Del Mar City Council Meeting Agenda
Del Mar Town Hall
1050 Camino del Mar, Del Mar, California
August 25, 2026 City Council Special Closed Session Meeting
INFORMATION RECEIVED
AFTER THE COUNCIL AGENDA
WAS DISTRIBUTED
(“Red Dots”)
1 Leslie Carrillo
From: Denise Ortiz <[email protected]>
Sent: Monday, August 24, 2026 3:51 PM
To: City Clerk Mail Box
Cc: Ashley Jones; Ralph Hicks; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; carol lazier; Brooke Miller
Subject: RE: Red Dot: City Council Special Meeting, August 25, 2026, Item III(A): 6th Cycle Housing Element Implementation
Attachments: Lazier_Program 1E Comment Letter to CODM 4926-5217-6585 v.4.pdf; 8.25.26 Closed Session_Lazier Comments.pdf
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All,
I’m resending my earlier email, as the City Clerk’s email address in my original message contained a typo.
Best regards,
Denise Ortiz
Denise Ortiz
Practice Specialist
501 West Broadway, 18th Floor
San Diego, CA 92101
Direct: +1.619.338.6575 | Office: +1.619.338.6500
[email protected] | sheppard.com
From: Denise Ortiz
Sent: Monday, August 24, 2026 3:32 PM
To: '[email protected]' <[email protected]>
Cc: '[email protected]' <[email protected]>; '[email protected]' <[email protected]>; '[email protected]' <[email protected]>; '[email protected]' <[email protected]>; '[email protected]' <[email protected]>; '[email protected]' <[email protected]>; '[email protected]' <[email protected]>; carol lazier <[email protected]>; Brooke Miller <[email protected]> Subject: Red Dot: City Council Special Meeting, August 25, 2026, Item III(A): 6th Cycle Housing Element Implementation Mayor Martinez and Members of the City Council:
Attached please find comment letters from Attorney Brooke Miller and Carol Lazier regarding the August 25, 2026 City Council Special Meeting.
August 25, 2026 Item A
2 Best regards,
Denise Ortiz
Denise Ortiz
Practice Specialist
501 West Broadway, 18th Floor
San Diego, CA 92101
Direct: +1.619.338.6575 | Office: +1.619.338.6500
[email protected] | sheppard.com
Attention: This message is sent by a law firm and may contain information that is privileged or confidential. If you received this transmission in error, please notify the sender by reply e-mail and delete the message and any attachments.
August 25, 2026 Item A
Sheppard, Mullin, Richter & Hampton LLP
501 West Broadway, 18th Floor
San Diego, CA 92101
T: +1.619.338.6500 | F: +1.619.234.3815 sheppard.com
August 24, 2026 +1.619.338.6530
[email protected]
VIA US MAIL AND EMAIL
City of Del Mar
Mayor Tracy Martinez and City Council
1050 Camino Del Mar
Del Mar, CA 92014
E-Mail: [email protected]
Re: Comment letter to August 25, 2026 Special Meeting Closed Session Agenda Item III(A) Certified 6th Cycle Housing Element Program 1E: Rezoning of North Bluff Property (929 Border Ave.)
Dear Mayor Martinez and Members of the City Council:
As you know, this firm represents Carol Lazier, the owner of residential real property in the City of Del Mar (“City”) identified as 929 Border Avenue, Assessor’s Parcel Numbers (“APNs”) 298- 241-06 and 298-241-07 (“Property”). As you are also aware, on August 18, 2026, the 22nd District Agricultural Association (“22nd DAA”) terminated the Affordable Housing Site Due Diligence and Development and Feasibility Analysis Agreement (previously called the Exclusive Negotiating Rights Agreement) between the 22nd DAA and the City relating to the potential development of affordable housing on State Fairgrounds property (“ENRA”).
