The Santa Cruz City Council delayed vote on a $5.4 million arena project for an arena to house the Golden State Warriors' D-League affiliate, that includes a $4 million city loan.

The council will meet again in a closed session on Wednesday afternoon.

The driving concern is approving a project that could be halted by a court injunction if a lawsuit is filed and a judge agrees a more extensive environmental review should have been done.

The facility would have 2,950 seats for basketball and up to 4,000 for concerts.

Camas Steinmetz, a lawyer with Aaronson, Dickerson, Cohn & Lanzone in San Carlos, charges the city should have conducted a full environmental review based on the state law.