Del Mar City Council
October 20, 2026

Element to meet the City’s assigned RHNA. The Task Force recommended the City-owned 10th Street lot as a high-priority site to build 4 to 6 small units for lower income households.

On March 25, 2021, the City Council adopted the 6th Cycle Housing Element which identified the vacant 10th Street site for production of at least four lower income units. The City relied on this site to gain Housing Element certification from the State in May 2023, and to comply with State law.

On June 22, 2026, the City Council received a presentation of feasibility studies completed by City consultants Stephen Dalton Architects and Keyser Marston Associates for the Fairgrounds and City-owned 10th Street and 28th Street lots relied on for production of lower income units during the 6th Cycle. The studies demonstrate the sites are feasible for housing.

On February 17, 2026, the City Council adopted Resolution 2026-11 declaring the 10th Street vacant lot exempt surplus land in accordance with the Surplus Land Act, which aligns with the statewide priority to promote affordable housing development on surplus public land.

On February 24, 2026, the City provided notice of its intent to lease the vacant surplus property in accordance with California Government Code Section 54220, which requires the City to offer the surplus property to applicable public agencies for open space purposes. The notice was provided to the California Department of Housing and Community Development (HCD), California Natural Resources Agency, California Coastal Commission, County of San Diego Department of Parks and Recreation, and the San Dieguito River Park Joint Powers Authority. The City did not receive any offers or interest in acquiring the property from these agencies within the applicable 60-day period.

On May 22, 2026, the City issued Request for Proposals 2026-04 (RFP) seeking proposals from qualified development teams to partner with the City on an affordable housing project for the site. The City received three proposals: Construction Service Workers LLC; Gangi Development; and LaBarge Industries. Staff evaluated the proposals on criteria including firm experience, feasibility and entitlement readiness, efficient use of City predevelopment funding, leverage and financial capacity, affordability and public benefit, community outreach and responsiveness, and project design/community integration.

DISCUSSION/ANALYSIS:

Based on the review of the proposals submitted by the responsive firms and a series of interviews, staff recommends the City enter into an ENRA with Gangi Development. Gangi Development has extensive experience with affordable housing development including mixed-use development and senior affordable housing development. Gangi Development is currently working on several Surplus Land Act projects in San Diego County and provides a hands-on and adaptable approach to fit the characteristics of the community. Gangi Development is an integrated firm that includes development, architecture, construction, property management, and coordinated project delivery structure. 2 October 20, 2026 Item 9
City Council Agenda Report
ENRA & Predevelopment Funding Agreement – 10th St. Development October 20, 2026

The ENRA sets out a process and schedule of activities, including opportunities for public input and community participation. The ENRA has an initial 12-month term, from October 6, 2026, to October 6, 2027, unless extended as provided in the Agreement.

Primary responsibilities of the selected developer include:
 Complete feasibility analysis, site due diligence, and conceptual plans  Advance project design through permit-ready plans consistent with City standards and coastal context
 Conduct community outreach meetings
 Prepare and submit entitlement applications
 Support environmental review under the California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA)
 Develop a financing strategy and implementation plan
 Provide status updates and project deliverables under the ENRA  Guide the entitlement applications through the City’s local decision-making process  Before building permit issuance, negotiate terms/conditions for the Ground Lease, Housing Agreement, and Development Agreement
The City would provide up to $500,000 in predevelopment funding to advance the project through entitlements and permits, which is structured as a grant to support financial feasibility of the project as further detailed in the Predevelopment Funding Agreement included as Attachment B. City provision of these funds is especially important since a small-scale project such as this will not be competitive for tax credit or other sources of financing that is often utilized for affordable housing development. The City Council allocated funding for the predevelopment grant in the Fiscal Year 2026-2027 budget.

Staff have received a significant volume of communications from neighboring property owners who have expressed concern about the potential design, number of units, residential population, and dedicated parking, among other issues (Attachment C). As such, staff have impressed upon the developer that robust community outreach and engagement will be of particular importance throughout the process.

The recommended Council action does not approve any specific project design or development proposal. Decision points regarding the total number of units, target population (e.g., seniors or families), dedicated parking, and design will come to the City Council at future public meetings for consideration. Prior to City Council consideration, the proposed design will be presented to the Design Review Board and may also be presented to the Planning Commission for consideration of the number of units for recommendation(s) to City Council.

FISCAL IMPACT:

There is no fiscal action to be taken by the City Council related to this agenda item. The $500,000 in predevelopment funding related to the recommended Predevelopment Funding Agreement was allocated in the Fiscal Year 2026-2027 budget. 3 October 20, 2026 Item 9
City Council Agenda Report
ENRA & Predevelopment Funding Agreement – 10th St. Development October 20, 2026

ENVIRONMENTAL IMPACT:

The proposed City Council action does not constitute a “project” under the definition set forth in California Environmental Quality Act (CEQA) Guidelines Section 15378 because it will not have a potential to result in a direct or indirect physical change in the environment and is, therefore, not subject to CEQA. Future processing of an affordable housing development project will involve analysis and preparation of environmental documentation in accordance with CEQA and the National Environmental Policy Act (NEPA) as applicable (i.e., if federal funding is relied on as a financing source for the project).

HOUSING IMPACT:

This action is necessary to implement Housing Element Program 3B, which identifies the City-owned 10th Street property as a site for at least four lower income units to meet a portion of the City’s regional housing needs allocation (RHNA). To date, the City has satisfied 10 of the total 113 lower income RHNA units it was assigned.

NEXUS TO CITY COUNCIL GOALS AND PRIORITIES:

Selecting a developer to partner with the City on the development of the 10th Street vacant lot for affordable housing is a Tier 1 item on the Fiscal Year 2026-2027 City work plan.

ATTACHMENTS:

Attachment A – ENRA with Gangi Development
Attachment B – Predevelopment Funding Agreement
Attachment C – Communications
4 October 20, 2026 Item 9
1 EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT
(10th Street Affordable Housing)
This Exclusive Negotiating Rights Agreement ("Agreement") is entered into as of October 20, 2026, by and between City of Del Mar, a California charter city ("City"), and Gangi Development, a California corporation ("Developer"), based on the information set forth below.

City and Developer are sometimes referred to collectively in this Agreement as the "Parties".

RECITALS
A. The City owns an approximately 0.10 acres (4,356 square feet) vacant, developable property located at 10th Street within the City of Del Mar Civic Center complex (Assessor's Parcel Number, APN 300-093-17-00), as further described in the legal description attached hereto as Exhibit A, incorporated herein by this reference(the "Property").

B. In its Sixth Cycle Housing Element Update, the City identified and included the Property in the Housing Element residential sites inventory as a property to be developed to accommodate housing units affordable to extremely low, very low, and low-income households.

The intent is for the Developer to analyze the feasibility to implement the City’s certified 6th Cycle Housing Element Program 3B plan to build affordable housing on the Property.

C. The site is located within the coastal zone, east of the shoreline, and does not contain any sensitive coastal resources. It is located within the City’s coastal development permit jurisdiction, which means prospective development on the site will be subject to approval of a coastal development permit issued by the City of Del Mar in accordance with Del Mar’s certified Local Coastal Program and that permit will not be appealable to the California Coastal Commission.

D. Through adoption of City Council of the City of Del Mar (the "City Council") Resolution [2026-11], consistent with Government Code Section 54221(b)(1), the City Council declared the Property as "exempt surplus land" under the following "SLA Exemption Regulations": (1) under Government Code Section 54221(f)(1)(B) and Section103(c)(3)(A) of the Department of Housing and Community Development Updated Surplus Land Act Guidelines issued April 2021 and revised August 1, 2024 ("SLA Guidelines") as surplus land that is less than one-half acre in area and is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes; (2) under Government Code Section 54221(f)(1)(A), exempt surplus land that is transferred pursuant to Government Code Section 37364, assuming: (i) not less than 80 percent (80%) of the Property will be used for development of housing; and (ii) not less than 40 percent (40%) of the total number of those housing units developed on the Property shall be affordable to households whose incomes are equal to, or less than, 75 percent (75%) of the maximum income of lower income households, and at least half of which shall be affordable to very low income households; and/or (3) under Government Code 54221(f)(1)(F)(i), exempt surplus land that is to be developed for a housing development, which may have ancillary commercial ground floor uses, that restricts 100 percent (100%) of the residential units to persons and families of low or moderate income, with at least 75 percent (75%) of the residential units restricted to lower income households, as defined in Section 50079.5 of the Attachment A 5 October 20, 2026 Item 9
2 Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Section 50052.5 or 50053 of the Health and Safety Code, for 55 years for rental housing, 45 years for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands, unless a local ordinance or a federal, state, or local grant, tax credit, or other affordable development financing requires a longer period of affordability, and in no event shall the maximum affordable sales price or rent level be higher than 20 percent (20%) below the median market rents or sales prices for the neighborhood in which the Property is located.

E. The scope of the development to be constructed on the Property has not been determined, but it is the intent of the City to potentially impose conditions that will result in the construction of the affordable housing sufficient to meet the terms of one of the SLA Exemption Regulations, as an alternative form of compliance with the Surplus Lands Act.

F. The Developer intends to explore the feasibility of developing the Property for the affordable housing consistent with one of the SLA Exemption Regulations to meet a demonstrated housing need that exists in the community and fulfills the City's housing element goals and objectives.

G. To enable the Developer to conduct the predevelopment activities required under this Agreement, the Parties intend that the City provide the Developer up to Five Hundred Thousand Dollars ($500,000) of predevelopment financing (the "Predevelopment Financing"), subject to City Council approval and the terms of Section 1.4. Developer shall not be required to incur thirdparty costs, submit entitlement applications, commence environmental studies, conduct community outreach or any other predevelopment activities before the Predevelopment Funding Agreement becomes effective.

H. The Developer and the City desire to enter into this Agreement after arm's length voluntary contract negotiations in order to assess the feasibility of developing the Property, determine the scope of a potential Affordable Development, make a preliminary determination on the feasibility of the proposed Affordable Development, and, if desired by both Parties, establish procedures and standards for the negotiation by the Developer and the City of a mutually acceptable "Disposition and Development Agreement" and "Ground Lease Agreement" (collectively, the "Conveyance Agreements") for consideration by the City Council pursuant to which, among other matters, if specified preconditions are satisfied: (1) the City would lease the Property to the Developer; and (2) the Developer would, or would cause with the consent of the City a designee to, develop and operate an affordable housing development on the Property in accordance with one of the SLA Exemption Regulations, California law and subject to the express approval of the City (the "Affordable Development").

I. The Parties acknowledge and agree that this Agreement in itself does not (i) obligate any party to acquire or convey any portion of the Property; (ii) grant the Developer the right to develop the Affordable Development; (iii) obligate the Developer to undertake any activities or pay any costs to develop the Affordable Development, except for the preliminary analysis and negotiations contemplated by this Agreement; or (iv) constitute the approval of a project as defined by the California Environmental Quality Act pursuant to California Public Resources Code Sections 21000 et seq. and California Code of Regulations Sections 15000 et seq. ("CEQA").

Attachment A 6 October 20, 2026 Item 9
3 NOW, THEREFORE, in consideration of the mutual covenants and promises contained in this Agreement and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties mutually agree as follows:

ARTICLE 1.

EXCLUSIVE NEGOTIATIONS RIGHT
Section 1.1 Good Faith Negotiations.
(a) The City and the Developer agree, for the Negotiating Period described in Section 1.2 below, to work cooperatively and in good faith to: (1) make a preliminary feasibility determination; (2) examine the physical and land title conditions of the Property, including an analysis of the existing infrastructure and need for new infrastructure for the Affordable Development, and remediation of any adverse conditions; (3) define the scope of the Affordable Development including the number of units and income targeting goals and the land uses to be included in the Affordable Development; (4) define conceptual planning activities, including preparation of an initial design of the various components of the Affordable Development and a preliminary analysis of land use entitlements needed; (5) analyze the level of environmental review needed to comply with CEQA, and to the extent necessary, the National Environmental Policy Act of 1969, as amended (42 U.S.C. 4321-4347) ("NEPA"); (6) propose the development schedule, and phasing plan if applicable to construct the Affordable Development; (7) complete financial feasibility studies and analyze potential methods of financing for the Affordable Development. (b) During the Negotiating Period (defined in Section 1.2 below), the Parties agree to work cooperatively and in good faith to accomplish the respective tasks outlined in Article 2 and pursuant to the agreed upon schedule of performance. If the Affordable Development is determined to be feasible and desirable by both Parties, the Parties intend to negotiate diligently and in good faith the terms of the Conveyance Agreements. Notwithstanding anything to the contrary contained in this Agreement, the Parties agree and acknowledge that the Conveyance Agreements will separate out the Parties' obligations with regards to the Affordable Development and establish the Developer's rights and obligations to develop and operate the Affordable Development.

Section 1.2 Negotiating Period.
(a) The negotiating period (the "Negotiating Period") under this Agreement shall commence as of the date the Funding Agreement is executed (the "Effective Date") and continue for a period of twelve (12) months, unless extended in accordance with this Section

1.2(b). The parties agree and acknowledge that the Negotiating Period and deadlines in the Schedule (defined in Section 2.1, below) are intended to align with the City's Housing Element Program 3B deadlines.
(b) At the City's sole and absolute discretion, the Negotiating Period may be extended or modified, beyond the extensions described in the preceding sentence only by formal action of the City Council.

Attachment A 7 October 20, 2026 Item 9
4 (c) If, by the expiration of the Negotiating Period (as the Negotiating Period may be extended by operation of the preceding paragraph), the Conveyance Agreements have not been executed by the City and the Developer and are not on an agenda for approval by the City Council, then this Agreement shall terminate and neither party shall have any further rights or obligations under this Agreement. If the Conveyance Agreements are executed by the City and the Developer, this Agreement shall thereupon terminate, and all rights and obligations of the Parties shall be as set forth in the executed Conveyance Agreements.

Section 1.3 Exclusive Negotiations.
(a) During the Negotiating Period (as such Negotiating Period may be extended in accordance with Section 1.2), the City shall not negotiate with any entity for the development or use of the Property, other than the Developer (or an affiliate thereof), regarding development or use of the Property and shall not solicit or entertain bids or proposals to do so, unless required to do so under the Surplus Lands Act (Gov't Code Section 54220-54234, and its implementing guidelines).
(b) During the Negotiating Period, the Developer and City shall negotiate in good faith the scope of the Affordable Development to be developed on the Property.

Section 1.4 Predevelopment Funding Agreement.
(a) Within sixty (60) days after the Effective Date, the Parties shall negotiate a Predevelopment Funding Agreement providing for a City funding of up to Five Hundred Thousand Dollars ($500,000) to fund the Developer’s third-party costs (excluding Developer staff costs) incurred to complete the due diligence tasks required under this Agreement, which the City shall present to the City Council for consideration as soon as reasonably practicable. The City shall approve a predevelopment budget and, thereafter, fund draw requests for costs included in the approved budget or otherwise previously approved in writing by the City. Within thirty (30) days after receiving a complete monthly draw request and supporting documentation, the City shall make payment to Developer as reimbursement. Approval of costs and draw requests shall not be unreasonably withheld, conditioned, or delayed, and reasonable reallocations among approved budget categories shall be permitted upon written approval from the City. Developer shall have no obligation to advance or self-fund approved predevelopment costs before the Predevelopment Funding Agreement becomes effective. All approved costs incurred before the expiration or termination of this Agreement shall remain payable so long as they are consistent with this Agreement and the Predevelopment Funding Agreement.

