DEL MAR — The Del Mar City Council and the Del Mar Fairgrounds board have amended an agreement for the study of developing affordable housing on the Fairgrounds property, as the state’s deadline grows closer for the city to obtain a lease.
Del Mar and the 22nd District Agricultural Association board, which governs the Fairgrounds, first approved the exclusive negotiating rights agreement, or ENRA, in 2024. The agreement stated that the two entities would work together to identify a “mutually agreeable site” for a housing development by studying potential sites and setting standards for a long-term ground lease.
This agreement is the result of several years of discussions between the two entities regarding the Fairgrounds’ potential assistance in creating 61 affordable housing units, which are required under the city’s 6th Cycle Housing Element.
The amendment adds language aligning the ENRA with state housing laws, requiring all agreement actions and milestones to be approved by the 22nd DAA board, removes references to exclusivity with the city, and adds other clarifications, including that the District is not obligated to enter into a lease with the city.
The 22nd DAA board approved the amendment last month, and the City Council approved it at their Tuesday meeting.
“I just want to thank the district staff and board members that we worked with for coming up with this amendment on the ENRA. We tried to be responsive to comments we heard from the board. We were happy to work with your team to make these changes,” Del Mar City Manager Ashley Jones told the board on March 10.
Under the changes, the agreement was renamed from the ENRA to the Agreement for Affordable Housing Site Due Diligence and Development Feasibility Analysis.
The state Housing and Community Development Department has set various deadlines for Del Mar to meet milestones in its negotiations with the Fairgrounds, including a November deadline to approve a ground lease for housing.
If the city and Fairgrounds cannot reach an agreement by the state’s deadlines, Del Mar will have to rezone other sites for housing development, such as the North Bluff.
On March 10, some 22nd DAA board members said it’s a very real possibility that the Fairgrounds won’t be able to commit to a housing development or lease by the November deadline, as the Fairgrounds is in the midst of its master planning effort.
Board member Phil Blair said the Fairgrounds needs to be able to answer the questions of “if” they will place housing and “where” they will place it at the same time.
“It may be years before we answer either one of those, depending on where our strategic plan goes,” Blair said.
Housing discussions have hit some bumps in the road over the past two years. Early last year, the board paused housing talks for a month after then-Del Mar Mayor Terry Gaasterland publicly shared support for a proposed rail realignment route that would be detrimental to the Fairgrounds.
For several months afterward, the board regularly revisited whether to continue housing discussions with the city and considered pausing housing negotiations again.
On March 10, board member Mark Arabo shared concerns that the city was promising housing to the state, which the Fairgrounds may decide not to deliver. He also brought up a recent letter from the state Attorney General’s Office warning the city it could face penalties if it does not process the application for another housing project called Seaside Ridge.
“I just want to make sure the Fairgrounds in the negotiating language is protected, we’re indemnified, and we don’t get dragged into a fight between the Attorney General’s Office and the city of Del Mar,” Arabo said.
Fairgrounds CEO Carlene Moore has repeatedly assured the board that they will have the final say on whether to move forward with a housing development, and said the Department of Housing and Community Development understands that the Fairgrounds has not committed to anything at this point.
“My team has been very clear to HCD staff. I told them, ‘I can’t tell you when we will make this decision,’” Moore said.
Fairgrounds legal counsel also assured the board that the agreement properly indemnifies the Fairgrounds from any legal liability.
Other board members have noted that the Seaside Ridge project is not under the purview of the Fairgrounds and is unrelated to discussions of the negotiating agreement.
The Fairgrounds and the city have conducted feasibility studies for potential housing sites on the property. These include the Del Mar Fire Department site just north of the San Dieguito Lagoon bridge, the east main stable gate at the corner of Jimmy Durante Boulevard and Via de la Valle, and a site south of the east stable gate.
These studies, funded by the state Housing Acceleration Program, also examined two housing sites on the property that fall within the city of San Diego’s boundaries. The results of the studies are expected to be presented formally to the city and Fairgrounds board in June.
At the City Council’s Tuesday meeting, Del Mar resident Shirli Weiss shared concerns about the Fairgrounds’ commitment to moving forward with housing, and said the amended agreement is very noncommittal.
“I would encourage the City Council to look to other avenues to meet the requirements of the state with respect to housing. I personally have no faith in the Fairgrounds’ desire to go forward with that endeavor,” Weiss said.
The council did not discuss the amendments but approved them unanimously.
