Construction of a $450 million downtown project that would include a Ritz Carlton Hotel could begin by mid-2019 following settlement of a lawsuit.

“We reached an understanding with the petitioners which challenged the entitlements of the project, so that lawsuit is then dismissed,” said Jason Wood, project principal for Cisterra Development.

Details of the settlement were not disclosed.

Cisterra is the developer of the project at Seventh Avenue and Market Street.

The project would include a 160-room Ritz Carlton hotel, 58 Ritz Carlton branded condominium units, 156,000 square feet of office space, 115 market rate apartments, 32 affordable housing units, ground floor restaurant and retail that would include a grocery, 6,000 square feet of open space and renovation of a single-room-occupancy hotel on the site.

Plans for the project were approved in 2016, but the project stalled when a lawsuit was filed by downtown resident Sergio Gonzalez and San Diegans for Responsible Planning, a coalition of community and union members.

The lawsuit challenged the Cisterra project on environmental grounds.

Wood said the first step in restarting the project will be updating its financing.

Construction is expected to take three years.