DEL MAR — A San Diego judge has granted the City of Del Mar’s motion to dismiss a petition to allow a 259-unit housing project known as Seaside Ridge, stating that the developer needs to exhaust all administrative remedies at the city level before the courts can intervene.
In early 2024, Carol Lazier, the owner of the project site at 929 Border Avenue, filed a lawsuit against the City of Del Mar in San Diego Superior Court, alleging that the city’s repeated rejection of the project application violated state housing law. Lazier asked the courts to compel the city to approve the project.
Judge Wendy Behan issued a tentative ruling on June 12, stating that because Lazier did not first try to appeal the city’s rejection of the project application to the City Council, it was premature for the courts to become involved and order the city to move the project forward.
“Based on the foregoing, Defendant’s motion to dismiss the petition for writ of mandate is granted, as the writ is premature based on Plaintiff’s failure to exhaust administrative remedies in the form of an appeal to the City’s city council,” Behan said.
City officials applauded the ruling.
“The City agrees with the Judge’s decision and is happy with the outcome,” Del Mar City Attorney Leslie Devaney said.
The Seaside Ridge project proposes a nine-building development on a 7-acre property just north of Del Mar Dog Beach, with housing units for a mix of income levels, including 42 units for low- to extremely low-income households.
Since the project application was first submitted in the fall of 2022, Del Mar leaders have repeatedly determined it to be incomplete due to the absence of materials required for rezoning, a Local Coastal Program Amendment, a coastal development permit, and conditional use permits for the project.
However, Seaside Ridge has argued that under the builder’s remedy law, the city is required to move forward with the project because its 6th Cycle Housing Element was out of compliance at the time the application was submitted.
While the builder’s remedy has been on the books for decades, developers have increasingly utilized it to expedite affordable housing projects in cities with Housing Elements deemed out of compliance by the Department of Housing and Community Development (HCD).
Seaside Ridge spokesperson Darren Pudgil said the fight to bring affordable housing to Del Mar is “far from over,” but did not specifically confirm whether Seaside Ridge will pursue an appeal to the City Council.
“We are extremely disappointed in the court’s decision and are exploring our legal and legislative options. Unfortunately, the court’s decision ignores both the procedural and substantive issues raised in our opposition,” said Pudgil. “The fact is, Del Mar, which has yet to produce a single unit of affordable housing, has done everything possible to undermine this wonderful project, throwing up one roadblock after another, in violation of state law.”
According to the tentative ruling, Lazier argued that she was not required to exhaust administrative remedies because she never received a final decision from the city regarding the project application.
Lazier also argued that she is not required to file an appeal when it is clear that the city has no intention of processing the project application. Behan said these arguments were not convincing.
“The City represents that the City Council has never taken a position on the Seaside Ridge Development, has made no formal opposition to the project, and even still recognizes the need for more low-income housing, which the project would provide,” the ruling states.
Builder’s remedy
While the ruling is a temporary setback for Seaside Ridge, the state recently saw a favorable outcome for another housing developer who argued the builder’s remedy in the city of La Cañada Flintridge.
Last year, a Los Angeles Superior Court judge sided with a housing developer in their lawsuit against La Cañada Flintridge, ruling that the city violated housing law by refusing to process an application for an affordable housing project that was submitted before the city’s Housing Element was in compliance.
The city initially appealed the ruling but dropped its appeal in March after being told it would have to pay a $14 million bond to continue litigation.
Seaside Ridge has argued that this case sets a precedent, as Del Mar’s 6th Cycle Housing Element was also considered out of compliance by HCD when the project was submitted. However, the city has argued that the builder’s remedy does not apply because the Seaside Ridge project application was never considered complete.
As the smallest city in San Diego County, Del Mar has a limited number of available sites to meet state housing production requirements.
HCD has required Del Mar to identify backup sites that can be rezoned for housing if other sites don’t pan out. One of these backup sites is the 929 Border Ave. property, which Del Mar will have to rezone if it cannot reach an agreement with the Del Mar Fairgrounds to construct affordable housing on their property.
Del Mar leaders continue to discuss a potential affordable housing project with the Fairgrounds, and as such, the city has not been required by the HCD to rezone the property. However, Seaside Ridge representatives argue that the city is now required to rezone the property.
