Baldwin & Sons under scrutiny as Encinitas housing battle looms

ENCINITAS — As city officials prepare to challenge a controversial housing project before the California Coastal Commission, residents say the developer’s history of legal disputes and political contributions has cast a cloud of distrust over local governance.

The Quail Meadows Apartment project, a 448-unit residential complex proposed by Baldwin & Sons, has sparked strong opposition from locals who argue the development will overburden city infrastructure and negatively impact sensitive wetlands.

The Encinitas Planning Commission approved the project in October, and the City Council upheld that decision earlier this month after denying two local groups’ appeals. But critics say the developer’s track record of litigation, regulatory fines and financial ties to city officials warrants further scrutiny.

A contentious approval process

Encinitas Citizens for Responsible Development (ECRD), a local grassroots organization opposing the project, has confirmed it intends to appeal the decision to the Coastal Commission.

However, Steve Gerken, a founding member of ECRD, said the group was sorely pressed for funds to continue the appeals process without assistance from the city or other organizations. 

“We got thrown under the bus for the cost of pursuing this case — it’s not cheap and we expected the city to back us up,” said Gerken. “ECRD needs community financial support to continue this case.”

The Encinitas City Council voted 3-1 on Feb. 12 to deny two appeals, effectively advancing the project despite concerns raised by residents and council members over its potential impact on traffic congestion, drainage infrastructure and wetlands in the area.

City leaders emphasized that their vote was made “under pressure and duress” from state housing mandates and litigation threats rather than in support of the development itself.

Tensions ran high during the meeting. Councilmember Luke Shaffer came under fire after suggesting that residents “pick up a rifle” to protect the site from development. Many condemned Shaffer’s remarks, while supporters defended his comments as a figure of speech voiced by an exasperated official.

By approving the project, officials sought to avoid legal action from Baldwin & Sons and the California Department of Housing and Community Development (HCD), which considers Quail Meadows a “by-right” development due to its inclusion of affordable housing units.

Under California law, this designation grants the project limited discretionary review, making it difficult for local governments to reject it outright.

Ehlers warned that if the city had denied the project, it could have faced lawsuits from both the developer and the state.

Financial ties and conflict of interest concerns

In the wake of the project’s approval, scrutiny has intensified over financial connections between Baldwin & Sons and current and former city officials, with critics questioning whether the developer’s influence played a role in securing approval.

Councilmember Joy Lyndes recused herself from voting on the project after self-reporting that she worked as an outside landscape architect consultant for the development. Public records filed with the Fair Political Practices Commission in 2021 reveal that her now-defunct company, Coastal Sage Landscape Architecture, had a financial interest of $10,000 or more in Baldwin & Sons, specifically a consulting contract.

Lyndes told The Coast News that after her business closed, she was hired as a design landscape architect for Integrated Design Services Group (IDS), which subsequently absorbed and “re-contracted” her former company’s contract with Baldwin & Sons.

Similarly, Encinitas planning commissioner Steve Dalton initially recused himself from deliberations on Quail Meadows, citing professional ties to an undisclosed entity benefiting from the project. In his self-reporting, Dalton did not specify whether his work was with Baldwin & Sons or another entity.

However, Dalton reversed his position weeks later, stating that his initial concern and recusal were no longer relevant or necessary. Councilmember Jim O’Hara told The Coast News that he has requested clarification from the city attorney regarding Dalton’s potential conflict of interest.

Adding to concerns over developer influence in local politics, records from the city clerk’s office show that Baldwin & Sons donated $3,000 to a political action committee (PAC) named “Encinitas Citizens United in Support of Tony Kranz for Mayor 2024.”

While no evidence suggests Kranz directly solicited the contribution or violated campaign finance laws, critics say the donation, regardless of size or legality, reflects a broader issue of developer money shaping policy decisions in coastal communities like Encinitas.

