CARLSBAD — Nearly 100 hotel rooms will be converted into housing units as part of a project recently recommended for approval by the Carlsbad Planning Commission, with final approval to come from the Carlsbad City Council.
The existing Studio 6 hotel, a Motel 6 site offering extended stays, is situated a three-acre lot in an industrial area at Avenida Encinas and Cannon Road near the Carlsbad Strawberry Fields. The hotel’s 98 rooms will be converted into studio and one-bedroom rental units, with 15 of these units being deed-restricted as affordable housing.
Project applicant Alliance Development Services is partnering with the hotel’s owners to produce the project, which will be called The Flats at Terramar.
Since the development will largely maintain the existing building as is without significant external changes, it will have minimal impacts on the surrounding area and allow the housing units to be available sooner than in a new build, according to Alliance Development Services.
“We think this is a good idea to provide the affordable housing in an expeditious manner,” said Jim McMenamin, director of forward planning and development at ADS.
Carlsbad planning commissioners unanimously recommended approval of the project on August 20. Several commissioners expressed enthusiasm about the repurposing of the building, which was built in 2000, and the inclusion of 125 parking spots.
“The structure itself is not that dated,” said Planning Commission Chair Roy Meenes.
“I think it’s a win-win all the way around.”
Exterior additions to the site will include two pickleball courts, a dog run, a bike and surfboard storage area, and a trash structure. On the inside, the current hotel rooms will be outfitted with the required kitchen appliances and other features required under state building code. The floor plan will largely remain unchanged.
Under the state density bonus law, the city also granted various waivers of development standards due to the inclusion of affordable units. One of these waivers allows the height limit to be increased from 45 feet to 46 feet, to accommodate the highest point of towers on the existing building, and the height limit for the rest of the roofline to be increased from 35 to 37 feet.
“The Flats at Terramar converts an underutilized and outdated hotel, well past its prime and no longer an economically beneficial use, into much-needed, attractive workforce and affordable housing with convenient access to jobs and goods and services,” said Anna McPherson, principal environmental consultant with Atlantis Group, the land use consultant for the project.
The 15 deed-restricted units will include seven very low-income, five low-income, and three moderate-income units.
McMenamin said that after obtaining the necessary permits, they plan to begin work on converting the hotel in early 2026 and hope to make the units available in early 2027.
ADS has also successfully developed a similar housing project in a former hotel in La Mesa, he said.
The City Council will make a final determination regarding the project in October, according to the city.
EDITOR’S NOTE: This story previously stated that the project was approved by the Planning Commission, and has been updated to clarify that it still requires approval by the City Council in order to move forward. This story was also updated to clarify the building height limits.
