The City Council voted to approve land-use and environmental plans for the commercial project, despite a skeptical Mayor Dick Murphy, who has favored keeping the entire property under public ownership.

About 104 of the NTC's 502 acres are being turned over to Corky McMillin Co. for a mixed-use commercial project. The remainder will continue under public ownership by the navy, city and school and port districts.

The plan adopted by the council includes changes recommended by the California Coastal Commission last month. Following city approval, the plan will be reconsidered by the coastal commission.

As it stands, the project includes 350 homes, two hotels, nearly 50 acres of parkland, a public safety and training center, a public golf course and office buildings. The federal government closed the naval facility four years ago.

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