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Menlo Park residents who sued the city and a developer over a 33-home project planned for the city’s Linfield Oaks neighborhood have dropped the lawsuit.

The Linfield Oaks Homeowners Association, which brought the suit, and the Palo Alto-based developer Summer Hill Homes have reached an agreement on a slightly smaller project: 32 homes instead of 33.

The City Council voted 3-0 in closed session on April 10 to approve the new project. Councilmen John Boyle and Heyward Robinson were absent.

In the suit, filed Dec. 29, the homeowners association charged that the project, which was approved by the council on a 3-2 vote Nov. 28, violated the city’s general plan, zoning regulations and the California Environmental Quality Act.

Under the agreement, Summer Hill homes will build 32 three- and four-bedroom homes on the 4.5-acre site at 75 Willow Road, adjacent to the Sunset magazine campus. The developer will also plant more trees between the new homes and an adjacent apartment building at 200 Waverly St.

The landlord of the apartment building is Don Brawner, who led the charge against the project. Summer Hill Homes will pay Mr. Brawner about $40,000 for attorney’s fees, and up to $20,000 to replace the glass windows and sliding doors in his apartment building to limit noise for the building’s tenants during construction.

The project was approved by the previous council despite adamant opposition from residents, who said the project would overcrowd local schools and increase neighborhood traffic.

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