geological Survey Saturday alerted City Council President Herb Wesson that it has begun a detailed study that could find the project actually falls within a fault zone.

Such a finding would trigger the restrictions of state law that make it illegal for new habitable projects to be built within 50 feet of an active fault.

The Enforcement Unit of the California Board for Professional Engineers, Land Surveyors, and Geologists confirmed the investigation in a letter addressed to Robert P. Silverstein, an environmental attorney representing more than 40 community groups opposed to the Millennium Hollywood Project.

“These are devastating developments for the project,” said Silverstein. “These are red flags that should warn Los Angeles City Councilmembers that it would be incredibly irresponsible and possibly criminally negligent for them to approve the Millennium project as it is now planned.”

Mayor Eric Garcetti’s office issued the following statement earlier this week: “Mayor Garcetti did not support this project at 55 stories and made that clear to the developer. Since then, the project has been reduced in height, more open space has been included, and other concerns have been addressed.”

The Mayor’s office pledged to “continue to monitor public, city department and other input.”