Excerpt:

Work on roads, a bridge and other public works at the stalled 248-acre Marblehead Coastal development could resume through a lawsuit settlement that is up for City Council ratification Tuesday night.

San Clemente filed suit in 2008 after progress sputtered to a halt on the site for 308 homes and a 640,000-square-foot commercial center along southbound I-5 at the Avenida Vista Hermosa exit.

The city is calling in $55 million worth of bonds that SunCal Marblehead LLC was required to post to guarantee completion of needed infrastructures. The SunCal partnership and its financial backer, Lehman Bros., are in Chapter 11 bankruptcy.