Section 1.5 Identification of Developer and City Representatives. (a) Developer Designated Representative. The Developer's representative to negotiate the Conveyance Agreements with the City is Frank Gangi, President, or the Developer’s designee. The Developer shall notify the City in writing of any changes to the designated representative.
(b) City Designated Representative. The City's representative to negotiate the Attachment A 8 October 20, 2026 Item 9
5 Conveyance Agreements with the Developer is the City Manager, or the City Manager's designee.

The City shall notify the Developer in writing of any changes to the designated representative.

Section 1.6 Actions by the City and the Developer.
(a) City Actions. Whenever this Agreement calls for or permits the approval, consent, authorization or waiver of the City, the approval, consent, authorization, or waiver of the City Manager shall constitute the approval, consent, authorization, or waiver of the City without further action of the City Council. Nothing shall prevent the City Council from revoking or modifying any authority delegated to the City Manager under this Agreement; any such revocation or modification shall not impact the validity of this Agreement. By approving this Agreement, the City Council has elected to delegate to the City Manager the authority to approve, consent, authorize or waive any of the rights or obligations set forth in this Agreement. The Developer acknowledges that nothing in this Agreement shall limit, waive, or otherwise impair the authority and discretion, as applicable, of: (1) the City's Planning Department, in connection with the review and approval of the proposed construction plans for the Affordable Development, or any use, or proposed use, of the Property; (2) the City's issuance of a building permit; and (3) any other office or department of the City acting in its capacity as a governmental entity, regulatory authority and/or police power.
(b) Developer Actions. Whenever this Agreement calls for or permits the approval, consent, authorization or waiver of the Developer, the approval, consent, authorization, or waiver of Frank Gangi, President, shall constitute the approval, consent, authorization, or waiver of the Developer without further action of the Developer's governing board.

ARTICLE 2.

NEGOTIATION TASKS
Section 2.1 Overview.

To facilitate negotiation of the Conveyance Agreements, the Parties shall use reasonable, good faith efforts to accomplish the tasks set forth in this Article 2 in a timeframe that will support negotiation and execution of mutually acceptable Conveyance Agreements before the expiration of the Negotiating Period and in a manner consistent with the schedule attached hereto as Exhibit B and incorporated as part of this Agreement by this reference (the "Schedule"). Within thirty (30) days after the Effective Date, the Parties shall meet and mutually agree upon responsibilities of the Parties and provide any updates to the Schedule needed to complete the negotiating tasks listed in this Article 2 within the Negotiating Period which shall include, but not be limited to, the dates for obtaining land use entitlements and financing commitments for the Affordable Development, the date for the submittal of construction plans to the City, the date for close of escrow on the Property, and the dates for the commencement and completion of construction of the Affordable Development.

Attachment A 9 October 20, 2026 Item 9
6 Section 2.2 Conceptual Preliminary Site Plan.

After the Predevelopment Funding Agreement becomes effective and within the time set forth in the Schedule, the Developer shall prepare a proposed conceptual development program (the "Preliminary Plan") for the Property that includes: (a) a refinement in the scope of the Affordable Development, including the proposed housing affordability ranges and the nature and duration of expected affordability controls; (b) a proposed development phasing schedule; and (c) a preliminary site plan or similar document. The preliminary site plan may show the general location of the proposed buildings, landscaping, and site improvements; the general massing of any proposed buildings; roadways, parking, and points of ingress and egress; and any other proposed improvements that may be included as part of the Affordable Development.

Section 2.3 Financing and Costs of Development.

Within the time set forth in the Schedule, the Developer shall provide the City, for its review and approval, with a preliminary detailed financial analysis for the Affordable Development containing, among other matters, a development budget and operating proforma (the "Financing Proposal"). The Financing Proposal shall identify the sources of funding for each phase, or component, of the Affordable Development, including but not limited to all proposed sources of debt and equity to be utilized for the Affordable Development. The Financing Proposal must include a 55-year projection of operating revenues, expenditures, and expected rates of return. The financial analysis shall be refined by the Parties during the Negotiating Period, as appropriate, and will be used to evaluate the financial feasibility of the Affordable Development and to assist in the negotiation of terms regarding payment of costs of land and development.

Section 2.4 Planning Approvals.
(a) The Property is located within the California Coastal Zone, east of the shoreline, and does not contain any sensitive coastal resources. The Property is within the City’s Coastal Development Permit (CDP) jurisdiction, and any prospective development on the Property will be subject to approval of a CDP issued by the City in accordance with the City’s Certified Local Coastal Program. The CDP will not be appealable to the California Coastal Commission.

The Developer acknowledges that the Affordable Development that in addition to the CDP, may require discretionary approvals and entitlements from the City (the "Planning Approvals"). During the Negotiating Period (excluding extensions thereto), the City and the Developer will agree on the type of Planning Approvals necessary for development of the Affordable Development, which could potentially include a General Plan amendment, re-zoning, or a tentative map. (b) Application fees associated with the Planning Approvals shall be incurred only after the Predevelopment Funding Agreement becomes effective and only to the extent included in an approved budget or otherwise approved in writing by the Developer and City, it being understood by the parties that all application and plan check fees are the responsibility of the Developer, if and when they become payable and that such fees are an eligible use of City predevelopment funding. The parties acknowledge that the necessary Planning Approvals for the Property will be independent of timing and schedule approval of the Conveyance Agreements related to the Property. Within the time set forth in the Schedule, the Developer and City shall Attachment A 10 October 20, 2026 Item 9
7 determine the necessary Planning Approvals for the Affordable Development, and the Developer shall prepare a proposed schedule for obtaining the necessary Planning Approvals.

Section 2.5 Environmental Review.

During the Negotiating Period and as specified in the Schedule of Performance, the Developer and the City shall agree to a project description for the Affordable Development and the Developer shall prepare or cause to be prepared preliminary plans to facilitate the environmental review process required by CEQA and NEPA (if applicable) for the Affordable Development. The Developer acknowledges that the environmental review process under CEQA and NEPA for the proposed project may involve preparation and consideration of input from interested organizations and individuals; that approval or disapproval of the Affordable Development following completion of the environmental review process is within the discretion of the City; and that the City makes no representation regarding the ability of the Developer to approve the Affordable Development at the conclusion of the environmental review process required by CEQA and NEPA, or regarding the imposition of any mitigation measures as conditions of any approval that may be granted. The City shall generally cooperate to complete any required environmental review. Nothing in this Agreement shall be construed to compel the City to approve or make any particular findings with respect to the environmental review documentation. The City will not be responsible for any direct and indirect costs associated with, or related to, the preparation of the required CEQA and NEPA documentation for the Affordable Development. Preparation of the required CEQA and NEPA documentation is an eligible cost use of predevelopment funds provided to the Developer by the City pursuant to Section 1.4, above.

The City will not be responsible for the payment of any developer fees or costs associated with processing of the draft and final environmental review documents needed for the respective Planning Approvals. Processing of the draft and final environmental review documents is an eligible cost use of predevelopment funds provided to the Developer by the City pursuant to Section 1.4, above. Costs associated with CEQA and NEPA environmental review documentation shall be incurred only after the Predevelopment Funding Agreement becomes effective and only to the extent included in an approved budget or otherwise approved in writing by the Developer and City.

Section 2.6 Due Diligence.

During the Negotiating Period, the Developer shall conduct due diligence activities it deems necessary to provide Developer with sufficient information to determine the feasibility of the Affordable Development on the Property, including but not limited to planning requirements, soils reports, noise study, hazardous materials report, financial feasibility study, infrastructure, and title adequacy, or separation of Affordable Development into phases. (a) Physical Adequacy Determination. The Developer shall have through the end of the Negotiating Period (the "Due Diligence Period") to determine whether a prospective Property is suitable for the Affordable Development, taking into account the geotechnical and soils conditions, the presence or absence of toxic or other hazardous materials, the massing of the proposed development improvements, infrastructure, the planning requirements imposed on projects of this type, and the other environmental and regulatory factors that the Developer deems Attachment A 11 October 20, 2026 Item 9
8 relevant. If, in the Developer's judgment based on such investigations and analyses, any portion of the Property is not suitable for development, the Developer shall notify the City in writing before the expiration of the initial Negotiating Period of its determination (an "Unsuitability Notice").

Upon delivery of an Unsuitability Notice by the Developer, this Agreement shall be terminated without further action of any Party, and thereafter no Party shall have any further duties, obligations, rights, or liabilities under this Agreement. If the Developer does not deliver an Unsuitability Notice during the initial Negotiating Period, then the Property shall be deemed physically suitable for development of the Affordable Development and any executed Conveyance Agreements shall not provide for an additional opportunity for the Developer to determine the physical suitability of the Property or for the Developer to terminate the Conveyance Agreements as a result of purported physical unsuitability. Any Conveyance Agreements shall provide that the Property is to be conveyed to the Developer in its "as-is" condition as of the date Developer is deemed to have waived its rights to send an Unsuitability Notice under this Agreement. (b) Right of Entry. During the Negotiating Period, the City grants to the Developer, its agents and contractors, with proper advance written notice to the City's Designated Representative, the right to enter upon any portion of the Property, to perform the physical adequacy determination described above. The Developer shall indemnify, defend (with counsel reasonably acceptable to the City) and hold harmless the City, and its respective council members, agents, directors, and employees (collectively, the "City Indemnitees") from and against all claims, damages, losses, and expenses, of every kind, nature and description (including but not limited to, attorney's fees, expert fees, and costs of suit), directly or indirectly arising from, or in any way, related to, the activities of Developer or its contractors, subcontractors, agents, employees, licensees, invitees or guests on or concerning the prospective site(s) during the term of this Agreement; by reason of death, injury, property damage or any claim arising from the alleged violation of any state or federal law, statute or regulation. Provided, however, that in no event shall the Developer be obligated to defend or indemnify the City Indemnitees with respect to the gross negligence or willful misconduct of the City Indemnitees. This Section 2.6(c) shall survive termination of this Agreement. Developer understands and agrees that any such right to enter shall be limited to the Property. Prior to exercising the right of Entry under this Section, the Developer must provide City with evidence of insurance matching the requirements set forth in the attached Exhibit C, incorporated herein by this reference.
(c) Title Adequacy. The City has provided the Developer, and shortly after the Effective Date may provide any updates, of a preliminary title report issued by Chicago Title Company (the "Report") for the Property. If the Developer objects to any exception appearing on the Report or should any title exception arise after the date of the Report, the Developer may object to such exception, provided Developer makes such objection in writing to the City before 5 P.M. on the day which is ten (10) business days prior to the end of the Negotiating Period. If the Developer objects to any exception to title, the City, within five (5) business days of receipt of Developer 's objection, shall notify Developer in writing whether City elects to: (1) cause the exception to be removed of record; (2) obtain a commitment from the title company for an appropriate endorsement to the policy of title insurance to be issued to the Developer, insuring against the objectionable exception; or (3) terminate this Agreement, unless the Developer elects to take title subject to such exception. If any Party elects to terminate this Agreement pursuant to this Section, no Party shall thereafter have any obligations to or rights against the others hereunder.

Attachment A 12 October 20, 2026 Item 9
9 If the Developer fails to provide any notification to the City regarding this matter before expiration of the time period set forth in this Section 2.6, the condition set forth in this Section shall be deemed satisfied.
(d) Utilities. During the Negotiating Period, the Developer and City shall consult with the utility companies to determine preliminarily if existing utility facilities require expansion, relocation or undergrounding in connection with the prospective Affordable Development.

Section 2.7 Reports.
(a) Promptly following execution of this Agreement with respect to documents then in its possession or under its reasonable control, the City shall provide the Developer with copies of all non-confidential or nonproprietary reports, studies, analyses, official correspondence and similar documents related to the Property (collectively, "Disclosure Documents"). (b) The Developer shall provide the City copies of all non-confidential or nonproprietary reports, studies, analyses, official correspondence and similar documents related to the Property prepared or commissioned by the Developer with respect to this Agreement and the Affordable Development.
(c) While desiring to preserve its rights with respect to treatment of certain information on a confidential or proprietary basis, the Developer acknowledges that the City will need sufficient, detailed information about the proposed Affordable Development (including, without limitation the financial information described in Section 2.2) to make informed decisions about the content and approval of the Conveyance Agreements. The City will work with the Developer to maintain the confidentiality of proprietary information, or any information protected by the attorney client privilege or the attorney work product doctrine, subject to the requirements imposed on the City by the Public Records Act (Government Code Section 6253 et seq.). The Developer acknowledges that the City may share information provided by the Developer of a financial and potential proprietary nature with third party consultants and City council members as part of the negotiation and decision making process. If this Agreement is terminated without the execution of the Conveyance Agreements, the City shall return to the Developer any proprietary information submitted by the Developer under this Agreement.

Section 2.8 Organizational Documents.

Concurrent with execution of this Agreement, the Developer shall provide the City with copies of its organizational documents evidencing that the Developer exists and is in good standing and is authorized to conduct business in California, and to perform its obligations under this Agreement and the Conveyance Agreements.

Section 2.9 Compliance with Relocation Requirements.

City hereby represents that there are no tenants on the Property. To the extent required by any federal or state relocation law (including, but not limited to, California Government Code 7260 Attachment A 13 October 20, 2026 Item 9
10 et seq), the Developer shall comply with all applicable requirements of such laws, including, but not limited to, delivering any applicable notices to the existing occupants of the Property, and the preparation of any relocation plan regarding the relocation of any existing occupants. The Developer shall defend and hold the City Indemnitees harmless from any claims under federal or state relocation laws.

Section 2.10 Community Outreach.

At the appropriate time or times during the Negotiating Period, the Developer shall affirmatively outreach to the local community to obtain and consider community input regarding the design and use of the Affordable Development. Included in the Schedule, the Developer shall submit to the City a proposed community outreach plan and schedule. The Developer shall hold community meetings consistent with the plan approved by City pursuant to this Section on the dates specified in the Schedule approved by the City pursuant to Section 2.1.

ARTICLE 3.

GENERAL PROVISIONS
Section 3.1 Limitation on Effect of Agreement.

This Agreement shall not obligate either the City or the Developer to enter into the Conveyance Agreements for the Affordable Development or any component thereof. Execution of this Agreement by the City is an agreement to conduct a period of exclusive negotiations in accordance with the terms hereof, reserving for subsequent City Council action the final discretion and approval regarding the execution of the Conveyance Agreements and all proceedings and decisions in connection therewith. Any the Conveyance Agreements resulting from negotiations pursuant to this Agreement shall become effective only if and after such Conveyance Agreements have been considered and approved by the City Council, following conduct of all legally required procedures, and executed by duly authorized representatives of the City and the Developer.

Section 3.2 Notices.

Formal notices, demands and communications between the City and the Developer shall be sufficiently given if, and shall not be deemed given unless, dispatched by certified mail, postage prepaid, return receipt requested, or sent by express delivery or overnight courier service, to the office of the Parties shown as follows, or such other address as the Parties may designate in writing from time to time:

Attachment A 14 October 20, 2026 Item 9
11 Developer: Gangi Development
229 East Palm Ave.