“This [money] in our elections is absolutely a problem,” said Ehlers. “I think voters completely rejected the people backed by that side in this last election. I was personally appalled at the level of donations made by R-30 landowners and developers to past council members for future campaigns.”

Former mayoral candidate Cindy Cremona echoed similar concerns, arguing that while recusals may satisfy legal requirements, elected officials should avoid any financial ties to developers seeking project approvals.

“I do think that recusing yourself from a project is appropriate and probably legal,” Cremona said. “But in many people’s mind, including my own, council members or people running for council should not be taking money from developers who may be putting projects in front of them. All these examples are absolutely conflicts of interest, and this kind of thing unfortunately has become normal in Encinitas.”

Legal troubles for Baldwin & Sons

Beyond Encinitas, Baldwin & Sons has faced a series of legal battles, including a high-profile dispute with the San Diego Water Board over alleged environmental violations in Orange County.

In 2020, the California Regional Water Quality Control Board imposed a $6.6 million fine on the developer, citing “egregious” violations of environmental laws at the Portola Center South development, a 900-unit luxury housing project in Lake Forest.

Regulators accused Baldwin & Sons of discharging 6.3 million gallons of untreated stormwater into Aliso Creek, contaminating the waterway with toxins and eroding the surrounding landscape.

“The sheer number and days of violations, volume of polluted discharges, and repeated failures to comply with the most fundamental requirements of the municipal ordinances and statewide construction stormwater permit are unprecedented in this region,” said David Gibson, executive officer of the San Diego Water Board. “The actions of Baldwin & Sons and its partners and contractors, which resulted in significant costs to the public and environmental harm to Aliso Creek and its tributaries, merits the harshest possible enforcement response.”

Baldwin & Sons has since countersued the water board, alleging that the regulatory process was biased and that some evidence used against them was improperly obtained. A court hearing is scheduled later this month, though no trial date has been set, a water board spokesperson confirmed.

In addition to the Orange County case, Baldwin & Sons was sued in 2021 by the owner of Cuppa Juice Garden Cafe in Encinitas after a failed drainage system at the Quail Meadows site allegedly caused severe flooding, forcing the business to close.

The lawsuit, which accused Baldwin & Sons and the City of Encinitas of negligence, settled in 2023, with the developer paying $180,000 to Cuppa Juice, according to a copy of the agreement obtained by The Coast News.

Baldwin & Sons could not be reached for comment on this story. 

Coastal Commission fight looms

An appeal to the California Coastal Commission likely represents one of the last opportunities to alter the Quail Meadows project. The appeal process would analyze the project’s compatibility with the city’s Local Coastal Program, which seeks to harmonize development with protecting critical natural resources along the coastline.

While the Coastal Commission lacks authority to override state housing mandates, it can impose additional environmental conditions or reject portions of the project that conflict with coastal regulations.

Dr. Dave Owen, an environmental water and land use professor at UC Hastings Law School, said Baldwin & Sons’ history of alleged ecological violations could influence the commission’s review.

“The Coastal Commission does have concerns about a development’s impacts on water quality, so with a track record of pollution issues, that affects their trust in this developer,” Owen said. “The commission wants the developer to be an upstanding actor. If they have a bad track record, everything will get a closer look. So [Baldwin & Sons] is probably coming into this one with less credibility.” 

Residents have also raised concerns over the project’s proximity to wetlands, arguing that the Coastal Commission’s jurisdiction over wetland restoration and drainage improvements could allow for heightened scrutiny.

“We believe that portions of this project extend into a wetland, which changes the regulatory review process,” said Ehlers.

If determined to be wetlands, the Coastal Commission would likely assess the development using criteria different from those of other parcels of land, looking at potential impacts on wetland ecology and protected species. 

CORRECTION: This story contains corrections related to Councilmember Joy Lyndes’ official titles with her former company, Coastal Sage Landscape Architecture and her role with IDS Group. This story also clarifies Lyndes’ “financial interest” with her former company and Baldwin & Sons as a “consulting contract.”