The purpose of the ENRA was to implement Program 3A (“Pursue a Binding Agreement with the State to Develop Housing on the Fairgrounds Property”) of the City’s certified 6th Cycle Housing Element.1 As the State Department of Housing and Community Development (“HCD”) has previously and repeatedly advised the City by correspondence dated December 11, 20242 and January 15, 20263
: “[s]hould the ENRA for the Fairgrounds Affordable Housing project be suspended or terminated… then Program 1E will be required.”4 Due to termination of the ENRA, as discussed herein, the City is legally obligated to rezone the Property to the Housing Element Implementation Overlay Zone, Del Mar Municipal Code Chapter
30.92, to accommodate housing by right at a density of up to 25 dwelling units per net acre. 1 https://www.delmar.ca.us/DocumentCenter/View/8567/04_Housing-Plan_FINAL 2 https://www.hcd.ca.gov/sites/default/files/docs/planning-and-community/HAU/del-mar-he-ta-121124.pdf 3 https://www.hcd.ca.gov/sites/default/files/docs/planning-and-community/HAU/del-mar-hei-loi-011526.pdf 4 December 11, 2024 correspondence from HCD to City Manager Ashley Jones, citing Gov. Code § 65863, subd.(a). HCD’s January 15, 2026 correspondence similarly states: “HCD reminds the City that Program 1E is required should Program 3A’s binding agreement be suspended or terminated[.]” HCD further advised the City that “substantial modifications to the sites inventory and program actions would require a housing element amendment, which must be reviewed by HCD prior to adoption.” (Citing Gov. Code § 65585, subd. (b).) No such amendments have been reviewed or approved.
August 25, 2026 Item A
City Council
August 24, 2026
Program 1E of the City’s certified Housing Element states:
Housing Program 1E: Rezone of Vacant North Bluff and/or South Stratford Properties (This contingency program is required only if Program 3A is not timely implemented)
The Housing Element proposes to develop at least 54[
5 ] affordable units on the
State Fairgrounds property through a binding agreement with the State (Program 3A). By April 2024, the City must either achieve a binding agreement or implement this rezone program. For this rezone program, the City Council will take action to consider which sites to rezone (of the nine total sites listed in Program 1E) as needed to address the deficit of 54 lower income affordable units. The rezone action would be addressed by applying the Housing Element Implementation Overlay Zone to accommodate development of housing at 20-25 dwelling units per acre “by right” per Government Code Sections 65583.2(h) and (i). The rezone action will apply to as many of the nine candidate sites on the North Bluff and/or South Stratford as necessary to demonstrate sufficient capacity to meet the City’s RHNA for lower income units. Implementation of this contingency program is anticipated to address the City’s RHNA and fair housing needs for extremely lowincome households in a manner that will integrate lower income units into the overall development and demonstrate connectedness to the greater City of Del Mar community.
(Emphasis added.)
Consistent with Program 1E, the Housing Element, Appendix B (“Candidate Sites Analysis”) identified the Property as “Low and Very Low-Income Sites” to be rezoned “HEI (Proposed”) at a density of 20-25 dwelling units per acre to accommodate up to 36 potential “Lower Income” units.
Appendix B further states: “The rezone action would be addressed by applying the Housing Element Implementation Overlay Zone to accommodate development of housing at 20-25 dwelling units per acre ‘by right’ per Government Code Sections 65583.2(h) and (i). Table B-3 shows the sites to be considered if necessary to implement the contingency rezone via Program 1E.”
(Emphasis added.)
5 We understand this number was subsequently increased to 61 to accommodate the City’s unmet housing need from the 5th Cycle.
August 25, 2026 Item A
City Council
August 24, 2026
The Housing Element Implementation Overlay Zone (Del Mar Municipal Code [DMMC] Chapter
30.92) (“HEI-OZ”) was created by the City Council and certified by the Coastal Commission “in anticipation of applying it to various parcels during the City’s 6th Housing Element Cycle (2021- 2028). These include, but are not limited to, up to six parcels along Border Avenue/North Bluff [inclusive of the Property] and up to three vacant parcels at the south end of Stratford Court.”6 The HEI-OZ establishes a density of “20-25 dwelling units per net[ 7 ] acre” pursuant to DMMC
30.92.040(A). State law defines the “maximum allowable residential density” under a zoning ordinance that establishes a “range of density” (here, 20-25 dwelling units per acre) as “the greatest number of units allowed by the specific zoning range”. (Gov. Code § 65915(o)(6).) As such, Program 1E requires rezoning to the HEI-OZ to allow a maximum density of 25 dwelling units per net acre.