Burbank, CA 91502
Attn: Frank Gangi, President
CITY: City of Del Mar
1050 Camino Del Mar
Del Mar, CA 92104
Attn: Ashley Jones, City Manager
Devaney, Pate, Morris & Cameron, LLP
402 W. Broadway, Suite 1300
San Diego, CA 92101
Attn: Christina Cameron, City Attorney
With copies to:

Goldfarb & Lipman LLP
Attention: Rafael Yaquian
1300 Clay Street, 11th Floor
Oakland, CA 94612
Such written notices, demands and communications shall be effective on the date shown on the delivery receipt as the date delivered or the date on which delivery was refused.

Section 3.3 Waiver of Lis Pendens.

It is expressly understood and agreed by the Parties that no lis pendens shall be filed against any portion of the Property with respect to this Agreement or any dispute or act arising from it.

Section 3.4 Costs and Expenses.

Except as provided in the Predevelopment Funding Agreement, each party shall be responsible for its own costs and expenses in connection with any activities and negotiations undertaken in connection with this Agreement, and the performance of each party's obligations under this Agreement. Notwithstanding anything to the contrary, the City may at its discretion provide predevelopment funding pursuant to Section 1.4, above.

Section 3.5 No Commissions.

The City shall not be liable for any real estate commissions or brokerage fees that may arise from this Agreement or any Conveyance Agreements resulting from this Agreement. The City represents that it has engaged no broker, agent, or finder in connection with this transaction, and the Developer shall defend and hold the City Indemnitees harmless from any claims by any broker, agent or finder retained by the Developer.

Attachment A 15 October 20, 2026 Item 9
12 Section 3.6 Nonliability of Agency Officials and Employees.

No council members, officials, employees, representative, member agents or contractors of the City shall be personally liable to the Developer in the event of any default or breach by City or for any amount, which may become due to Developer or on any obligations under the terms of the Agreement.

Section 3.7 Defaults and Remedies.
(a) Default. Failure by either party to negotiate in good faith as provided in this Agreement shall constitute an event of default under this Agreement. Additionally, failure of the Parties to perform their respective obligations under this Agreement shall constitute an event of default under this Agreement. Upon an event of default, the non-defaulting party shall give written notice of a default to the defaulting party, specifying the nature of the default and the required action to cure the default. If a default remains uncured thirty (30) calendar days after receipt by the defaulting party of such notice, the non-defaulting party may exercise the remedies set forth in subsection (b).
(b) Remedies. In the event of an uncured default by either party, the nondefaulting party's sole remedy shall be to terminate this Agreement. Following such termination neither party shall have any further right, remedy, or obligation under this Agreement. (c) Except as expressly provided in this Agreement, neither party shall have any liability to the other party for damages or otherwise for any default, nor shall either party have any other claims with respect to performance under this Agreement. Each party specifically waives and releases any such rights or claims it may otherwise have at law or in equity.

Section 3.8 Discrimination.

Developer shall not discriminate against any person related to the performance under this Agreement because of race, color, religious creed, national origin, physical disability, mental disability, medical condition, marital status, sexual orientation, or sex.

Section 3.9 Business License.

Developer shall apply for and pay the business tax and registration tax for a business license, in accordance with the City Code.

Section 3.10 Attorneys' Fees.

Subject to the indemnification requirements set forth in Sections 2.6, 2.9, 3.5 and 3.11, in the event any action, suit, or proceeding is brought relating to the enforcement of, or the declaration on any right or obligation pursuant to the Agreement, or as a result on any alleged breach of any provision of this Agreement, each party shall bear its own costs and attorney fees, regardless of which is the prevailing party.

Attachment A 16 October 20, 2026 Item 9
13 Section 3.11 Indemnification.

To the fullest extent permitted by law, Developer shall defend, indemnify, and hold harmless the City Indemnitees from and against all claims, damages, losses, and expenses, of every kind, nature and description (including, but not limited to, attorney's fees, expert fees, and costs of suit), directly or indirectly arising from, or in any way related to the performance or nonperformance of this Agreement, by reason of death, injury, property damage, or any claim arising from the alleged violation of any state or federal law, statute or regulation, (including but not limited to, CEQA and NEPA). Provided, however, that in no event shall Developer be obligated to defend or indemnify the City Indemnitees with respect to the gross negligence or willful misconduct of the City Indemnitees. Developer’s indemnification obligations shall not be limited by the insurance provisions of this Agreement. The Parties expressly agree that any payment, attorney's fees, costs or expense City incurs or makes to or on behalf of an injured employee under the City's self-administered workers' compensation is included as a loss, expense, or cost for the purposes of this section, and that this section will survive the expiration or early termination of this Agreement.

This indemnity is in addition to any other rights or remedies which City may have under the law or this Agreement. In the event of any claim or demand made against any party which is entitled to be indemnified hereunder, City may, at its sole discretion, reserve, retain or apply any monies due to Consultant under this Agreement for the purpose of resolving such claims; provided however, that City may release such funds if Developer provides City with reasonable assurances of protection of the City's interest. The City shall, in its sole discretion determine whether such assurances are reasonable.

Developer agrees that its duty to defend arises upon an allegation of liability based upon the performance of services under this Agreement by Developer, its officers, agents, representatives, employees, sub-consultants, or anyone for whom Developer is liable and that an adjudication of Developer’s liability is not a condition precedent to Developer’s duty to defend Section 3.12 Governing Law; Venue.

This Agreement shall be governed by and construed in accordance with the laws of the State of California. San Diego County shall be the proper venue and have jurisdiction for the resolution of all actions arising from this Agreement.

Section 3.13 Entire Agreement.

This Agreement constitutes the entire agreement of the Parties regarding the subject matters of this Agreement.

Section 3.14 Interpretation.

The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. The part and Attachment A 17 October 20, 2026 Item 9
14 paragraph headings used in this Agreement are for purposes of convenience only and shall not be construed to limit or extend the meaning of this Agreement.

Section 3.15 Counterparts.

This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same agreement.

Section 3.16 No Right to Assignment.

The Developer may not assign, subcontract, or transfer all or any part of this Agreement without the express written consent of the City, which consent may be granted or withheld in the City's sole and absolute discretion and any such attempted transfer or assignment without the prior written consent of City shall be void. The restriction on transfer in this section shall not be used to limit the ability of the Developer to designate the right to acquire the Property under the Conveyance Agreements to an affiliate of Developer provided that: (a) Such affiliate is controlled by one or more principals of Developer, and such principals collectively hold at least a majority of the ownership interests in the affiliate; (b) Developer shall not be released from any liability or obligation under his Agreement; and (c) Developer shall remain the lead negotiator with the City with respect to the Conveyance Agreements and Affordable Development. A consent by the City to one assignment shall not be deemed to be a consent to any subsequent assignment.

Section 3.17 No Third-Party Beneficiaries.

This Agreement is made and entered into solely for the benefit of the City and the Developer and no other person shall have any right of action under or by reason of this Agreement.

Section 3.18 Developer Not an Agent.

Nothing in this Agreement shall be deemed to appoint Developer as an agent for or representative of the City, and Developer is not authorized to act on behalf of the City with respect to any matters except those specifically set forth in this Agreement. The City shall not have any liability or duty to any person, firm, corporation, or governmental body for any act of omission or commission, liability, or obligation of Developer, whether arising from actions under this Agreement or otherwise.

Section 3.19 Severability.

In the event any section or portion of this Agreement shall be held, found, or determined to be unenforceable or invalid for any reason whatsoever, the remaining provisions shall remain in effect, and the Parties shall take further actions as may be reasonably necessary and available.

Section 3.20 Time is of the Essence.

Time is of the essence for each of the Parties' obligations under this Agreement.

Attachment A 18 October 20, 2026 Item 9
15 Section 3.21 Confidentiality.

Developer acknowledges and agrees that the City is a public entity with a responsibility and, in many cases, legal obligation to conduct its business in a manner open and available to the public. Accordingly, any information provided by the Developer to the City with respect to the Property, the Affordable Development or Developer may be disclosed to the public either purposely, inadvertently, or as a result of a public demand or order. With respect to any information provided that the Developer reasonably deems and identifies in writing as proprietary and confidential in nature, the City agrees to exercise their best efforts to keep such information confidential to the extent allowed by law.
[Signature Page Follows]
Attachment A 19 October 20, 2026 Item 9
S-1
IN WITNESS WHEREOF, this Agreement has been executed by the Parties on the date first above written.

DEVELOPER:

GANGI DEVELOPMENT, a California corporation
BY: _______________________________
Frank Gangi, President
CITY:

BY: _________________________________
Ashley Jones, City Manager
APPROVED AS TO LEGAL FORM:

SPECIAL COUNSEL
BY: _________________________________
Rafael Yaquian, Goldfarb & Lipman LLP
Attachment A 20 October 20, 2026 Item 9
A-1

EXHIBIT A

LEGAL DESCRIPTION OF PROPERTY
For APN/Parcel ID(s): 300-093-17-00
The Southerly 43.38 feet of Lot 9 and the Southerly 43.38 feet of the Westerly 21.00 feet of Lot 10 in Block 26 of Del Mar, in the City of Del Mar, County of San Diego, State of California, filed in the Office of the County Recorder of San Diego County, October 7, 1885.

Also known as Parcel 3 of City of Del Mar Certificate of Compliance COC16-001, recorded April 13, 2016 as Document No. 2016-0169691 of Official Records of said San Diego County.

Attachment A 21 October 20, 2026 Item 9
B-1

EXHIBIT B

SCHEDULE
Obligation/Duty Date of Completion
Effective Date Date of City Council authorization
(October 20, 2026).

Developer to provide City with Organizational
Documents.

Concurrent with execution of the
Agreement.

Commencement of Negotiating Period Effective Date.

City to cause Title Company to provide Developer
preliminary title report for Property.

Deemed completed.

Predevelopment Funding Agreement Date of City Council authorization (October 20, 2026).

Developer prepares a proposed a conceptual
Preliminary Site Plan.

No later than March 16, 2027, subject
to extensions for delays in execution
of the Predevelopment Funding
Agreement.

Developer and City consult with utility companies
related to capacity/accessibility for Property.

No later than March 16, 2027.

City to provide Disclosure Documents No later than November 30, 2026 Developer to conduct physical adequacy
determination.

During Due Diligence period, but
subject to delivery of Insurance
required under Section 2.6(b) No
later than March 16, 2027.

If applicable, Developer to provide Unsuitability
Notice
Prior to the end of Negotiating
Period.

Developer to conduct title adequacy determination. During Due Diligence Period Developer to provide written Objection of Title, if any Before 5 P.M. on the day which is ten (10) business days prior to January
31, 2027
Developer conducts Community Outreach Meetings No later than March 16, 2027 and
No later than May 11, 2027.

Developer to provide Financing Proposal No later than March 16, 2027.

Developer and City outline the Planning Approval
timeline.

No later than March 16, 2027.

Developer commences and completes the applicable
CEQA/NEPA review process
Prior to the termination of the
Negotiating Period, subject to
extensions for delays in consultant
performance, City review, delivery of
requested information or other delays
outside Developer's reasonable
control.

Completion of Negotiating Period Twelve (12) months from Effective Attachment A 22 October 20, 2026 Item 9
B-2
Date, or October 20, 2027, unless
extended in accordance with this
Section 1.2(b).

Attachment A 23 October 20, 2026 Item 9
C-1

EXHIBIT C

CITY INSURANCE REQUIREMENTS
(Required to exercise Right of Entry)

INSURANCE

1.1 Developer shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Developer, their agents, representatives, employees or subcontractors. Insurance shall be placed with insurers with a current A.M. Best’s rating of no less than “A” and “VII” and are admitted to conduct business in the State of California, unless otherwise approved in writing by the City’s Risk Manager.

1.2 Developer’s liabilities, including but not limited to Developer’s indemnity obligations, under Sections 2.6 and 3.11 of this Agreement, shall not be deemed limited in any way to the insurance coverage required herein. All policies of insurance required hereunder must provide that the City is entitled to thirty (30) days prior written notice (ten (10) days for cancellation due to non-payment of premium) of cancellation or non-renewal of the policy or policies. Maintenance of specified insurance coverage is a material element of this Agreement.

1.3 Types and Amounts Required. Developer shall maintain, at minimum, the following insurance coverage for the duration of this Agreement:

1.3.1 Commercial General Liability (CGL). Insurance written on an ISO Occurrence form CG 00 01 07 98 or equivalent providing coverage at least as broad which shall cover liability arising from any and all personal injury or property damage in the amount of $1,000,000 per occurrence and subject to an annual aggregate of $2,000,000. There shall be no endorsement or modification of the CGL limiting the scope of coverage for either insured vs. insured claims or contractual liability. All defense costs shall be outside the limits of the policy.

1.3.2 Commercial Automobile Liability. For all of the Developer’s automobiles including owned, hired and non-owned automobiles, automobile insurance written on an ISO form CA 00 01 12 90 or a later version of this form or an equivalent form providing coverage at least as broad for bodily injury and property damage for a combined single limit of $300,000 per occurrence. Insurance certificate shall reflect coverage for any automobile (any auto).

1.3.3 Workers' Compensation. For all of the Developer’s employees who are subject to this Agreement and to the extent required by applicable state or federal law, a Workers' Compensation policy providing at minimum $1,000,000 employers' liability coverage. The Consultant shall provide an endorsement that the insurer waives the right of Attachment A 24 October 20, 2026 Item 9
C-2
subrogation against the City and its respective elected officials, officers, employees, agents and representatives.

1.3.4 Consulting Liability. Consulting liability (errors and omissions) coverage with a limit of $1,000,000 per claim and $2,000,000 annual aggregate. The Developer shall ensure both that (1) the policy retroactive date is on or before the date of commencement of the Scope of Services; and (2) the policy will be maintained in force for a period of three years after substantial completion of the Scope of Services or termination of this Agreement whichever occurs last. The Developer agrees that for the time period defined above, there will be no changes or endorsements to the policy that increase the City's exposure to loss. All defense costs shall be outside the limits of the policy.

1.4 Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions are the responsibility of the Developer and must be declared to and approved by the City. At the option of the City, either (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees, and volunteers, or (2) the Developer shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses.

1.5 Additional Required Provisions. The commercial general liability and automobile liability policies shall contain, or be endorsed to contain, the following provisions:

1.5.1 The City, its officers, officials, employees, and representatives shall be named as additional insureds. The City's Additional Insured status must be reflected on additional insured endorsement form which shall be submitted to the City.

1.5.2 The policies are primary and non-contributory to any insurance that may be carried by the City, as reflected in an endorsement which shall be submitted to the City.

1.6 Verification of Coverage. Developer shall furnish the City with original certificates and amendatory endorsements affecting coverage required by this Section 11.

The endorsement should be on forms provided by the City or on other than the City’s forms provided those endorsements conform to City requirements. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications at any time.

Attachment A 25 October 20, 2026 Item 9
1 PREDEVELOPMENT FUNDING AGREEMENT

BETWEEN

THE CITY OF DEL MAR
AND

GANGI DEVELOPMENT
(10th Street Property)
THIS PREDEVELOPMENT FUNDING AGREEMENT (the "Agreement") is made and entered into as of October 20, 2026, (the "Effective Date") by and between the City of Del Mar, a California charter city (the "City"), and Gangi Development, a California corporation (the "Developer").

RECITALS
A. The City owns an approximately 0.10 acres (4,356 square feet) vacant, developable property located at 10th Street within the City of Del Mar Civic Center complex (Assessor's Parcel Number, APN 300-093-17-00), as further described in the legal description attached hereto as Exhibit A, incorporated herein by this reference (the "Property").

