COSTA MESA

Neighbors of Harbor Center, a grass-roots group that has fought the renovation of the city’s oldest shopping center, has reached a settlement in principle in its lawsuit against the city and developer.

The City Council approved plans by ICI Development Co. last fall to raze the Harbor Center and replace it with a 320,000-square-foot center anchored by the Home Depot and Lucky supermarket. Neighbors of Harbor Center has agreed to drop its suit challenging that decision and seeking an environmental impact report in exchange for some modifications by ICI. The agreement needs to be put in writing for council approval, said Tom Nixon, counsel for Costa Mesa.