Multifamily housing development is allowed by right within the HEI-OZ with administrative, stafflevel approval and without a public hearing. Pursuant to the HEI-OZ regulations, DMMC Section
30.92.030, “[n]otwithstanding the standard permit process provisions of the Del Mar Municipal Code, permit approvals for proposed multiple dwelling unit housing development within the Housing Element Implementation Overlay Zone shall be issued in accordance with an administrative level ministerial approval process”. (Emphasis added.) Pursuant to DMMC Sections 30.92.030(C)(6) and 30.75.080(E), the “Director of Planning and Community Development shall serve as the Issuing Authority to render a determination on applications for Coastal Development Permits for Development applications for by-right multiple dwelling units” in the HEI-OZ.
Further, both the rezoning and administrative development permits issued pursuant to the HEIOZ regulations are exempt from the California Environmental Quality Act, Public Resources Code section 21000 et seq. (“CEQA”) as a matter of State law. Although the Housing Element, Appendix B anticipates that “Environmental conditions were evaluated at a program level in the Housing Element Program EIR and will need to be further evaluated and factored in at the project level”, the State Legislature in 2025 enacted a statutory exemption, codified at Public Resources Code Section 21080.085(a), which states: “This division does not apply to a rezoning that implements the schedule of actions contained in an approved housing element[.]” (Emphasis added.) This exemption applies to rezoning of property that contains within its boundaries “natural and protected lands as defined pursuant to [Public Resources Code] Section 21067.5” provided those areas are excluded from the rezoning; here, the Property proposed for rezoning pursuant to Program 1E excludes natural and protected lands as defined.8 Moreover, ministerial permits issued pursuant to the HEI-OZ regulations are also exempt from CEQA pursuant to Public Resources section 21080(b)(1)9
. As such, the City may not require further project-level CEQA analysis, and requiring such analysis notwithstanding these exemptions is an abuse of discretion. (See Hilltop Group, Inc. v. County of San Diego (2024) 99 Cal. App. 5th 890.) 6 See Coastal Commission staff report, May 11-13, 2022, Item W16b (https://documents.coastal.ca.gov/reports/2022/5/W16b/w16b-5-2022-report.pdf) 7 Pursuant to DMMC section 30.04.120, “Net means the area of a lot or parcel, exclusive of any portion of such land devoted to or encumbered by a public right-of-way granted or condemned for the purposes of vehicular access.”
8 Reference application materials relating to CDP23-008 and our prior correspondence. 9 “This division does not apply to any of the following activities: [¶] (1) Ministerial projects proposed to be carried out or approved by public agencies.”
August 25, 2026 Item A
City Council
August 24, 2026
We understand that the City has recently taken steps to initiate rezoning of the North Bluff properties including the Property to a new “RM-North Zone” designation to allow residential development of up to 20 dwelling units per acre “in preparation for the 7th Cycle Housing Element” and “in addition to the City’s adopted [Housing Element] strategies”.10 As the City’s staff report explained, “[t]his is a different approach and circumstance than identified in the 6th Cycle Housing Element Program 1E.” In light of the recent termination of the ENRA by the 22nd DAA triggering the City’s obligation to implement Program 1E, the City should immediately pause the “RM-North Zone” effort and comply with its legal obligations pursuant to its certified Housing Element program and State housing laws by rezoning the Property to the HEI-OZ.