B. The City and the Developer are parties to that certain Exclusive Negotiating Rights Agreement, dated as of October 20, 2026, as such may be amended from time to time (the "ENRA") to allow the Developer to conduct title and physical due diligence and explore the potential for the development of affordable housing sufficient to meet the terms of one of the SLA Exemption Regulations on the Property (the "Project").

C. The City has agreed to provide predevelopment funding in the amount of up to Five Hundred Thousand Dollars ($500,000) (the "Grant") to fund approved initial predevelopment expenses related to the Project consistent with the terms of the ENRA.

D. The Developer shall utilize the Grant to fund certain feasibility studies, and other specified predevelopment tasks and activities for the Project, all as more particularly set forth in this Agreement.

E. Until such feasibility studies and the other predevelopment activities are completed, it is not possible to provide meaningful information for environmental assessment of the proposed Project in accordance with the provisions of the California Environmental Quality Act (Public Resources Code Sections 21000 et seq.) ("CEQA"). It is the intention of the parties to use the feasibility studies, and other predevelopment work products to be funded through the Grant to prepare the necessary environmental assessment under CEQA prior to the consideration by the City of any discretionary actions necessary for the Project. The Grant is exempt from the requirements of CEQA pursuant to Section 15262 of the CEQA Guidelines.

NOW, THEREFORE, for and in consideration of the foregoing recitals, which are incorporated herein by this reference, and in reliance upon the foregoing and upon the covenants, agreements, representations and warranties herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the City and the Developer agree as follows:

Attachment B 26 October 20, 2026 Item 9
2 ARTICLE 1.

DEFINITIONS; EXHIBITS
Section 1.1 Definitions. The following capitalized terms have the meanings and content set forth in this section wherever used in this Agreement, attached Exhibits, or documents incorporated into this Agreement by reference.
(a) "Assignment of Work Product" means the Assignment of Plans, Specifications, and Work Product to the City under Section 2.4. (b) “Budget” shall have the meaning set forth in Section 2.3(a). (c) "City Manager" shall mean the City Manager of the City. (d) "Date of Disbursement" means the date on which the City makes the initial disbursement of Grant proceeds to the Developer under this Agreement. (e) "Deliverables" shall mean any documents, reports, drawings, or work product resulting from predevelopment activities in the approved project Budget funded with Grant proceeds.
(f) "Event of Default" shall have the meaning set forth in Section 6.1 below. (g) "Feasibility Report" shall have the meaning set forth in Section 2.3 below. (h) "Hazardous Materials" shall have the meaning set forth in Section 4.4 below. (i) "Hazardous Materials Claim" shall have the meaning set forth in Section 4.4 below.
(j) "Hazardous Materials Law" shall have the meaning set forth in Section 4.4 below.
(k) "Grant " shall have the meaning set forth in Recital C. above. (l) "Grant Documents" mean collectively this Agreement, the Assignment of Work Product, the ENRA and related documents as they may be amended, modified, or restated from time to time, along with all Exhibits and attachments to these documents. (m) “Official Records” means the official records of San Diego County. (n) “Project” shall have the meaning set forth in Recital B. (o) “Term” means the period beginning on the Effective Date and ending on the date that is Two (2) years after the Effective Date, unless sooner terminated. (p) “Transfer” shall have the meaning set forth in Section 4.6 below.

Attachment B 27 October 20, 2026 Item 9
3 Section 1.2 Exhibits. The following Exhibits are attached to this Agreement and incorporated into this Agreement by this reference:

Exhibit A: Legal Description of the Property
Exhibit B: Budget
Exhibit C: Scope of Work
Exhibit D: Insurance Requirements
ARTICLE 2.

GRANT
Section 2.1 Amount and Nature of Grant. On and subject to the terms of this Agreement, the City awards and agrees to disburse to Developer a Grant of up to Five Hundred Thousand Dollars ($500,000) solely for eligible costs included in the approved Budget. The Grant is financial assistance for the stated public purposes and is not a loan, recoverable advance, or investment. Properly used Grant funds are earned as eligible costs are incurred and are not repayable, whether or not the Project is feasible, receives approvals, obtains financing, proceeds to construction, or is completed.

Section 2.2 Interest. No interest shall accrue on the Grant.

Section 2.3 Use of Grant Funds.
(a) Grant Funds. The Developer shall use the Grant funds to prepare and complete a feasibility report for an affordable housing Project that can feasibly be developed on the Property (the "Feasibility Report") in a form reasonably acceptable to the City, and to conduct only the predevelopment and entitlement activities listed as eligible uses under the project budget attached here as Exhibit B and incorporated herein by this reference (the "Budget"). The Feasibility Report may include: general development proposal, conceptual description of the Project, and proposed financing plan for the Project.
(b) Use Prohibition. The Developer shall not use the Grant funds for any purpose not detailed in subsection (a) above without the prior the written consent of the City. (c) Grant Conditions, Work Product. As a condition to the Grant, Developer agrees to assign and transfer to the City all of Developer’s rights and interests in the Deliverables and Work Product, as defined in the Assignment of Work Product, excluding privileged information and proprietary information not funded with Grant proceeds. Developer shall obtain from its consultants, to the extent commercially reasonable, the rights necessary for the City to use Grant-funded Deliverables for purposes related to the Property and Project.

Section 2.4 Conditions Precedent to Disbursement of the Grant. The City shall not be obligated to make any disbursements of the Grant proceeds or take any other action under the Grant Documents unless all the following conditions precedent are satisfied:
(a) There exists no default nor any act, failure, omission or condition that, with the giving of notice or the passage of time or both would constitute an Event of Default under this Agreement; and
Attachment B 28 October 20, 2026 Item 9
4 (b) There exists no material adverse change in the financial condition of Developer from that shown by the financial statements and other data and information furnished by Developer to the City prior to the Effective Date; and
The Developer has executed and delivered to the City the appropriate Grant Documents and any other instruments, and policies required under the Loan Documents; and (c) The Developer has delivered to the City evidence of insurance coverage meeting the requirements of Section 3.8(b) and Exhibit D; and (d) The draw request is consistent with the Budget; and (e) The City has received a written draw request from Developer, including certification that all conditions precedent to disbursement continue to be satisfied, and setting forth the proposed uses of funds consistent with the Budget, the amount of funds needed in respect thereof, a copy of the bill or invoice covering a cost incurred, and proof of payment for the bill or invoice. When a disbursement is requested to pay any person or entity authorized to file a lien against the Property pursuant to the California Civil Code, then, upon request of the City, the written request for funds must be accompanied by lien releases, which may be conditioned upon payment, reasonably acceptable to the City. Within thirty (30) days after receipt of a complete draw request and supporting documentation, the City shall pay approved amounts. Within ten (10) business days after receipt, the City shall identify with reasonable specificity any missing documentation or disputed item. The City shall pay undisputed approved items within the original thirty (30)-day period. Reasonable reallocations among approved Budget categories may be made only with the prior written approval of the City Manager. Approved costs incurred before expiration or termination shall remain eligible for payment, subject to the Budget, availability of Grant funds, and all other requirements of this Agreement.

Section 2.5 Return of Improperly Used Grant Funds. The City may recover any disbursed Grant amount established to have been used for an unauthorized expenditure, charged more than once, unsupported by required documentation, or obtained through fraud, intentional misappropriation, or material misrepresentation. Before recovery, the City shall provide written notice identifying the expenditure and factual basis and shall allow Developer at least thirty (30) days to provide substantiation, correct an accounting error, obtain approval of a reasonable Budget adjustment, or return an undisputed amount. Recovery shall be limited to the affected amount and shall not make other properly used Grant funds repayable.

Section 2.6 Termination of Agreement for Infeasibility. This Agreement may be terminated at any time during the Term in the City’s or Developer’s discretion, subject to the requirements of Section 2.7 below, if: (a) the City or Developer determines that the Project as contemplated herein is infeasible based on the information set forth in the Deliverables, irrespective of any possible modifications that may be agreed to by the City; or (b) the City or Developer elects not to approve or otherwise proceed with the Project.

Attachment B 29 October 20, 2026 Item 9
5 Section 2.7 Grant Closeout; Survival of Payment Rights. (a) Within sixty (60) days after expiration or termination pursuant to Section

2.6, Developer shall submit a project-specific closeout statement identifying Grant disbursements, eligible costs paid or outstanding, approved commitments, cancellation costs, and all funded Deliverables required by this Agreement. The City shall identify any material closeout deficiency or disputed expenditure with reasonable specificity and supporting records within thirty (30) days after receipt. Developer shall cure any deficiency or return any amount required under Section 2.6.

The City shall pay undisputed eligible costs that were properly incurred before expiration or termination and are supported by the approved Budget and required documentation within the time required by Section 2.5 and shall not delay those payments pending resolution of other items. (b) Developer has taken all actions reasonably necessary to implement the Assignment of Work Product and has delivered the Deliverables to the City; provided that, if the City terminates this Agreement pursuant to Section 2.4 above before October 31, 2027, Developer shall be required to deliver only those Deliverables completed as of the termination date. After resolution of the closeout items and any return required under Section 2.3, the City shall confirm Grant closeout in writing. Failure to issue that confirmation shall not create a debt or impair Developer’s accrued payment rights.

Section 2.8 Non-Recourse. No shareholder, principal, officer, director, employee, or affiliate of Developer shall provide a guarantee or incur personal liability merely by reason of this Agreement or its relationship with Developer. Developer's obligation to return Grant funds is limited to Section 2.6; no default shall accelerate or make the entire Grant repayable. Developer remains responsible for its express indemnity obligations only within their stated scope and for proven actual direct losses caused by its fraud, intentional misappropriation, or willful misrepresentation, without duplicating recovery under Section 2.6. Ordinary breach, inability to complete discontinued work, inability to obtain rights beyond an approved consultant contract, or a failure of the Project to proceed shall not create liability for repayment of properly used funds. All remedies, withholding, and offset rights are subject to Sections 2.6 through 2.9.

ARTICLE 3.

DEVELOPER OBLIGATIONS
Section 3.1 Predevelopment Tasks and Schedule. The Developer shall perform the predevelopment activities and tasks listed in the Scope of Work, attached hereto as Exhibit C, incorporated herein by this reference, among others, with the proceeds of the Grant. The tasks described below shall be completed no later than the time specified in the Schedule. (a) Studies. The Developer shall provide the City with the Deliverables which shall be in a form reasonably acceptable to the City. The City shall identify any material deficiencies in a submitted Deliverable within fifteen (15) business days and allow a reasonable opportunity to address them. Acceptance shall not be withheld solely because a Deliverable supports an infeasibility conclusion.
(b) Reports. Upon reasonable notice, as from time to time requested by the City, the Developer shall submit to the City a written progress report advising the City on progress made and next steps to be taken by the Developer in the performance of the predevelopment tasks.

Attachment B 30 October 20, 2026 Item 9
6 (c) Compliance with Laws. Developer shall cause all work performed in connection with this Agreement by Developer, its affiliates, contractors, subcontractors, agents, employees, and representatives to be performed in compliance with: (i) all applicable laws, ordinances, rules and regulations of federal, state, county or municipal governments or agencies now in force or that may be enacted hereafter, including, without limitation, and to the extent applicable, the prevailing wage provisions of the federal Davis-Bacon Act and implementing rules and regulations, and state prevailing wages pursuant to Labor Code Section 1770 et seq., and the regulations pursuant thereto; and (ii) all directions, rules and regulations of any fire marshal, health officer, building inspector, or other officer of every governmental agency now having or hereafter acquiring jurisdiction.
(d) The work shall proceed only after procurement of each permit, license, or other authorization that may be required by any governmental agency having jurisdiction, and Borrower shall be responsible to the City for the procurement and maintenance thereof, as may be required of Borrower and all entities engaged in work on the Property.

Section 3.2 Compliance with Prevailing Wage. California Labor Code. (a) To the extent required by applicable law for activities funded using Grant funds, the Developer shall and shall cause the contractor (if any) and subcontractors (if any) to pay prevailing wages for work on the Property as those wages are determined pursuant to Labor Code Sections 1720 et seq., to employ apprentices as required by Labor Code Sections 1777.5 et seq., and the implementing regulations of the Department of Industrial Relations (the "DIR") and if required by the City, to submit weekly payroll reports to the City. The Developer shall and shall cause the contractor and subcontractors to comply with the other applicable provisions of Labor Code Sections 1720 et seq., 1777.5 et seq., and implementing regulations of the DIR. The Developer shall and shall cause the contractor and subcontractors to keep and retain such records as are necessary to determine if such prevailing wages have been paid as required pursuant to Labor Code Sections 1720 et seq., and apprentices have been employed are required by Labor Code Sections 1777.5 et seq. The Developer shall cause the contractor and subcontractors to instruct any sub-tier subcontractors of the prevailing wage responsibility. Copies of the currently applicable current per diem prevailing wages are available from DIR. During any construction on the Property, Developer shall or shall cause the contractor to post at the Property the applicable prevailing rates of per diem wages. The Developer shall and shall cause the general contractor and subcontractors to review the required wage decisions and request from the City any additional classifications not included in the wage decision. The Developer shall cause its respective contractors and subcontractors to be registered as set forth in Labor Code Section 1725.5. In addition, the Developer shall cause its respective contractors and subcontractors to do all the following:
(1) All calls for bids, bidding materials and the construction contract documents for the proposed work must specify that:
(A) No contractor or subcontractor may be listed on a bid proposal nor be awarded a contract for the proposed work unless registered with the DIR pursuant to Labor Code Section 1725.5.

Attachment B 31 October 20, 2026 Item 9
7 (B) The proposed work is subject to compliance monitoring and enforcement by DIR.
(2) The contractor is required to provide the City all information required by Labor Code Section 1773.3 as set forth in the DIR's online form PWC-100 within 2 days of the award of the contract (https://www.dir.ca.gov/pwc100ext/). (3) The contractor shall cause its respective contractors to post job site notices, as prescribed by regulation by the DIR.
(4) The contractor shall cause its respective contractors to furnish payroll records required by Labor Code Section 1776 directly to the Labor Commissioner, at least monthly in the electronic format prescribed by the Labor Commissioner. (b) Indemnity. The requirements set forth above shall only apply to the extent the Developer is subject to the California Labor Code during the Term; provided, however, the Developer shall indemnify, hold harmless and defend (with counsel reasonably acceptable to the City) the City against any claim for damages, compensation, fines, penalties or other amounts arising out of the failure or alleged failure of any person or entity (including Developer, its contractor and subcontractors) to pay prevailing wages as determined pursuant to Labor Code Sections 1720 et seq., to employ apprentices pursuant to Labor Code Sections 1777.5 et seq., to meet the conditions of Section 1771.4 of the Labor Code as set forth above, and implementing regulations of the DIR or to comply with the other applicable provisions of Labor Code Sections 1720 et seq., 1777.5 et seq., and the implementing regulations of the DIR and any City prevailing wage requirements in connection with any work undertaken by or on behalf of Developer in connection with the Property or this Agreement. The Developer’s obligation set forth herein shall survive expiration or termination solely as to covered acts during the Term. This indemnity excludes losses attributable to the City's negligence or willful misconduct.

