The Newport Beach Banning project that has sparked much controversy in the OC was just voted down by the California Coastal Commission.

The commissioners voted last week to deny one of the biggest proposed developments in recent years.

As part of the Newport Beach Banning project, 895 homes, a hotel and stores would have been built on an oil field in Orange County, according to the LA Times. Around 329 acres would have been set aside for natural open space, including seven miles of trails open to the public.

Commissioners said the denial was not necessarily a vote against the project but in response to competing staff and developer proposals for the site.

While it is not known what will happen next, the developer, Newport Banning Ranch LLC, could possibly sue the Coastal Commission or resubmit a revised project at least six months from now that would require a minimum $250k fee.

Newport Banning Ranch LLC is a partnership that includes Aera Energy, a subsidiary of Exxon Mobil Corp and Shell, Brooks Street and Cherokee Newport Beach. [LAT]