To conclude, we have observed the State’s recent legal actions against cities that have failed to comply with their rezoning obligations under State housing laws.11 As you are all well aware, failure to maintain a compliant Housing Element triggers the Builder’s Remedy, and denial of a Builder’s Remedy project in violation of State housing laws carries consequences including but not limited to a minimum fine of $10,000 per unit of the proposed project.12 State law effective as of January 1, 2025 (Senate Bill 1037) further places the City at risk of liability for civil penalties for each month it fails to timely comply with the State Housing Element Law. As such, any delay in undertaking the City’s legal obligations to implement Program 1E place substantial public resources at risk.
With the inclusion of affordable units, using the Housing Element’s assumed net acreage and the maximum allowable residential density under the HEI-OZ, a project on the Property could accommodate up to 271 dwelling units and help the City not only achieve its Housing Element goals but also contribute to overall housing supply in the Coastal Zone during the continuing severe housing crisis. On behalf of Ms. Lazier, we hope that it is not necessary to reiterate further the risks to the City of a noncompliant Housing Element and that the City Council will take swift action to comply with Program 1E as outlined herein to achieve compliance with its certified housing plan and contribute its fair share to easing the housing crisis.
Sincerely,
Brooke Miller
for SHEPPARD, MULLIN, RICHTER & HAMPTON LLP
SMRH:4926-5217-6585.4
cc: Ashley Jones, City Manager
Ralph Hicks, Devaney Pate Morris & Cameron LLP
Department of Housing and Community Development
Rob Bonta, Office of the Attorney General
Carol Lazier
10 City Council Agenda Report, “Direction on Planning for 7th Cycle”, May 19, 2026. 11 https://oag.ca.gov/news/press-releases/attorney-general-bonta-newsom-administration-take-legalaction-against-local 12 See California Department of Justice Office of the Attorney General Legal Alert OAG 2025-03. https://oag.ca.gov/system/files/attachments/press-docs/legal-alert-oag-2025-03.pdf August 25, 2026 Item A
August 24, 2026
Mayor Tracy Martinez and Members of the Del Mar City Council City of Del Mar
1050 Camino Del Mar
Del Mar, CA 92014
Re: Immediate Action Required to Implement Housing Element Program 1E Dear Mayor Martinez and Members of the City Council,
As I’ve stated in previous correspondence with the City regarding my property at 929 Border Avenue, I believe that mixed-income housing on the North Bluff is an important part of helping Del Mar meet its state housing mandates and, for the first time, provide public open space and access to the coast from this location. With the 22nd District Agricultural Association’s recent termination of its agreement with the City, Del Mar must move forward with the contingency plan it has already adopted in its certified Housing Element.
This is no longer a question of whether the City should pursue the Fairgrounds strategy (Program 3A). Nor is this simply a question of what Del Mar might want to do in its next Housing Element as suggested with the discussions considering a new “RM-North Zone” for the 7th Cycle. The City has already received clear direction from HCD and state officials on what must happen after termination of the Fairgrounds agreement.
As explained in the August 24, 2026 letter from my attorneys and in past letters from HCD, the City’s Housing Element is clear that failure of Program 3A triggers the requirement to rezone identified North Bluff and/or South Stratford properties to accommodate the City’s affordable housing obligation (Program 1E).
The consequences of further delay are significant. Failure to maintain compliance with State Housing Element requirements will expose the City to continued litigation and other State enforcement consequences, including financial penalties.
I am asking the City Council to take immediate steps to implement Program 1E and rezone 929 Border Avenue, consistent with the City's certified Housing Element and State requirements. It is time to implement the plan that was adopted for exactly this circumstance.
Now that the fairgrounds are no longer an option for Del Mar, the city should move forward with Seaside Ridge in conformance with its own Housing Element. With Seaside Ridge, the mayor and the city council could bring a meaningful number of affordable housing units online, as well as a new public park. You should seize this opportunity. I look forward to working with the City to move this process forward.
Sincerely,
Carol Lazier, Owner
929 Border Avenue
Del Mar, California
August 25, 2026 Item A