TRPA is being sued over its approval of the 1200 acre project that includes a hotel, condos, homes and a retail village.
Wendy Park with the group Earthjustice says the TRPA is not protecting the air and water of Lake Tahoe.
PARK: "Unfortunately, the trend has been that things are getting worse and they're not improving and unfortunately, TRPA is proceeding business as usual and still approving these big development projects that are just going to make matters worse for the region."
Kristi Boosman with TRPA says the project would offset any increases in pollution and would have stopped 80,000 pounds of sediment from going into Lake Tahoe every year.
BOOSMAN: "The developer, J&A Ventures with the Homewood Ski Area Master Plan intended to put erosion control measures on that site in order to capture all of the storm water flowing off of it and filter it through various systems so that no sediment would flow from Homewood into Lake Tahoe."
The project is now on hold until the U.S. District Court addresses the suit.