CARLSBAD — A new mixed-use development of commercial buildings and more than 200 residential units could signal the end of Carlsbad Village Plaza.
The 4-acre retail center is home to 14 businesses, including Smart and Final, Texas Wine and Spirits, Golden Tee Cocktail Lounge and 7-Eleven, and is adjacent to an Interstate 5 southbound entrance.
A development application submitted to the city proposes 218 residential rental units (with 22 affordable dwellings) and two commercial sites totaling 13,800 square feet, reducing traffic by 4,500 trips per day compared to the existing center.
All of the companies in the plaza, except 7-Eleven, will vacate the plaza and the buildings will be torn down, according to Carlsbad City Planner Eric Lardy.
“Our team has worked hard to design a thoughtful project that delivers needed affordable housing and creates opportunities for local retail businesses, including a neighborhood market,” said Jonathan Frankel of Atlantis Group, representing the property owner. “This property will serve as a model for sustainable, transit-oriented development and we look forward to continued dialogue with the City and Carlsbad community.”
Lardy said a walkway connects two five-story residential buildings with two separate buildings for the commercial spaces. A structure containing 350 parking spaces is being proposed.
Lardy said the project is within a half-mile radius of a transit station. Last year, the California Legislature passed Assembly Bill 2097, prohibiting local agencies from imposing or enforcing parking minimums within one-half mile of a major transit stop, such as the Carlsbad Village Station. However, Lardy said the developer has not indicated it will use AB 2097.
The project will still be required to conduct a California Environmental Quality Act review before heading to the Planning Commission and City Council, as required by the Village and Barrio Master Plan. According to Lardy, the project hearings will likely begin in roughly a year, pending any issues. Construction is not expected until another year later if that process is finalized.
“We just received the application in May for the site development plans,” Lardy said. “It’s not any of the new ministerial state laws. It still goes through our process.”
However, the project is enacting Senate Bill 330, known as the California Housing Crisis Act (or density bonus law), to include more onsite units. Under its current zoning, the project is designated for 145 units, but the developer is requesting a 50% density bonus to reach 218 total units, with 15% reserved for very low-income residents.
“There are certain projects that are eligible for that,” Lardy said of the SB 330. “There is a pre-application process, then an application process, which sets the fees and requirements in place. It sets certain timeframes for our review, but it doesn’t change the CEQA process or approving bodies.”
Sources said the project has been in the works for several years while waiting for the leases of the current businesses to expire before applying. According to city records, a different developer proposed a similar project for the property in 2005, but the plan was unsuccessful.
Across the street, a 156-unit project goes before the Planning Commission on June 21. The Hope Apartments, the second phase of The Lofts at Carlsbad Village, will have 20 affordable units.
Wermers Properties bought The Lofts before its construction and recently purchased the Carlsbad Village Inn, three single-family homes and a vacant property in the same area. The developer seeks a 50% density bonus for the project’s very low-income units.
The developer of Carlsbad Station, another large-scale project on Roosevelt and State streets, pulled its application to construct 79 condos and four commercial spaces. The project was slated to demolish Mas Fina Cantina, Hennessey’s Tavern, other businesses and several apartments, but it will not go forward.
Mas Fina Cantina reopened on June 7 after closing last September. According to several sources, the project fell through due to a lack of financing and was later sold in parcels, one of which was leased back to the popular Mexican restaurant.
