Encinitas upholds approval of The Cove housing development

ENCINITAS — The Encinitas City Council voted Wednesday to uphold the Planning Commission’s approval of a 42-home development on Pearl Street, denying a local group’s appeal over environmental concerns.

The Batiquitos Lagoon Foundation challenged The Cove project, previously known as La Costa 48, which involves the construction of single-family homes with associated landscaping and trail improvements on a site directly adjacent to the lagoon. 

In the appeal, the nonprofit raised issues related to contaminated soils and bluff erosion, arguing that new environmental impacts should trigger a subsequent environmental impact report (EIR) under the California Environmental Quality Act.

Morgan Gallagher, representing developer Toll Brothers, said during the meeting that the appeal ought to be denied on the basis it concerns a design review application. 

“The first thing I want to mention is that this is a design review application, and on that basis alone, we think that this appeal should be denied,” Gallagher said. “None of the issues that have been raised by the Batiquitos Lagoon Foundation have anything to do with the design of the homes.”

During the public hearing, foundation representatives pointed to the discovery of organochlorine pesticides in Batiquitos Lagoon following a January 2024 storm that caused a bluff collapse. They argued that the stormwater runoff from the construction site contributed to the lagoon contamination and that the project’s stormwater management failed during the heavy rains.

David Hill, a Batiquitos Lagoon Foundation board member who specializes in water quality management, pointed out that 6,300 cubic yards of hazardous waste, including organochlorine pesticides (OCPs), have been present on the property for 45 years, and recent testing in the lagoon showed contamination that was not detected in earlier tests.

“The storm water prevention management program that the contractor was obligated to follow during the rain storms, they violated their management program, and also in violation, obviously, of the (National Pollutant Discharge Elimination System) permit,” Hill said.

City staff countered that the contamination did not directly result from the development. According to the staff report, the contaminated soils had been encapsulated on-site, and the EIR certified for the project in 2019 addressed all relevant environmental impacts.

The staff recommended that the council deny the appeal, noting that the conditions outlined in CEQA Section 15162, which would require a new EIR, had not been met.

The council ultimately sided with staff, affirming that no substantial new environmental information had been provided that would warrant additional environmental review.

“Clearly, there was an immense failure on the part of knowing that there was this active storm drain here, and had real life repercussions that are really terrible to see,” said Councilmember Kellie Hinze. “So, being that this is only the design review and we’ve thoroughly investigated this issue, I’m going to go ahead and move the staff’s recommendation to approve and deny the appeal.”

The project includes a separate effort to address bluff erosion, which occurred on land within the City of Carlsbad’s jurisdiction. According to the developer, a permit from the Coastal Commission is pending to fully repair the bluff.

The project consists of 42 single- and two-story homes in various architectural styles, including modern farmhouses, coastal contemporary and contemporary craftsman designs. Each home will range from approximately 1,600 to 4,000 square feet, and the community is designed to be all-electric with sustainable features like solar panels and electric heat pumps.