Section 3.3 Equal Opportunity. During the Term, there shall be no discrimination on the basis of race, color, creed, religion, age, sex, sexual orientation, marital status, national origin, ancestry, or disability in the hiring, firing, promoting, or demoting of any person engaged in the predevelopment activities funded by the Grant.

Section 3.4 Minority and Women-Owned Contractors. Consistent with state and federal laws and regulations, Developer will use its best efforts to afford minority-owned and womenowned business enterprises the maximum practicable opportunity to participate in the predevelopment activities funded by the Grant. Developer shall, at a minimum, notify applicable minority-owned and women-owned business firms located in the City of Del Mar of bid opportunities for the predevelopment activities funded by the Grant. Documentation of such notifications shall be maintained by Developer and available to the City as requested. Upon request by Developer, the City shall assist Developer in identifying such minority-owned and womenowned business firms located in the City of Del Mar.

Section 3.5 Mechanics Liens, Stop Notices, and Notices of Completion. (a) If any claim of lien is filed against the Property or a stop notice affecting the Grant is served on the City or any other lender or other third party due to or in connection with Attachment B 32 October 20, 2026 Item 9
8 Developer’s activities under this Agreement or on the Property, then Developer shall, within twenty (20) days after such filing or service, either pay and fully discharge the lien or stop notice, effect the release of such lien or stop notice by delivering to the City a surety bond in sufficient form and amount, or provide the City with other assurance satisfactory to the City that the claim of lien or stop notice will be paid or discharged.
(b) If Developer fails to discharge any lien, encumbrance, charge, or claim in the manner required in this Section, then in addition to any other right or remedy, the City may (but shall be under no obligation to) discharge such lien, encumbrance, charge, or claim at Developer’s expense. Alternatively, the City may require Developer to immediately deposit with the City the amount necessary to satisfy such lien or claim and any costs, pending resolution thereof. The City may use such deposit to satisfy any claim or lien that is adversely determined against Developer. (c) Developer shall file a valid notice of cessation or notice of completion upon cessation of construction on the work for a continuous period of thirty (30) days or more, and take all other reasonable steps to forestall the assertion of claims of lien against the Property. Developer authorizes the City, but without any obligation, to record any notices of completion or cessation of labor, or any other notice that the City deems necessary or desirable to protect its interest in the Property.

Section 3.6 Inspections. Developer shall permit and facilitate, and shall require its contractors to permit and facilitate, observation and inspection at the Property by the City and by public authorities during reasonable business hours for the purposes of determining compliance with this Agreement.

Section 3.7 Right of Entry.
(a) Commencing on the date of this Agreement and ending on the date that is twelve (12) months from the Effective Date, Developer shall have the right, during regular business hours of Monday through Friday from 8:00 am to 5:00 pm, and upon at least forty-eight (48) hours' notice to the City, to enter the Property to perform work required to complete the Deliverables.

This Right of Entry may be extended in writing by the City, and the City shall not unreasonably withhold its agreement to such an extension if the Developer is diligently pursuing completion of the Deliverables in accordance with the terms and conditions of the Grant Documents. Borrower shall perform any invasive or destructive testing, only after obtaining the prior written consent of the City.
(b) Prior to exercising the Right of Entry under this Section, the Developer must provide City with evidence of insurance matching the requirements set forth in the attached Exhibit D, incorporated herein by this reference, which insurance shall name the City as an additional insured. The general liability insurance shall cover any claims of damages suffered by persons or property resulting from any acts or omissions of Developer, Developer’s affiliates, employees, agents, representatives, contractors or subcontractors. Upon request, Developer shall provide the City with proof of such insurance. Developer shall promptly repair any damage caused by Developer, its employees, agents, representatives, contractors or other related parties.

Attachment B 33 October 20, 2026 Item 9
9 ARTICLE 4.

GRANT REQUIREMENTS
Section 4.1 Information. Developer shall provide any information reasonably requested by the City in connection with this Agreement.

Section 4.2 Records.
(a) The Developer shall keep and maintain, at its principal place of business, complete and appropriate books, record and accounts relating to this Agreement, including all such books, records and accounts necessary or prudent to evidence and substantiate in full detail Developer compliance with the terms and provisions of this Agreement. Books, records and accounts relating to Developer’s compliance with the terms, provisions, covenants and conditions of this Agreement shall be kept and maintained in accordance with generally accepted accounting principles consistently applied, and shall be consistent with requirements of this Agreement. All such books, records, and accounts shall be open to and available for inspection and copying by the City, its auditors or other authorized representatives at reasonable intervals during normal business hours. Copies of all tax returns and other reports that Developer may be required to furnish any governmental agency shall at all reasonable times be open for inspection by the City at the place that the books, records and accounts of the Developer are kept. The Developer shall preserve such records for a period of not less than five (5) years after the creation of such records. If any litigation, claim, negotiation, audit exception, monitoring, inspection or other action relating to the use of the Loan is pending at the end of the record retention period stated herein, then the Developer shall retain such records until such action and all related issues are resolved. Developer shall cause the records to include all invoices, receipts, and other documents related to expenditures from the Loan funds. Developer shall maintain complete project-specific books, invoices, receipts, and records sufficient to substantiate use of Grant funds and compliance with this Agreement, under consistently applied accounting practices. Upon reasonable advance notice, such records shall be available for City inspection and copying during normal business hours. Inspection shall exclude unrelated corporate records, unrelated tax returns, privileged communications, and confidential third-party information, except relevant extracts reasonably necessary to verify funded expenditures. Records shall be retained for five (5) years after final disbursement, or until resolution of a pending matter concerning such records, whichever is later. (b) The City shall notify Developer of any records it deems insufficient.

Developer shall have fifteen (15) calendar days after the receipt of such a notice to correct any deficiency in the records specified by the City in such notice, or if a period longer than fifteen (15) days is reasonably necessary to correct the deficiency, then Developer shall begin to correct the deficiency within fifteen (15) days and correct the deficiency as soon as reasonably possible. (c) If any litigation, claim, negotiation, audit exception, monitoring, inspection or other action relating to the use of the Grant is pending at the end of the record retention period stated herein, then the Developer shall retain such records until such action and all related issues are resolved.

Section 4.3 City Audits. If requested by City, Developer shall provide project-specific expenditure statements and may at no cost to the City, may be required to provide an audit related to the use of the Grant.

Attachment B 34 October 20, 2026 Item 9
10 Section 4.4 Hazardous Materials.
(a) Developer shall not cause or permit the Property (as a result of the acts or negligent or intentional omissions of Developer, its contractors, employees, directors, officers and agents) to be in violation of any federal, state or local laws, ordinances or regulations relating to industrial hygiene or to the environmental conditions on, under or about the Property, including, but not limited to, soil and ground water conditions. Developer shall not use, generate, manufacture, store or dispose of on, under, or about the Property or transport to or from the Property any flammable explosives, radioactive materials, hazardous wastes, toxic substances or related materials, including, without limitation, any substances defined as or included in the definition of "hazardous substances," hazardous wastes," "hazardous materials," or "toxic substances" under any applicable federal or state laws or regulations (collectively referred to hereinafter as "Hazardous Materials") except such of the foregoing as may be customarily used in connection with the Deliverables. Notwithstanding the forgoing, the Developer shall not have any obligation hereunder to correct or remediate any condition that is merely discovered by Developer, or its affiliates, contractors, subcontractors, officers, agents and employees, unless and to the extent such condition is exacerbated by Developer’s or its affiliates', contractors', subcontractors', officers', agents' and employees' negligence or misconduct. (b) Developer shall immediately advise the City in writing if at any time it receives written notice of (i) any and all enforcement, cleanup, removal or other governmental or regulatory actions instituted, completed or threatened against Developer or the Property pursuant to any applicable federal, state or local laws, ordinances, or regulations relating to any Hazardous Materials, ("Hazardous Materials Law"); (ii) all claims made or threatened by any third party against Developer or the Property relating to damage, contribution, cost recovery compensation, loss or injury resulting from any Hazardous Materials (the matters set forth in clauses (i) and (ii) above are hereinafter referred to as "Hazardous Materials Claims"); and (iii) Developer’s discovery of any occurrence or condition on any real property adjoining or in the vicinity of the Property that could cause the Property or any part thereof to be classified as "border-zone property" under the provision of California Health and Safety Code, Sections 25220 et seq., or any regulation adopted in accordance therewith, or to be otherwise subject to any restrictions on the ownership, occupancy, transferability or use of the Property under any Hazardous Materials Law. (c) The City shall have the right to join and participate in, as a party if it so elects, any legal proceedings or actions initiated in connection with any Hazardous Materials Claims.
(d) Developer shall indemnify and hold harmless the City and its Council members, directors, officers, employees, agents, successors and assigns from and against any loss, damage, cost, fine, penalty, judgment, award, settlement, expense or liability, attorneys or other fees directly or indirectly arising out of or attributable to Developer’s violation of any Hazardous Materials Laws or Developer’s failure to comply with the applicable provisions of this Section 4.4.

The foregoing indemnity shall not apply to any claims, losses, damages, liabilities, fines, penalties, or charges that are cause by the negligence or willful misconduct of the City and their respective agents and employees.
(e) Without the City's prior written consent, which shall not be unreasonably withheld, Developer shall not take any remedial action in response to the presence of any Attachment B 35 October 20, 2026 Item 9
11 Hazardous Materials on, under or about the Property, nor enter into any settlement agreement, consent decree, or other compromise in respect to any Hazardous Material Claims, which remedial action, settlement, consent decree or compromise might, in the City's reasonable judgment, impair the value of the City's security hereunder; provided, however, that the City's prior consent shall not be necessary in the event that the presence of Hazardous Materials on, under, or about the Property either poses an immediate threat to the health, safety or welfare of any individual or is of such a nature that an immediate remedial response is necessary and it is not reasonably possible to obtain the City's consent before taking such action, provided that in such event Developer shall notify the City as soon as practicable of any action so taken. The City agrees not to withhold its consent, where such consent is required hereunder, if either (i) a particular remedial action is ordered by a court of competent jurisdiction, (ii) Developer will or may be subjected to civil or criminal sanctions or penalties if it fails to take a required action; or (iv) the action has been agreed to by the City.

Section 4.5 Notice of Litigation. Developer shall promptly notify the City in writing of any litigation materially affecting Developer and of any claims or disputes that involve a material risk of such litigation.

Section 4.6 Transfer. The Developer may not assign, subcontract, or transfer all or any part of this Agreement without the express written consent of the City, which consent may be granted or withheld in the City's sole and absolute discretion and any such attempted transfer or assignment without the prior written consent of City shall be void. The restriction on transfer in this section shall not be used to limit the ability of the Developer to designate the right to acquire the Property under the Conveyance Agreements to an affiliate of Developer provided that: (a) Such affiliate is controlled by one or more principals of Developer, and such principals collectively hold at least a majority of the ownership interests in the affiliate; (b) Developer shall not be released from any liability or obligation under his Agreement; and (c) Developer shall remain the lead negotiator with the City with respect to the Conveyance Agreements and Affordable Development.

A consent by the City to one assignment shall not be deemed to be a consent to any subsequent assignment. No Transfer shall be permitted without the prior written consent of the City, which the City may withhold in its sole discretion. Any Transfer in violation of this Agreement may result in the City not releasing any additional Grant financing. An assignment to an approved Project entity shall preserve all Grant protections, accrued payment rights, and the Work Product.

Section 4.7 Anti-Lobbying Certification.

Developer certifies, to the best of Developer’s knowledge or belief, that if any funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, Disclosure Form to Report Lobbying, in accordance with its instructions. This certification is a material representation of fact upon which reliance was placed when this Agreement was made or entered into.

Attachment B 36 October 20, 2026 Item 9
12 ARTICLE 5.

REPRESENTATIONS AND WARRANTIES OF DEVELOPER
Section 5.1 Representations and Warranties. As of the date of this Agreement, Developer hereby represents and warrants to the City as follows:
(a) Organization. Developer is a California corporation, validly existing and in good standing under the laws of the State of California and has the power and authority to own its property and carry on its business as now being conducted. (b) Authority of Developer. Developer has full power and authority to execute and deliver this Agreement and to accept and administer the Grant contemplated hereunder, to execute and deliver the Grant Documents and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement, and to perform and observe the terms and provisions of all of the above.
(c) Authority of Persons Executing Documents. This Agreement and the Grant Documents and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement have been executed and delivered by persons who are duly authorized to execute and deliver the same for and on behalf of Developer, and all actions required under Developer’s organizational documents and applicable governing law for the authorization, execution, delivery and performance of this Agreement and the Grant Documents and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement, have been duly taken.
(d) Valid Binding Agreements. This Agreement and the Grant Documents and all other documents or instruments which have been executed and delivered pursuant to or in connection with this Agreement constitute or, if not yet executed or delivered, will when so executed and delivered constitute, legal, valid and binding obligations of Developer enforceable against it in accordance with their respective terms.
(e) No Breach of Law or Agreement. Neither the execution nor delivery of this Agreement and the Grant Documents or of any other documents or instruments executed and delivered, or to be executed or delivered, pursuant to this Agreement, nor the performance of any provision, condition, covenant or other term hereof or thereof, will conflict with or result in a breach of any applicable statute, rule or regulation, or any judgment, decree or order of any court, board, commission or agency whatsoever binding on Developer, or any provision of the organizational documents of Developer, or will conflict with or constitute a breach of or a default under any material agreement to which Borrower is a party, or will result in the creation or imposition of any lien upon any assets or property of Developer, other than liens established pursuant hereto.
(f) Pending Proceedings. Developer is not in default under any law or regulation or under any order of any court, board, commission or agency whatsoever, and there are no claims, actions, suits or proceedings pending or, to the knowledge of Developer, threatened against or affecting Developer or the Deliverables, at law or in equity, before or by any court, board, commission or agency whatsoever which might, if determined adversely to Developer, Attachment B 37 October 20, 2026 Item 9
13 materially impairs its legal authority or ability to perform the approved funded activities or grant the Assignment of the Work Product.
(g) Financial Statements. The financial statements of Developer and other financial data and information furnished by Developer to the City fairly present the information contained therein. As of the Effective Date, there has not been any adverse, material change in the financial condition of Developer from that shown by such financial statements and other data and information.
(h) Taxes. Developer and its subsidiaries have filed all federal and other material tax returns and reports required to be filed, and have paid all federal and other material taxes, assessments, fees and other governmental charges levied or imposed upon them or their income or property otherwise due and payable, except those that are being contested in good faith by appropriate proceedings and for which adequate reserves have been provided in accordance with generally accepted accounting principles. There is no proposed tax assessment against Developer or any of its subsidiaries that could, if made, result in (i) a material impairment of the ability of Borrower to perform under any loan document to which it is a party, or (ii) a material adverse effect upon the legality, validity, binding effect or enforceability against Developer of any Grant Document.

ARTICLE 6.

