The Del Mar Fairground Board of Directors briefly discussed Dec. 16 the ongoing negotiations with the city of Del Mar for an affordable housing project now that the city has received a warning from the state Department of Justice about compliance with state housing law in relation to a separate proposed housing project.
The city is counting on 61 units of affordable housing as the centerpiece of a state mandate to accommodate 113 units of affordable housing within the state’s sixth cycle Regional Housing Needs Allocation process that runs from 2021 to 2029. State regulators signed off on that plan, even though the board of directors that runs the fairgrounds is undecided on whether they ultimately want to allow housing on the property.
The two sides signed an Exclusive Negotiating Rights Agreement in April 2024 to map out the steps to construction, but also gives the fair board sole discretion to nix the project at any point.
Following the DOJ letter, sent to Del Mar on behalf of state Attorney General Rob Bonta, fair board member Mark Arabo said “blind trust is not governance, especially when the attorney general is telling us that the other party is already out of compliance.”
The letter is about Seaside Ridge, a 259-unit project proposed for the city’s north bluff. City planners rejected the application multiple times as “incomplete,” in part because the applicant has not initiated the process for the necessary zoning changes. But the DOJ is warning the city that its determination may violate state housing law including the Builder’s Remedy, which allows projects to supersede local zoning when the city does not have a state-certified housing element that details where new affordable housing will go, which Del Mar did not at the time the preliminary application was submitted in October 2022.
Property owner and applicant of Seaside Ridge, Carol Lazier, has renewed a legal effort to overturn the city’s decision.
“What matters is the state of California is now asserting that Del Mar is not meeting its legal housing obligation and is exposing itself to potential enforcement actions,” Arabo said. “I raise this not as a policy argument, but as a fiduciary one. When a jurisdiction is under active scrutiny by the attorney general for compliance failures, it is not prudent governance for this board to assume alignment, transparency or risk-free execution, especially when we are asked to grant broad discretion, long-term financial commitments or automatic deference under agreements like the ENRA.”
Del Mar City Manager Ashley Jones said via email that the city is “currently evaluating the DOJ’s comments and will continue to adhere to the procedures set forth in State housing law regarding our review of the Seaside Ridge house development application.”