The fight over a swanky new Encinitas hotel just stepped up a notch. A new lawsuit accuses the developers and the City of Encinitas of turning a blind eye to forthcoming parking issues and noise complaints.

When the opportunity popped up to buy a motel known for hosting drug dealers and prostitutes more than vacationers, managing partner Eric Gilmer said he jumped at the chance to build something different and exciting: The Ray.

Resident of Encinitas for over 20 years, Gilmer has big renovation plans for the run-down Portofino Beach Inn just off of North Coast Highway.

"It's a bummer, we've been working on this project in good faith to try and provide something we feel is missing in our community and it's unfortunate to have to continue to wait. We thought we'd get it done in short order and it's now dragged out over 4 years which is impactful," Gilmer said.

Gilmer and his local partners plan to renovate the dilapidated building into a boutique hotel destination with a rooftop pool, bar and restaurant area.

The Ray

The potential noise from that rooftop area is now a main argument in a lawsuit filed by Encinitas community nonprofit Coastal Defender NC, led by Dr. Richard McPherson, against the City of Encinitas.

Attorney Felix M. Tinkov represents the group who says their “acoustic expert’s noise analysis” determined nearby residents would be inundated with late-night noise, a violation of municipal code standards.

The lawsuit says the city, which claimed exemptions to the California Environmental Quality Act (CEQA), is turning a blind eye to parking issues.

Opponents point to a lack of onsite hotel parking which will lead to more street parking, which they claim is already an issue for residents and visitors.

Gilmer believes there will be ample parking based on research showing an uptick in rideshare usage among vacationers and guests.

As for noise, Gilmer said the hotel will have a mellow vibe, pointing out the fact his own guests would be the first to complain as they'll be the closest neighbors to the outdoor bar. The rooftop bar’s noise will pale in comparison to the traffic noise from the nearby highway, Gilmer added.

The attorney who filed the suit said the City of Encinitas needs to take a closer look at the environmental impacts under the CEQA. It also said the building will exceed a 30-foot height limit in violation of the City’s Municipal Code.

The Ray

The city has clear ordinances for both sound levels and parking regulations which Gilmer said they took into account with the structural design of the rooftop bar.

“We’ve followed all current code with developing our plan and the city has concurred both at planning and staff and council level that we have met all guidelines,” Gilmer added.

Gilmer told NBC 7 he has felt overwhelming support from the community and there were just a select few neighbors dragging things out.

Barring more unforseen hurdles like this lawsuit, construction is expected to begin in about six months.

“Our philosophy is we’re gonna stay the course. We care about the community greatly and we think we’ll get to the finish line here hopefully soon,” Gilmer added.

Coastal Defender NC is represented by attorney Felix M. Tinkov.