DEFAULT AND REMEDIES
Section 6.1 Events of Default. Each of the following shall constitute an "Event of Default" by Developer under this Agreement:
(a) Failure to Return Funds. Failure to return an improper expenditure after written agreement or final determination and expiration of the payment period under Section

2.6(b), continuing for thirty (30) days after written City notice. A good-faith dispute pursued diligently shall not constitute a payment default before such determination. (b) Default by Developer under Predevelopment Documents. If Developer is in material default under any of the documents assigned to the City pursuant to the Assignment of Work Product, after the expiration of any applicable notice and cure periods or if no cure periods are provided in the applicable document then after a written notice of default from the third party contractor under such document.
(c) Breach of Covenants. Failure by Developer to duly perform, comply with, or observe any of the material conditions, terms, or covenants of any of the Grant Documents, and such failure having continued uncured for thirty (30) calendar days after receipt of written notice thereof from the City to the Developer or, if the breach cannot be cured within thirty (30) calendar days, the Developer shall not be in breach so long as Developer is diligently undertaking to cure such breach and such breach is cured within one hundred twenty (120) calendar days; provided, however, that if a different period or notice requirement is specified under any other section of this Article 6, the specific provisions shall control.
(d) Insolvency. A final, unstayed court order adjudging Developer bankrupt or insolvent, approving a reorganization or arrangement, appointing a receiver, trustee, liquidator, or Attachment B 38 October 20, 2026 Item 9
14 assignee for Developer or a substantial portion of its property, or directing Developer’s winding up or liquidation shall constitute an Event of Default if the order remains unstayed or undischarged for ninety (90) calendar days. Developer’s written admission that it is unable to pay its debts as they become due or its voluntary filing of a petition seeking such relief shall also constitute an Event of Default. Upon such default, the City may suspend further Grant disbursements and exercise the remedies expressly provided in this Agreement.
(e) Assignment; Attachment. Developer or Developer’s general partner, if Developer is a partnership, or Developer’s managing member, if Developer is a limited liability company, shall have assigned its assets for the benefit of its creditors or suffered a sequestration or attachment of or execution on any substantial part of its property, unless the property so assigned, sequestered, attached or executed upon shall have been returned or released within ninety (90) calendar days after such event or, if sooner, prior to sale pursuant to such sequestration, attachment, or execution. The occurrence of any of the Events of Default in this paragraph shall act to accelerate automatically, without the need for any action by the City, the indebtedness evidenced by the Note.
(f) Suspension; Termination. Developer or Developer’s general partner, if Developer is a partnership, or Developer’s managing member, if Developer is a limited liability company, shall have voluntarily suspended its business or, if Developer is a partnership, the partnership shall have been dissolved or terminated, other than a technical termination of the partnership for tax purposes.
(g) Liens on Property. There shall be filed any claim of lien (other than liens approved in writing by the City), in connection with Developer or this Agreement, against the Property or any part thereof, or any interest or right made appurtenant thereto, or the service of any notice to withhold proceeds of the Grant and the continued maintenance of said claim of lien or notice to withhold for a period of twenty (20) calendar days, without discharge or satisfaction thereof or provision therefor (including, without limitation, the posting of bonds) satisfactory to the City.
(h) Unauthorized Transfer. Any Transfer other than as permitted by Section 4.6. (i) Representation or Warranty Incorrect When Made. Any Developer representation or warranty contained in this Agreement, or in any application, financial statement, certificate, or report submitted to the City in connection with any of the Grant Documents, proving to have been incorrect in any material respect when made.

Section 6.2 Remedies. The occurrence of any default hereunder following the expiration of all applicable notice and cure periods will, either at the option of the City or automatically where so specified, relieve the City of any obligation to make or continue the Grant and shall give the City the right to proceed with any and all remedies, either successively or concurrently, set forth in this Agreement, the Grant Documents, as well as any remedy accruing to the City by law, including, but not limited to, the following:

Section 6.3 Grant Remedies.

Upon an Event of Default after expiration of all applicable notice and cure periods, the City Attachment B 39 October 20, 2026 Item 9
15 may suspend or terminate undisbursed Grant assistance, recover improperly used Grant funds as provided in Section 2.6, enforce the Assignment of Work Product, seek specific performance or injunctive relief, and enforce any indemnity or other liability expressly preserved by this Agreement. Nothing in this Section authorizes acceleration of properly used Grant funds or recovery inconsistent with Sections 2.6 and 2.9.

Section 6.4 Specific Performance.

The City shall have the right to specific performance or other suit, action or proceeding at law or in equity to require Developer to perform its obligations and covenants under the Grant Documents or to enjoin acts on things which may be unlawful or in violation of the provisions of the Grant Documents.

Section 6.5 Right of Contest. Developer shall have the right to contest in good faith any claim, demand, levy, or assessment whose assertion would constitute an Event of Default under this Agreement. Any such contest shall be prosecuted diligently and in a manner that does not materially prejudice the City or the City’s rights under this Agreement.

Section 6.6 Remedies Cumulative. No right, power, or remedy given to the City by the terms of this Agreement or the Grant Documents is intended to be exclusive of any other right, power, or remedy; and each and every such right, power, or remedy shall be cumulative and in addition to every other right, power, or remedy given to the City by the terms of any such instrument, or by any statute or otherwise against Developer and any other person. Neither the failure nor any delay on the part of the City to exercise any such rights and remedies shall operate as a waiver thereof, nor shall any single or partial exercise by the City of any such right or remedy preclude any other or further exercise of such right or remedy, or any other right or remedy.

ARTICLE 7.

GENERAL PROVISIONS
Section 7.1 Relationship of Parties. Nothing contained in this Agreement shall be interpreted or understood by any of the parties, or by any third persons, as creating the relationship of employer and employee, principal and agent, limited or general partnership, or joint venture between the City and Developer or its agents, employees or contractors, and Developer shall at all times be deemed an independent contractor and shall be wholly responsible for the manner in which it or its agents, or both, perform the services required of it by the terms of this Agreement.

Developer has and retains the right to exercise full control of employment, direction, compensation, and discharge of all persons assisting in the performance of services under this Agreement.

Developer shall be solely responsible for all matters relating to payment of its and its contractors' employees, including compliance with Social Security, withholding, and all other laws and regulations governing such matters. Developer shall be solely responsible for its own acts and those of its agents and employees.

Section 7.2 Limitation on Effect of Agreement. This Agreement shall not obligate either the City or the Developer to enter into the Conveyance Agreements for the Affordable Development or any component thereof. Execution of this Agreement by the City is an agreement to conduct a period of exclusive negotiations in accordance with the terms hereof, reserving for Attachment B 40 October 20, 2026 Item 9
16 subsequent City Council action the final discretion and approval regarding the execution of the Conveyance Agreements and all proceedings and decisions in connection therewith. Any the Conveyance Agreements resulting from negotiations pursuant to this Agreement shall become effective only if and after such Conveyance Agreements have been considered and approved by the City Council, following conduct of all legally required procedures, and executed by duly authorized representatives of the City and the Developer.

Section 7.3 No Claims. Nothing contained in this Agreement shall create or justify any claim against the City by any person that Developer may have employed or with whom Developer may have contracted relative to the purchase of materials, supplies or equipment, or the furnishing or the performance of any work or services with respect to this Agreement.

Section 7.4 Amendments. No alteration or variation of the terms of this Agreement shall be valid unless made in writing by the parties.

Section 7.5 Indemnification.
(a) To the fullest extent permitted by law, Developer shall defend, indemnify, and hold harmless the City Indemnitees from and against all claims, damages, losses, and expenses, of every kind, nature and description (including, but not limited to, attorney's fees, expert fees, and costs of suit), directly or indirectly arising from, or in any way related to the performance or nonperformance of this Agreement, by reason of death, injury, property damage, or any claim arising from the alleged violation of any state or federal law, statute or regulation, (including but not limited to, CEQA and NEPA). Provided, however, that in no event shall Developer be obligated to defend or indemnify the City Indemnitees with respect to the gross negligence or willful misconduct of the City Indemnitees. Developer’s indemnification obligations shall not be limited by the insurance provisions of this Agreement. The Parties expressly agree that any payment, attorney's fees, costs or expense City incurs or makes to or on behalf of an injured employee under the City's self-administered workers' compensation is included as a loss, expense, or cost for the purposes of this section, and that this section will survive the expiration or early termination of this Agreement.
(b) This indemnity is in addition to any other rights or remedies which City may have under the law or this Agreement. In the event of any claim or demand made against any party which is entitled to be indemnified hereunder, City may, at its sole discretion, reserve, retain or apply any monies due to Developer under this Agreement for the purpose of resolving such claims; provided however, that City may release such funds if Developer provides City with reasonable assurances of protection of the City's interest. The City shall, in its sole discretion determine whether such assurances are reasonable.
(c) Developer agrees that its duty to defend arises upon an allegation of liability based upon the performance of services under this Agreement by Developer, its officers, agents, representatives, employees, sub-consultants, or anyone for whom Developer is liable and that an adjudication of Developer’s liability is not a condition precedent to Developer’s duty to defend.

Section 7.6 Non-Liability of City Officials, Employees and Agents. No member, official, employee or agent of the City shall be personally liable to Developer in the event of any Attachment B 41 October 20, 2026 Item 9
17 default or breach by the City or for any amount which may become due to Developer or its successor or on any obligation under the terms of this Agreement.

Section 7.7 No Third Party Beneficiaries. This Agreement is made and entered into solely for the benefit of the City and the Developer and no other person shall have any right of action under or by reason of this Agreement.

Section 7.8 Discretion Retained By City. The City's execution of this Agreement in no way limits the discretion of the City, acting in its capacity as a municipal government, in the permit and approval process for the necessary land use approvals for the development of the proposed Project, including, but not limited to, any additional approval that may be necessary under CEQA.

This Agreement does not constitute City approval of any necessary land use approvals for the proposed Project, and does not permit, or otherwise authorize, the construction of the Project or the use of the Property for any particular development. The City retains full discretion to approve or disapprove the land use approvals necessary for the proposed Project and prior to consideration of the applicable land use approvals necessary for the proposed Project, the City must first perform all applicable statutory preconditions to such consideration, including, but not limited to, completion of any required review under CEQA. Nothing in this Agreement, including, but not limited to, the funding of the Loan in accordance with the provisions of this Agreement, shall in any way limit the City's discretion in the permit and approval process for the necessary land use approvals for the development of the proposed Project, including, but not limited to, any additional approval that may be required under CEQA. In the event of any conflict between the terms of this Section and any other provision of this Agreement, the terms of this Section shall control.

Section 7.9 Conflict of Interest.
(a) Except for approved eligible administrative or personnel costs and expenses relating to the Project which are paid to the preparers of the Deliverables and others receiving compensation no greater than that to which they would be entitled in an arms-length, third party transaction, no person described in Subsection (b) below who exercises or has exercised any functions or responsibilities with respect to the activities funded pursuant to this Agreement or who is in a position to participate in a decision-making process or gain inside information with regard to such activities, may obtain a personal or financial interest or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during, or at any time after, such person's tenure. Developer shall exercise due diligence to ensure that the prohibition in this Section is followed.
(b) The conflict of interest provisions of Subsection (a) above apply to any person who is an employee, agent, consultant, officer, council member or board member of the City or Developer, or any immediate family member of such person, or any elected or appointed official of the City, or any person related within the third (3rd) degree of such person.

Section 7.10 Notices, Demands and Communications. Formal notices, demands and communications between the City and the Developer shall be sufficiently given if, and shall not be deemed given unless, dispatched by certified mail, postage prepaid, return receipt requested, or sent by express delivery or overnight courier service, to the office of the Parties shown as follows, or such other address as the Parties may designate in writing from time to time:

Attachment B 42 October 20, 2026 Item 9
18 BORROWER: Gangi Development
229 East Palm Ave.

Burbank, CA 91502
Attn: Frank Gangi, President
CITY: City of Del Mar
1050 Camino Del Mar
Del Mar, CA 92104
Attn: Ashley Jones, City Manager
With copies to:

Devaney, Pate, Morris & Cameron, LLP
402 W. Broadway, Suite 1300
San Diego, CA 92101
Attn: Christina Cameron, City Attorney
Goldfarb & Lipman LLP
Attention: Rafael Yaquian
1300 Clay Street, 11th Floor
Oakland, CA 94612
Such written notices, demands and communications shall be effective on the date shown on the delivery receipt as the date delivered or the date on which delivery was refused.

Section 7.11 Applicable Law. This Agreement shall be governed by and construed in accordance with California law. Venue for all litigation relative to the formation, interpretation and performance of this Agreement shall be in San Diego County, California.

Section 7.12 Parties Bound. Except as otherwise limited herein, the provisions of this Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, legal representatives, successors, and assigns.

Section 7.13 Severability. If any term of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall continue in full force and effect unless the rights and obligations of the parties have been materially altered or abridged by such invalidation, voiding or unenforceability.

Section 7.14 Time is of the Essence. Time is of the essence for each of the Parties' obligations under this Agreement.

Section 7.15 Force Majeure. In addition to specific provisions of this Agreement, performance by either party shall not be deemed to be in default where delays or defaults are due to war; insurrection; strikes; lock-outs; riots; floods; earthquakes; fires; severe and unusual weather, quarantine restrictions; freight embargoes; lack of transportation; or court order; or any other similar causes (other than lack of funds of Developer) beyond the control or without the fault of the party claiming an extension of time to perform. An extension of time for any cause will be deemed granted if notice by the party claiming such extension is sent to the other within ten (10) calendar Attachment B 43 October 20, 2026 Item 9
19 days from the commencement of the cause and such extension of time is not rejected in writing by the other party within ten (10) calendar days of receipt of the notice. In no event shall the City be required to agree to cumulative delays in excess of one hundred eighty (180) calendar days.

Section 7.16 City Approval. Whenever this Agreement calls for or permits the approval, consent, authorization or waiver of the City, the approval, consent, authorization, or waiver of the City Manager shall constitute the approval, consent, authorization, or waiver of the City without further action of the City Council. By approving this Agreement, the City Council has elected to delegate and authorizes the City Manager to deliver such approvals or consents as are required by this Agreement, or to waive requirements under this Agreement, on behalf of the City. Nothing shall prevent the City Council from revoking or modifying any authority delegated to the City Manager under this Agreement; any such revocation or modification shall not impact the validity of this Agreement. Any consents or approvals required under this Agreement shall not be unreasonably withheld or made, except where it is specifically provided that a sole discretion standard applies. The Developer acknowledges that nothing in this Agreement shall limit, waive, or otherwise impair the authority and discretion, as applicable, of: (1) the City's Planning Department, in connection with the review and approval of the proposed construction plans for the Affordable Development, or any use, or proposed use, of the Property; (2) the City's issuance of a building permit; and (3) any other office or department of the City acting in its capacity as a governmental entity, regulatory authority and/or police power.
(b) The City Manager is also hereby authorized to approve, on behalf of the City, requests by Developer for reasonable extensions of time deadlines set forth in this Agreement.

The City shall not unreasonably delay in reviewing and approving or disapproving any proposal by Developer made in connection with this Agreement.

Section 7.17 Waivers. Any waiver by the City of any obligation or condition in this Agreement must be in writing. No waiver will be implied from any delay or failure by the City to take action on any breach or default of Developer or to pursue any remedy allowed under this Agreement or applicable law. Any extension of time granted to Developer to perform any obligation under this Agreement shall not operate as a waiver or release from any of its obligations under this Agreement. Consent by the City to any act or omission by Developer shall not be construed to be a consent to any other or subsequent act or omission or to waive the requirement for the City's written consent to future waivers.

Section 7.18 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. The part, title, section, subsection and paragraph headings used in this Agreement are for purposes of convenience only and shall not be construed to limit or extend the meaning of this Agreement.

Section 7.19 Developer Not an Agent. Nothing in this Agreement shall be deemed to appoint Developer as an agent for or representative of the City, and Developer is not authorized to act on behalf of the City with respect to any matters except those specifically set forth in this Agreement. The City shall not have any liability or duty to any person, firm, corporation, or governmental body for any act of omission or commission, liability, or obligation of Developer, whether arising from actions under this Agreement or otherwise.

