DEL MAR — The 22nd District Agricultural Association board approved an agreement with the city of Del Mar to kick off negotiations about potentially constructing 61 affordable housing units on fairgrounds property.
Approved unanimously at the board’s Feb. 20 meeting, the exclusive negotiating rights agreement states that the Del Mar Fairgrounds and the city will work together to identify a “mutually agreeable site” for the development of affordable housing, determine the scope and feasibility of the project, and set standards for a long-term ground lease.
The board’s vote is good news for the city, which is required by the state to agree with the fairgrounds by April to maintain an in-compliance 6th Cycle Housing Element. The agreement will go before the Del Mar City Council for approval in March, according to City Manager Ashley Jones.
“At the staff level, we are supportive of the agreement and feel it meets the city’s 6th Cycle Housing Element requirements and compliments that Master Planning effort to be completed by the Fairgrounds,” Jones said.
Fairgrounds staff and the city collaboratively drafted the agreement, with the fairgrounds forming an affordable housing ad-hoc committee to focus on this issue in 2021.
The agreement, effective April 15, lays out a schedule of steps to take over the next two years, with the option of two six-month extensions.
The 22nd DAA — the body representing the fairgrounds — will present prospective development sites to the city by the end of the year, with a final development site to be chosen by both the city and fairgrounds within the following 14 months.
Board member and ad-hoc committee representative Kathlyn Mead reminded the board that this is not an agreement to build housing on the fairgrounds but to explore the possibility.
“This is a negotiation,” Mead said. “This doesn’t necessarily mean we’re going to find a site, but this puts us in a position where we can actually have that discussion, and hopefully come forward with some recommendations.”
The agreement also states that the city and fairgrounds will work with state representatives to amend the Food and Agriculture Code to extend the maximum lease term on the site from 55 years to up to 99 years.
Fairgrounds CEO Carlene Moore said affordable housing developments have recently benefited from extended terms of around 60 years or more.
Some board members questioned why the agreement was “exclusive” and whether the fairgrounds would also explore working with other cities to develop housing.
However, board member Joyce Rowland emphasized that this agreement is only coming up because of the specific needs of the city of Del Mar and their request to work with the fairgrounds.
“This has a history because so much of the land of the city of Del Mar is encompassed in the fairgrounds,” Rowland said. “It is a very specific request, and we have no interest in soliciting other jurisdictions. It’s kind of a one-off focus for the city of Del Mar.”
In the future, Moore will represent the fairgrounds in negotiations, and Del Mar City Manager Ashley Jones will represent the city.
If both parties agree on a site, the city would then go toward soliciting developers and funding and eventually entering into a ground lease with the fairgrounds. Funding for the project has yet to be identified but could come from low-income tax credits or funding from the state or San Diego County.
Depending on when funding could be obtained, a rough timeline was presented to the fairgrounds in November, anticipating the potential completion of construction by 2031.
In conjunction with the exclusive negotiating rights agreement, the 22nd DAA board also adopted a resolution stating that they may have to step away from affordable housing discussions if plans move forward to relocate a portion of the LOSSAN rail through the fairgrounds property.
These concerns first came up last fall as SANDAG continues to explore new realignment routes for a portion of the tracks running along the fragile Del Mar bluffs. The fairgrounds issued a concerned letter to the city in November after the City Council said they supported exploring all potential routes, including one running through the fairgrounds.
On Tuesday, the board reaffirmed that they oppose any rail realignment impacting their operational, economic, environmental, or planning needs.
“All the work we just talked about… if this discussion about the rail goes forward, our attention would be redirected,” Rowland said.
