The Edgewater Hotel’s developers took a major step toward beginning the project when the Wisconsin Court of Appeals backed the Madison City Council’s decision to move the development forward Thursday.

The Court of Appeals reiterated the council’s decision to allow the Edgewater to build on a lakefront site in the historic Mansion Hill neighborhood.

The ruling comes after a long and controversial battle, Ald. Bridget Maniaci, District 2, said. The project has been under discussion within city politics for 18 months. In that time, the hotel was been reviewed by over a dozen city committees.

The project was originally approved by the City Council.

After the decision, a group of neighbors led by property owner Fred Mohs filed a lawsuit against the city to block the development.

Ald. Lisa Subeck, District 1, said that after Mohs’ initial lawsuit was rejected, he took the case to the Wisconsin Court of Appeals.

Mohs’ only remaining option, Maniaci said, is to appeal the case to the Supreme Court. He has 30 days to make a decision. Maniaci said it is “highly unlikely” that the Supreme Court would agree to take the case if he files an appeal.

Maniaci said she is in full support of the council and Court of Appeals’ rulings.

“I’ve believed all along that the council absolutely acted properly and thoroughly in its decision making process,” she said. “I’m very supportive of today’s ruling. The council acted in the interests of the public. ”

A controversy surrounding the decision has been the proposed use of taxpayer funds in paying for the development.

Ald. Mike Verveer, District 4, said the City Council approved $16 million dollars of city financing for the project in May 2010. He added that the $16 million figure has been disputed since its initial approval.

Although the amount was approved in 2010, legal proceedings will keep the project from beginning before the end of 2011. Consequently, said Verveer, the amount has to be voted on once again.

“Because the money was not expended by the end of this year, the $16 million or a lesser amount has to be reauthorized for 2012,” he said. “This is because anything that is not spent in the approved year has to be reauthorized.”

One of the leading opponents to the city’s enormous financial support of the project is Mayor Paul Soglin, who, Verveer said, proposed reducing the city’s financing from $16 million to $3.3 million.

The reason for that proposed reduction, said Verveer, is that $3.3 million is the typical amount of city financing that is supported under existing policy. The $16 million figure was made possible by the council overriding preexisting policies.

Soglin said the decision has not changed his opinion of the situation.

“The ruling has no bearing on the [financial] aspect of the Edgewater situation,” he said.

Verveer added that he is also opposed to the project and will not back the development in future council meetings.

“I voted against it and will continue to do so,” he said. “It’s a gross interpretation of our city policy to allow as much money for one project as the previous council did in May 2010.”

Finances for the project will be part of the capital budget discussions on Nov. 15.