Attachment B 44 October 20, 2026 Item 9
20 Section 7.20 Entire Understanding of the Parties. This Agreement, together with the other Grant Documents, constitutes the entire understanding and agreement of the parties with respect to the Grant.

Section 7.21 Counterparts. This Agreement may be executed in multiple originals, each of which is deemed to be an original, and may be signed in counterparts.

REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK
Attachment B 45 October 20, 2026 Item 9
21 IN WITNESS WHEREOF, City and Developer have executed this Agreement through their duly authorized representatives as of the Effective Date.

DEVELOPER:

GANGI DEVELOPMENT, a California corporation
BY: _______________________________
Frank Gangi, President
CITY:

BY: _________________________________
Ashley Jones, City Manager
APPROVED AS TO LEGAL FORM:

SPECIAL COUNSEL
BY: __________________________________
Rafael Yaquian, Goldfarb & Lipman LLP
Attachment B 46 October 20, 2026 Item 9
A-1

EXHIBIT A

LEGAL DESCRIPTION OF PROPERTY
For APN/Parcel ID(s): 300-093-17-00
The Southerly 43.38 feet of Lot 9 and the Southerly 43.38 feet of the Westerly 21.00 feet of Lot 10 in Block 26 of Del Mar, in the City of Del Mar, County of San Diego, State of California, filed in the Office of the County Recorder of San Diego County, October 7, 1885.

Also known as Parcel 3 of City of Del Mar Certificate of Compliance COC16-001, recorded April 13, 2016 as Document No. 2016-0169691 of Official Records of said San Diego County.

Attachment B 47 October 20, 2026 Item 9
B-1

EXHIBIT B
BUDGET
Item Amount
ALTA / Topo / Boundary Survey $ 20,000.00
Geotechnical Investigation & Report $ 10,000.00
AB130 / SB131 Exemption Analysis $ 15,000.00
CEQA Amendment Analysis / Initial Study/ EIR Support $ 20,000.00 Phase I Environmental Site Assessment $ 2,500.00
Hydrology / Drainage / Stormwater $ 20,000.00
Biological $ 5,000.00
VMT / Transportation $ 7,500.00
Shared Parking Analysis $ 7,500.00
Noise / Acoustic $ 10,000.00
Utility Capacity $ 10,000.00
Cultural / Tribal Resources $ 10,000.00
Paleontological $ 5,000.00
Air Quality / GHG $ 10,000.00
Visual / Massing $ 15,000.00
Architectural & Engineering $ 162,500.00
Misc. Entitlement/Legal/CEQA Consultants $ 50,000.00
Application & Plan Check Fees $ 75,000.00
Community Outreach $ 20,000.00
Contingency $ 25,000.00
Total $ 500,000.00
Attachment B 48 October 20, 2026 Item 9
C-1

EXHIBIT C

SCOPE OF WORK
Purpose and Relationship to ENRA.

The purpose of this Scope of Work is to identify the predevelopment activities, due diligence tasks, studies, reports, plans, schedules, and related deliverables to be funded under this Agreement in connection with the proposed affordable housing development on the Property.

The tasks described herein are intended to implement and support the negotiation tasks described in the ENRA, including the ENRA Schedule, and shall be performed in a manner consistent with the ENRA, this Agreement, the approved Budget, and all written approvals issued by the City.

General Requirements.

Developer shall use Grant proceeds only for eligible third-party costs and other costs expressly approved in the Budget or otherwise approved in writing by the City. Developer shall not be required to incur reimbursable third-party costs, submit entitlement applications, commence environmental studies, conduct community outreach, or undertake other reimbursable predevelopment activities unless and until this Agreement is effective and the applicable cost is included in the approved Budget or otherwise approved in writing by the City. Developer shall coordinate with the City throughout performance of this Scope of Work and shall provide progress updates, supporting documentation, and Deliverables as reasonably requested by the City.

Project Initiation and Administration.

Developer shall initiate and manage the predevelopment work funded under this Agreement, including coordination with consultants, preparation of draw requests, maintenance of project records, and submission of invoices and supporting documentation. Developer shall confer with the City regarding the sequencing of work, required City approvals, timing of Deliverables, and any necessary updates to the ENRA Schedule. Developer shall provide written progress reports upon reasonable request by the City, including a summary of work completed, work in progress, anticipated next steps, schedule status, budget status, and any material issues affecting feasibility, timing, cost, or implementation.

Organizational Documents.

Developer shall provide the City with copies of its organizational documents evidencing that Developer exists, is in good standing, is authorized to conduct business in California, and has authority to perform its obligations under the ENRA, this Agreement, and any related Grant Documents. This task shall be completed concurrent with execution of the ENRA or as otherwise required by the ENRA Schedule.

Disclosure Documents and Existing City Information.

The City shall provide Developer with copies of non-confidential and nonproprietary reports, studies, analyses, official correspondence, and similar documents relating to the Property that are in the City's possession or under its reasonable control. Developer shall review such materials as part of its due diligence and shall identify any additional information reasonably needed to Attachment B 49 October 20, 2026 Item 9
C-2
evaluate the feasibility of the Project. Developer shall provide the City with copies of nonconfidential and nonproprietary reports, studies, analyses, official correspondence, and similar documents related to the Property prepared or commissioned by Developer with funds provided under this Agreement.

Title Review and Title Adequacy.

Developer shall review the preliminary title report for the Property and any updates thereto, evaluate exceptions to title, identify title matters that may affect development feasibility or conveyance, and provide written notice to the City of any objectionable title exceptions within the time required by the ENRA Schedule. Developer may consult with title professionals and legal counsel regarding title conditions, endorsements, exceptions, easements, access, encumbrances, and other matters affecting the Property, to the extent such costs are included in the approved Budget or otherwise approved in writing by the City.

Physical Due Diligence and Site Feasibility.

Developer shall conduct physical due diligence activities reasonably necessary to determine whether the Property is suitable for the Project, including evaluation of geotechnical and soils conditions, hazardous materials conditions, noise conditions, infrastructure, site access, utility availability, physical constraints, regulatory constraints, and other site conditions Developer reasonably determines are relevant to feasibility. Developer may commission third-party studies, reports, surveys, investigations, analyses, and consultant work related to such due diligence, subject to the approved Budget and this Agreement. Developer shall not perform invasive or destructive testing without prior written City approval and shall comply with all right-of-entry, insurance, notice, and property-protection requirements set forth in this Agreement and the ENRA.

Utilities and Infrastructure Review.

Developer, in coordination with the City, shall consult with applicable utility providers and infrastructure agencies to preliminarily determine whether existing utility facilities and infrastructure serving or affecting the Property are adequate for the Project or may require expansion, relocation, undergrounding, upgrades, extensions, easements, or other improvements.

Developer shall summarize known utility and infrastructure issues, anticipated constraints, potential cost implications, and additional study needs in the applicable feasibility materials or progress reports.

Conceptual Development Program and Preliminary Site Plan.

Developer shall prepare a conceptual development program for the Property, which may include the proposed scope of the affordable housing development, preliminary unit count or range, proposed affordability levels and income targeting, anticipated affordability control structure and duration, preliminary building massing, general location of buildings and site improvements, circulation, parking, ingress and egress, open space, landscaping, and other proposed improvements. Developer shall prepare a preliminary site plan, conceptual drawings, massing studies, or similar materials sufficient to support review by the City, community outreach, preliminary feasibility analysis, and environmental review scoping.

Planning Approvals and Entitlement Strategy.

Attachment B 50 October 20, 2026 Item 9
C-3
Developer, in coordination with the City, shall evaluate the land use approvals, planning approvals, coastal development permit requirements, zoning actions, General Plan or Local Coastal Program considerations, tentative map requirements, discretionary approvals, ministerial approvals, and other governmental approvals that may be necessary for the Project. Developer shall prepare a proposed planning approval and entitlement timeline, including anticipated application milestones, City review steps, public hearing requirements, and dependencies.

Application fees and plan check fees shall be incurred only after this Agreement is effective and only to the extent included in the approved Budget or otherwise approved in writing by the City.

Environmental Review Support.

Developer and the City shall coordinate to develop a preliminary project description and supporting materials to facilitate the environmental review process required under CEQA and, if applicable, NEPA. Developer may prepare or cause to be prepared technical studies, preliminary plans, consultant analyses, and other supporting materials relevant to environmental review, subject to the approved Budget and written City approvals. Nothing in this Scope of Work shall obligate the City to approve the Project, make any particular CEQA or NEPA finding, select any environmental document, impose or refrain from imposing mitigation measures, or take any discretionary action regarding the Project.

Financing Proposal and Financial Feasibility.

Developer shall prepare a preliminary financing proposal and financial feasibility analysis for the Project. The Financing Proposal shall include, as applicable, a preliminary development budget, operating pro forma, anticipated sources and uses of funds, proposed debt and equity sources, anticipated subsidy needs, assumptions regarding land costs or ground lease terms, operating revenues and expenses, affordability assumptions, projected reserves, and a long-term operating projection consistent with the ENRA. The financial analysis shall be refined during the term of this Agreement and used to evaluate financial feasibility and to support negotiation of the Conveyance Agreements.

Community Outreach Plan and Outreach Activities.

Developer shall prepare a proposed community outreach plan and schedule for City review.

Following City approval of the outreach plan, Developer shall conduct community outreach activities and community meetings consistent with the approved plan and the ENRA Schedule.

Outreach materials may include meeting notices, presentation materials, conceptual plans, summaries of the proposed Project, frequently asked questions, comment summaries, and responses to recurring themes or issues. Developer shall summarize community input received and identify any resulting design, feasibility, schedule, or entitlement considerations.

Feasibility Report and Consolidated Deliverables.

Developer shall prepare a Feasibility Report or consolidated package of Deliverables in a form reasonably acceptable to the City. The Feasibility Report may include, as applicable: a project overview; summary of site and title due diligence; conceptual development program; preliminary site plan or related design materials; utility and infrastructure findings; planning approval strategy; environmental review support materials; community outreach summary; development schedule; phasing plan, if applicable; financing proposal; preliminary development budget; Attachment B 51 October 20, 2026 Item 9
C-4
operating pro forma; identification of major feasibility issues; and recommendations regarding whether and how the Parties should proceed with negotiation of the Conveyance Agreements.

Schedule.

Developer shall use good faith efforts to complete the tasks in this Scope of Work within the timeframes set forth in the ENRA Schedule, as the same may be updated, extended, or modified in accordance with the ENRA and this Agreement. If performance of any task is delayed by delay in execution of this Agreement, availability of approved funding, City review, consultant performance, delivery of requested information, access limitations, community outreach timing, environmental review needs, or other circumstances outside Developer’s reasonable control, Developer shall promptly notify the City and confer regarding any necessary schedule adjustment.

Budget and Eligible Costs.

Eligible costs shall be limited to costs included in the approved Budget or otherwise approved in writing by the City. Eligible costs may include third-party consultant costs, technical studies, reports, surveys, architectural and planning services, engineering and utility analyses, financial feasibility analyses, environmental review support, community outreach materials, approved application and plan check fees, and other predevelopment costs directly related to completion of the tasks in this Scope of Work. Developer staff costs, internal overhead, developer fee, and costs not included in the approved Budget shall not be eligible unless expressly approved in writing by the City. Gangi Architects staff and Tricity Realty shall be treated as separate project consultants, and its approved architectural, community outreach, and related professional-service costs, shall be eligible for payment from the Grant. Such costs shall not be classified as Developer staff costs, internal overhead, predevelopment-management costs, or developer fee.

City Review and Approval.

Developer shall submit Deliverables to the City for review as they are completed or as otherwise reasonably requested by the City. City review of Deliverables shall not constitute approval of the Project, approval of any entitlement application, approval of any CEQA or NEPA document, or approval of the Conveyance Agreements. The City retains full discretion over all governmental, regulatory, land use, environmental, and legislative approvals.

Assignment and Use of Work Product.

To the extent required by this Agreement and the Assignment of Work Product, Developer shall assign to the City its rights and interests in Deliverables and work product funded with Grant proceeds, excluding privileged or proprietary information except to the extent such proprietary information is funded with Grant proceeds and is required to be provided under this Agreement.

Developer shall obtain, to the extent commercially reasonable and applicable, consultant agreements or permissions allowing the City to use funded Deliverables for City purposes related to the Property and Project if this Agreement or the ENRA terminates.

No Commitment to Proceed.

Completion of this Scope of Work is intended to assist the Parties in evaluating feasibility and negotiating potential Conveyance Agreements. Nothing in this Scope of Work obligates either Party to approve the Project, enter into the Conveyance Agreements, convey or lease the Attachment B 52 October 20, 2026 Item 9
C-5
Property, approve any entitlement, commit additional funds, or proceed with development of the Project.

Attachment B 53 October 20, 2026 Item 9
D-1

EXHIBIT D

INSURANCE REQUIREMENTS

CITY INSURANCE REQUIREMENTS
(Required to exercise Right of Entry)

INSURANCE

1.1 Developer shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Developer, their agents, representatives, employees or subcontractors. Insurance shall be placed with insurers with a current A.M. Best’s rating of no less than “A” and “VII” and are admitted to conduct business in the State of California, unless otherwise approved in writing by the City’s Risk Manager.

1.2 Developer’s liabilities, including but not limited to Developer’s indemnity obligations, under the Agreement, shall not be deemed limited in any way to the insurance coverage required herein. All policies of insurance required hereunder must provide that the City is entitled to thirty (30) days prior written notice (ten (10) days for cancellation due to non-payment of premium) of cancellation or non-renewal of the policy or policies. Maintenance of specified insurance coverage is a material element of this Agreement.

1.3 Types and Amounts Required. Developer shall maintain, at minimum, the following insurance coverage for the duration of this Agreement:

1.3.1 Commercial General Liability (CGL). Insurance written on an ISO Occurrence form CG 00 01 07 98 or equivalent providing coverage at least as broad which shall cover liability arising from any and all personal injury or property damage in the amount of $1,000,000 per occurrence and subject to an annual aggregate of $2,000,000. There shall be no endorsement or modification of the CGL limiting the scope of coverage for either insured vs. insured claims or contractual liability. All defense costs shall be outside the limits of the policy.

1.3.2 Commercial Automobile Liability. For all of the Developer’s automobiles including owned, hired and non-owned automobiles, automobile insurance written on an ISO form CA 00 01 12 90 or a later version of this form or an equivalent form providing coverage at least as broad for bodily injury and property damage for a combined single limit of $300,000 per occurrence. Insurance certificate shall reflect coverage for any automobile (any auto).

1.3.3 Workers' Compensation. For all of the Developer’s employees who are subject to this Agreement and to the extent required by applicable state or federal law, a Attachment B 54 October 20, 2026 Item 9
D-2
Workers' Compensation policy providing at minimum $1,000,000 employers' liability coverage. The Developer shall provide an endorsement that the insurer waives the right of subrogation against the City and its respective elected officials, officers, employees, agents and representatives.

