According to the lawsuit, the project needs an assessment under state law because it eliminates a traffic lane and would cause "irreparable harm" to the community by permanently removing parking and creating a dangerous traffic situation.

City spokeswoman Carol Costa said the city had not been served with the suit so it would be inappropriate to comment.

She said the project was exempt from the assessment because it is a beautification project.

The lawsuit is the latest effort to stop the project. Kessler has coordinated a street protest and set up a July 30 meeting with Ben Lee, city managing director, to discuss residents' concerns in a last-ditch effort to avert the work.

His group then appealed to the state Office of Environmental Quality Control, which reviews construction projects for environmental concerns. Last week that office asked the city to stop work on the project until the Environmental Council could take up the issue this week.

In an Aug. 3 letter to Tim Steinberger, director of the city Department of Design and Construction, Genevieve Salmonson, director of the state Office of Environmental Quality Control, asked that work be stopped until the council could discuss the project on Thursday.

The city gave itself an exemption from performing an assessment for the work that is typical of minor projects, Salmonson's office said.

Meanwhile, the work continues. The project begun Aug. 2 involves constructing 20 bulb-outs with landscaping and a bicycle lane between Kapahulu Avenue and McCully Street. The project is expected to be completed by December.

"The city has not responded either to our protest nor to written requests from our group and from the state," Kessler said yesterday. "The work is continuing today, so we felt that we had to take further action."

No hearing date has been set for the lawsuit.