The Simi Valley City Council has given preliminary approval for the construction of 93 single-family houses on a 19.5-acre parcel immediately south of the Civic Center.
The Lusk Co., based in Irvine, has proposed the subdivision on the south side of Alamo Street, 700 feet west of Tapo Canyon Road.
An environmental impact report on the plan found that any issues can be resolved, including traffic, drainage, biological and neighborhood design problems.
But the study concluded that the developer cannot alleviate the increased air pollution that the additional residents would create.
As a result, the council on Monday approved a "statement of overriding concern," saying the benefits of the project "outweigh the unavoidable air quality impacts."