Carlsbad has approved the conversion of a 98-room extended-stay hotel into 98 studio and one-bedroom apartments, a change seen as a relatively quick and easy way to add much-needed affordable housing.
The three-story, Studio 6 hotel is on 3.21 acres in an industrial park at the southeast corner of Avenida Encinas and Cannon Road, just west of an Interstate 5 onramp. It would be converted into 98 studio and one-bedroom apartments with exterior improvements and interior remodeling.
“It redevelops an under-utilized building and project site to provide workforce and affordable housing within an expedited time frame,” said Anna McPherson of The Atlantis Group, a San Diego agency representing the applicant Inns of America.
The hotel has 123 parking spaces, an outdoor swimming pool and a spa that all will be retained. Two pickleball courts, a dog run, and a bike and surfboard storage area will be added. Its new name will be Flats at Terramar, according to information submitted to the city.
Fifteen of the apartments will be restricted as affordable housing for tenants who qualify based on their income. Seven of those will be for very low income, five for low income and three for moderate income, a city report states.
“This project is going to enhance the neighborhood dramatically,” said Mac Stead, a Carlsbad resident with Alliance Development Services and also representing Inns of America. “It’s going to provide housing that’s really needed, low-income housing, as well as regular housing for people who live here.”
The hotel was built about 25 years ago, primarily to serve as guest accommodations for about 25 local businesses nearby on Avenida Encinas. Guest rooms include refrigerators, microwaves, stoves and dishwashers.
The building is one-third mile from the Pacific Ocean and 1.3 miles from the Poinsettia Coaster train station.
City Council members approved the project unanimously Tuesday, though some expressed concerns about the proximity of the fenced pickleball courts to Avenida Encinas. The applicant agreed to consider placing netting above the fences to prevent balls from reaching the roadway.
The hotel generates between $150,000 and $200,000 annually in transient occupancy tax (TOT) revenue that will be lost after the conversion. Mayor Keith Blackburn said at least some of that will be covered by revenue from the increased property value.
“I think it’s a great idea,” Blackburn said of the conversion.
People often complain when apartment buildings are built in or near older, single-family neighborhoods, and this project avoids that, he said.
“It’s not going to be a new building, not going to be interrupting any residential areas, and it’s really close to transportation,” Blackburn said. “I just can’t think of a darn thing negative about it, other than (the loss of) the TOT tax.”