SAND CITY — What developer Ed Ghandour sees as the most iconic project ever envisioned for the Monterey Peninsula, the Monterey Bay Shores eco-resort in Sand City, has hit another show-stopping snag in its almost three-decade quest to become a reality.

Ghandour’s company, Security National Guaranty Inc., entered into a settlement agreement with lender Evariste Group LLC and formed SNG Evariste LLC, a partnership that holds title to the land.

“I can’t say a lot because I’m not at liberty to, but a legal situation has developed,” said Ghandour. “(The agreement) has been terminated this last summer.”

Since the legal dispute, construction has been delayed on the project.

“The only permit issued was for preliminary grading, and that work has stopped,” said Linda Scholink, Sand City’s acting city manager. “The preliminary grading stopped some time ago … and has not been completed. I am not aware of when it will recommence.”

Ghandour said he is disappointed that nothing is currently happening at the site, no grading or pilings or excavations of any type.

In early 2018, the California Coastal Commission granted approval to start grading the $800 million project site and sealing Ghandour’s vested right to the property once equipment broke ground in February of that year. The commission had granted a coastal development permit in 2015 after a lengthy process to obtain the approval.

Sitting on 39.2 acres of which only 25% will be developed, the resort is slated to have 184 hotel rooms, 92 hotel condominium units, 92 residential condominiums, a full-service wellness spa, two restaurants and conference meeting space.

The project site resides on what was once one of the largest sand mines in the United States and will be designed using the latest smart-building technologies including alternative energy systems, a graywater system, daylighting, green roofs and living walls that together reduce carbon emissions by 50% and cut utility costs.

Security National Guaranty is seeking to move an actual or apparent outstanding claim on the title to real property for the Monterey Bay Shores Resort. It is now in litigation and the developer said he could not get into the details of the legal action.

“I need to resolve this real property dispute that has clouded this project. … I’m hopeful for a resolution in the next six months given the merits of the case,” said Ghandour. “We did have a settlement that did not work out.”

The settlement was terminated by Security National Guaranty, which Ghandour said was breached by Evariste, forcing the two entities back into litigation.

“The main issue is we’re trying to clean title to move forward,” said Ghandour.

Scholink said Sand City has no specific timelines it expects the project to adhere to “though the city would like to see construction commence as soon as possible.”

Ghandour said after more than 25 years he is not resting.

“It’s a dream to see that vision realized … the most-iconic project on the Monterey Peninsula,” he said.