DEL MAR — The 22nd District Agricultural Association has temporarily halted talks with the city of Del Mar about constructing affordable housing at the Fairgrounds, saying they were “stabbed in the back” after the Del Mar mayor publicly supported a rail realignment route that would devastate Fairgrounds operations.
Officials with the city of Del Mar and the Fairgrounds entered into an exclusive negotiating rights agreement last year to discuss building 60 affordable units on the Fairgrounds property to help the city meet its Housing Element requirements.
If this agreement is unsuccessful, state housing officials have said the city must rezone other city parcels, including the north bluff, for housing.
On Tuesday afternoon, the 22nd DAA Board of Directors, which manages the Fairgrounds, voted 5-3 to pause talks with the city for one month and revisit the matter at the board’s next meeting on March 11.
Board members said recent comments by Del Mar Mayor Terry Gaasterland contradict the city’s guiding principles emphasizing the importance of protecting the interests of the Fairgrounds, as well as a joint resolution that both parties entered into last summer.
“We had a deal, and Del Mar broke the deal. It’s as simple as that. We have an obligation to the district, to protect the district and take care of the district,” board member Mark Arabo said.
In late January, Gaasterland told KPBS that a rail realignment route known as Alternative A would be the best option for moving the rail off the bluffs, as it would run under the Fairgrounds. She repeated a similar assertion to NBC7 over the weekend, noting that this route would not run underneath homes in Del Mar.
Ultimately, the decision on which route to move forward will be decided by the SANDAG board of directors, not by any individual city. Alternative A was one of three realignments proposed by SANDAG last summer, but it does not appear to be a top recommendation after releasing a value analysis report last week.
This is not the first time Del Mar officials’ stance on rail realignments has caused rifts that jeopardized affordable housing talks. In late 2023, the fairgrounds issued a letter of concern after the City Council said they supported exploring all potential rail routes, including one running through the fairgrounds.
“There’s been a little bit of a history,” Fairgrounds CEO Carlene Moore said.
To smooth over bad blood beyond the cities of Solana Beach, Del Mar and the Fairgrounds due to Alternative A, the three parties entered a joint resolution last summer that calls on SANDAG to avoid or minimize adverse impacts on businesses, public and private property, public safety, tourism, sensitive environmental areas and the regional economy.
Fairgrounds board member Michael Gelfand, who motioned to pause talks for one month, said the city “stabbed them in the back” by supporting a route that could negatively impact their property.
“This is not retaliation. It’s a response to a betrayal,” Gelfand said.
Gaasterland said she does not want to be silenced and needs to stick up for her residents who could be negatively impacted by routes, resulting in eminent domain issues or other issues.
“I and my council colleagues must strike a balance between advocating for our residents and community and advocating for community partners like the Fairgrounds,” Gaasterland said.
After the meeting, she told The Coast News that she feels “neutral” about the Fairgrounds’ decision despite the potential consequences for the city.
“They’re also walking away from this in their own way,” she said.
Officials urge the board not to pause talks
Del Mar City Manager Ashley Jones, City Councilmember Tracy Martinez and other speakers pleaded with the Fairgrounds not to pause affordable housing talks.
Jones, who has led discussions with the Fairgrounds regarding the housing project, said the city stands by the rail principles it adopted in 2023. She also noted that seasonal workers at the Fairgrounds have contributed to the high number of housing units the city is obligated to produce.
“Please understand that the city stands by the council-adopted principles. That has not changed,” Jones said.
Other speakers noted that California is in a housing crisis and that, as a state agency, the Fairgrounds should make efforts to address this crisis.
Several board members said pausing discussions with the city, even briefly, was not a good idea. Katelyn Mead said it seemed like a “tit for tat,” and Don Moser said Gaasterland did not appear to be speaking for the whole city.
“The current mayor in Del Mar has often presented her own views rather than the council’s views, and I think that sort of clouds the interpretation of this motion. I think we need to consider that we do have an obligation to provide affordable housing,” Moser said.
In their decision, Fairgrounds board members also cited the city’s recent request for SANDAG to pause the planned San Dieguito Double Tracking and Special Events Platform Project until after a rail alignment has been chosen.
Fairgrounds and NCTD officials opposed this stance, stating that the project, which will replace the rail bridge over the San Dieguito lagoon, add double-tracking, and construct a special events rail platform at the Fairgrounds, is long overdue and has already been allocated crucial funding.
At the same meeting on Tuesday, SANDAG provided an update on the project, stating that they hope to begin construction in early 2026.
The Del Mar City Council has not taken a formal stance on a rail route realignment at this point, despite Fairgrounds officials explicitly asking the city to oppose Alternative A in the past.
The SANDAG board of directors will choose one or more routes to advance for further environmental study at their Feb. 28 meeting.
After the meeting, Jones said she is optimistic that the city and Fairgrounds can reach a solution.
“While the board’s decision today was disappointing, I am looking forward to connecting with their CEO to determine next steps and actions needed to resume work under the ENRA [exclusive negotiating rights agreement] following next month’s board meeting. I’m optimistic that we can find a path forward,” Jones said.