1.3.4 Consulting Liability. Consulting liability (errors and omissions) coverage with a limit of $1,000,000 per claim and $2,000,000 annual aggregate. The Developer shall ensure both that (1) the policy retroactive date is on or before the date of commencement of the Scope of Work; and (2) the policy will be maintained in force for a period of three years after substantial completion of the Scope of Work or termination of this Agreement whichever occurs last. The Developer agrees that for the time period defined above, there will be no changes or endorsements to the policy that increase the City's exposure to loss. All defense costs shall be outside the limits of the policy.

1.4 Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions are the responsibility of the Developer and must be declared to and approved by the City. At the option of the City, either (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees, and volunteers, or (2) the Developer shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses.

1.5 Additional Required Provisions. The commercial general liability and automobile liability policies shall contain, or be endorsed to contain, the following provisions:

1.5.1 The City, its officers, officials, employees, and representatives shall be named as additional insureds. The City's Additional Insured status must be reflected on additional insured endorsement form which shall be submitted to the City.

1.5.2 The policies are primary and non-contributory to any insurance that may be carried by the City, as reflected in an endorsement which shall be submitted to the City.

1.6 Verification of Coverage. Developer shall furnish the City with original certificates and amendatory endorsements affecting coverage required under this Exhibit.

The endorsement should be on forms provided by the City or on other than the City’s forms provided those endorsements conform to City requirements. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications at any time.

Attachment B 55 October 20, 2026 Item 9
To: Mayor Tracy Martinez, City Council members Gaasterland, Quirk and Spelich, City Manager Ashley Jones
Re: 10 Street proposal for low income housing meaning cramming 8 units onto 4000 SF.

The City of Del Mar just celebrated 50 years of Del Mar’s Community Plan originated by brilliant young professionals who happen to be residents in the 1970s that continues to be the guideline for the city.This extensive documents sets out goals in very specific detail.

Start with“to preserve and embrace the special character of Del Mar…specifying “single family character” and “to preserve and acquire permanent open space” and to “minimize the impact of the automobile” and “landscape buffer zones.” And “harmonize blending of buildings and landscapes”. This document, well thought out for then and now, gives extensive guidance and direction.

Stacking eight units on a too too small a space, other than being a number count, does not make sense to the location, Del Mar’s original Main Street, that is now a small open space with trees, the small stacked potential units that cannot house families of any size, or.blend in, or offer any form of ownership to any of the potential tenants with no on site oversight of the space no services. o More serious thinking is needed, planning and consideration about the needs of new residents in terms of space, services and managerial oversight. So far only numbers to fulfill a quota have been discussed.

The 10 Street site is appropriate for a combination of two “spacious” homes to accommodate families and two smaller homes for singles or single parent families that can better “blend” into the city of Del Mar.

Let’s not let a number count be the determinant of this permanent housing solution.

Thank you,
Julie Maxey-Allison
10 Street
Attachment C 56 October 20, 2026 Item 9
1 Nestor Machado
From: G. Stuart Mendenhall
Sent: Wednesday, September 23, 2026 2:37 PM
To: Ashley Jones
Cc: Julie Maxey; *City Council Group; Meghan Spieker; ; Jeff Sturgis; Rick and Joy Ehrenfeld; Ethel and Danny Grant; Becky Carroll; Edita Donnelly; Mark Maggenti; ulla rang; Karen Brindley; Amanda Lee; Nestor Machado Subject: re: 10th Street low income housing
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

September 23, 2026
I am very concerned that the stock answers that seem to imply the city manager and council are not listening to the citizens.

I strongly argue that nothing should be built on that tiny lot at this time.

Do not do it. Do not build impractical ultra-dense housing.

Having a small remnant of nature where we can have a few trees and fauna, kids can see grass and bushes, and pets can touch something other than hot concrete under their paws, is essential to good city design. It is good for the health of all residents. It's good for the physical and mental health of neighbors. It's even good for the health of those that work at the Civic Center.

Do we want a livable beautiful city, or performative compliance? One small lot, hurting the surrounding community, is not what the state or city needs. It helps nobody and doesn't satisfy requirements anyway.

A real, sustainable solution consists of building an environmentally efficient complex that can house 100+ people next to transportation, near the fairgrounds. As city council persons you can make a difference. But this is NOT the way.

Whether 4, 6, or 8 units on this tiny area the size of an R1, this destruction of that city lot does not provide meaningful benefit other than to the few lucky people that secure a below-market transient benefit in effectively slum housing.

It has not been explained who will receive the artificially low rent apartments other than platitudes of 'teachers and firefighters'. Age discrimination is illegal, with very narrow exceptions. Racial, sex, or other protected class discrimination is illegal.

The average teacher salary for San Diego is $105,000 per year. San Diego district *starting* salary range is $58,600 for the 2024-5 school year. One of our employees is married to a firefighter who earns $150,000 per year.

Attachment C 57 October 20, 2026 Item 9
2 Who are these mythical 'teachers and firefighters?' They won't be living there, because they won't qualify. To argue so is to be either misinformed or disingenuous.

This wording for certain 'types' of persons, both by city council members and those advocating, is worrisome. Will subletting be expressly prohibited? Is the city going to enforce the proper use and monitor who is actually living in the units?
One more time, discrimination is illegal and immoral. Restrictions on ‘use’ to certain desirable 'occupations' and continued talk about occupational restrictions puts the city council, and thus the city, at great risk.

The proposed cramped Del Mar complex built on that lot will lead to easily foreseeable problems.

It is human nature to get territorial, and this could go in both directions. The multitude of new renters, friends and visitors will use the civic center environs as their own common area as they have little own space, and may feel they have a right to primary use, and get used to daily enjoyment. It will become their beautiful all-day retreat with a view.

On the other hand, longstanding Del Mar residents, who opposed the construction of the below-market rental units, could feel they have more right to use of the beautiful area as they are those that finance it through taxes and market rate purchases.

Will the civic center allow the parking lot to be used for barbecues and parties when the Farmer's market is not in session? Eight units with a few friends creates several dozen people hanging out. There are rules on gathering restrictions of 25 people, but that is for single group, so multiple groups can easily overwhelm spaces.

We don't even have a police force. Nor do we want to need one.

Extremely low income tenants need access to affordable staples. Not walkable access to a trendy new high-end bar with a strict dress code, or gourmet pet food.

A great view won't put nutritious meals on the table. Unless the residents become entrepreneurial and airBNB the rental at market rates out for profit and live in more affordable area. How will the city detect this? Random checks and a network of snitches? Can a wealthy lawyer have their retired parent 'qualify' for the low income housing with near-zero income but access to millions? Will city council members and civic center staff exclude themselves, their families, and friends from qualifying for the housing, given their conflict of interest being on the governing committee? Instead of creating myriad problems, perhaps it is better to have sensible design and planning instead, and a city *listen* to its residents.

Remember, nobody can 'selectively enforce' use of the public area.

Solicitation and panhandling is considered public speech in California and may take place on Del Mar public property. Del Mar has no specific additional statutes. It is illegal to remove a nonAttachment C 58 October 20, 2026 Item 9 3 aggressive panhandler.

This will create a minefield. Again, don't do it.

Do not create the Del Mar slum house. Even if it is small.

I urge all city council persons to think of solutions, and not reflexively act to hurt the residents of their own city.

Make sustainable, maintainable, large scale affordable housing. To accomplish this and fulfill obligations in the interim, Del Mar may sponsor housing and units nearby in One Paseo, or numerous other areas effectively designed for high-density living, to fulfill the state-mandated obligation. This would be a fraction of the cost of the contractor building and city administering the Del Mar slums, and much more effective to help the many citizens of California in need, not just a "chosen" few.

G. Stuart Mendenhall, MD
Scripps Memorial Hospital - La Jolla
(10th Street, Del Mar, CA)
On Mon, Sep 21, 2026 at 8:37 PM Ashley Jones <[email protected]> wrote:

Hi Julie,
Thanks for sharing your thoughts and concerns regarding the City's plans for affordable housing at the 10th Street location. Staff are planning to bring forward an Exclusive Negotiating Rights Agreement (ENRA) with a proposed developer to the City Council for consideration on October 6. During the ENRA period, the City will work with the developer to conduct site due diligence activities and come up with a recommended scope of development (number of units, design, targeted resident population, parking, etc.) for Council consideration, all of which will be subject to public input and participation. I highly encourage you and the surrounding neighbors to stay engaged and participate throughout the process.

Best regards,
Ashley Jones
City Manager
City of Del Mar
(858) 704-3640 (Direct Line)
[email protected]
-----Original Message-----
From: Juliana Maxey-Allison < >
Sent: Monday, September 21, 2026 10:16 AM
To: Tracy Martinez <[email protected]>; Terry TG. Gaasterland <[email protected]>; Dan Quirk <[email protected]>; John Spelich <[email protected]>; Ashley Jones <[email protected]>
Cc: Meghan Spieker <[email protected]>; ; Jeff Sturgis < >; Rick and Joy Ehrenfeld < >; Ethel and Danny Grant
< >; G. Stuart Mendenhall < >; Becky Carroll
>; Edita Donnelly < >; Mark Maggenti
< >; ulla rang < >
Attachment C 59 October 20, 2026 Item 9
4 Subject: 10 Street low income housing proposal
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Attachment C 60 October 20, 2026 Item 9
1 Nestor Machado
From: ulla rang < >
Sent: Monday, October 5, 2026 3:45 PM
To: Ashley Jones
Cc: G. Stuart Mendenhall; Julie Maxey; Ethel and Danny Grant; Rick and Joy Ehrenfeld; Edita Donnelly; Mark Maggenti; Becky Carroll; *City Council Group; Meghan Spieker; ; Jeff Sturgis; Karen Brindley; Amanda Lee; Nestor Machado Subject: Re: City Response - Concerns Regarding 10th Street Affordable Housing CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Thank you for your response, Ashely, despite it showing that neither staff nor the Council is listening to the citizens.

Why does the small lot on 10th Street have to be developed into Very Low Affordable Housing? Or any housing at all? The city has plenty of areas down by Public Works that needs development and also the North Del Mar Economical District will more than likely be upzoned very soon. So why are we rushing into squeezing people in like sardines to the smallest available lot in Del Mar? Please answer these questions since that is what we all are wondering.

I also think is EXTREMELY unfair for the rentals of those 8 units to be singled out as Very Low Income people. They should be mixed in into other apartment complexes. It will be super embarrassing for them.

My mom grew up right after the war when Europeans were poor as dirt. Kids had to pay for their lunches in the school cafeteria but those without money instead got coupons to pay with. My mom was so embarrassed about being singled out as The Dirt Poor Kid. It is not right to people to bundle them up and single them out like that.It's like they will live in the house with the shame cone. It is not right and I will fight it. There are better ways to do it.

Please, answer my first paragraph since that is what we want answered. Why that tiny lot that can hardly even fit ONE regular house? And what is your reasoning around singling the poor people out and stuff them into one and the same building. What do you think that building will be named? Just take a wild guess. I think we all know it and who wants to be shamed like that? It is truly insane and a very, very bad solution.
/Camilla Rang
On Mon, Oct 5, 2026 at 2:59 PM Ashley Jones <[email protected]> wrote:

Dear 10th Street Neighbors,
Thank you for reaching out. In response to the communication below and others submitted to the City; I want to offer some additional information and insight. As part of the City’s certified 6th Cycle Housing Element, the City of Del Mar is required to develop the 10th Street lot at the Civic Center with affordable housing units. You can find more specific information on the City’s website at:

Attachment C 61 October 20, 2026 Item 9
2 https://www.delmar.ca.us/852/6th-Cycle-Housing-Element-Program-Implem. If the City fails to achieve issuance of building permits for development of the 10th Street lot by December 2027, we will face serious legal repercussions from the State. This being the case, the issue at hand is not whether to develop the site, but to ensure it is developed in a way that minimizes impacts and conforms to the character of the neighborhood.

What the City Council will be asked to decide as we move through the process is the scope of development for the site, which would include the number of units, target population (i.e. seniors, families, etc.); design of the project; dedicated parking spaces; project amenities; and how the property will be managed. Having worked on numerous affordable developments of all types in other communities, I want to assure you that there are provisions that the City can and will put in place to ensure the 10th Street property is well-managed and the rules are strictly enforced. The Council will be asked to approve a management plan and rules/regulations for the property, which will address many of the concerns raised. Residents will have assigned parking spaces that they will be required to use or face enforcement; they will be required to keep the exterior of their units clean and tidy; they will be limited as to the activities that can occur on the property (visitors, parties, etc.); and much more. The goal is to develop the site and place residents there that will enhance and blend into the community.

Once we get further along in the process, I would be happy to provide examples of very well managed and run affordable housing developments in San Diego that would be similar to what will be built in Del Mar, so you can check them out for yourself and maybe we can even schedule a tour.

As I’ve mentioned in prior communications, this process is just starting and there will be lots of opportunity for public input throughout. Bringing an Exclusive Negotiating Rights Agreement (ENRA) and Predevelopment Funding Agreement to the Council on 10/20 for approval is just the first step.

Best regards,
Ashley Jones
City Manager
City of Del Mar
(858) 704-3640 (Direct Line)
[email protected]
Attachment C 62 October 20, 2026 Item 9
3 From: G. Stuart Mendenhall < >
Sent: Wednesday, September 23, 2026 2:37 PM
To: Ashley Jones <[email protected]>
Cc: Julie Maxey < >; *City Council Group <[email protected]>; Meghan Spieker <[email protected]>; ; Jeff Sturgis < >; Rick and Joy Ehrenfeld < >; Ethel and Danny Grant >; Becky Carroll
< >; Edita Donnelly < >; Mark Maggenti < >;
ulla rang < >; Karen Brindley <[email protected]>; Amanda Lee <[email protected]>; Nestor Machado <[email protected]>
Subject: re: 10th Street low income housing
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

September 23, 2026
I am very concerned that the stock answers that seem to imply the city manager and council are not listening to the citizens.

I strongly argue that nothing should be built on that tiny lot at this time.

Do not do it. Do not build impractical ultra-dense housing.

Having a small remnant of nature where we can have a few trees and fauna, kids can see grass and bushes, and pets can touch something other than hot concrete under their paws, is essential to good city design. It is good for the health of all residents. It's good for the physical and mental health of neighbors. It's even good for the health of those that work at the Civic Center.

Do we want a livable beautiful city, or performative compliance? One small lot, hurting the surrounding community, is not what the state or city needs. It helps nobody and doesn't satisfy requirements anyway.

A real, sustainable solution consists of building an environmentally efficient complex that can house 100+ people next to transportation, near the fairgrounds. As city council persons you can make a difference. But this is NOT the way.

Whether 4, 6, or 8 units on this tiny area the size of an R1, this destruction of that city lot does not provide meaningful benefit other than to the few lucky people that secure a below-market transient benefit in effectively slum housing.

Attachment C 63 October 20, 2026 Item 9
4 It has not been explained who will receive the artificially low rent apartments other than platitudes of 'teachers and firefighters'. Age discrimination is illegal, with very narrow exceptions. Racial, sex, or other protected class discrimination is illegal.

The average teacher salary for San Diego is $105,000 per year. San Diego district *starting* salary range is $58,600 for the 2024-5 school year. One of our employees is married to a firefighter who earns $150,000 per year.

Who are these mythical 'teachers and firefighters?' They won't be living there, because they won't qualify. To argue so is to be either misinformed or disingenuous.

This wording for certain 'types' of persons, both by city council members and those advocating, is worrisome. Will subletting be expressly prohibited? Is the city going to enforce the proper use and monitor who is actually living in the units?
One more time, discrimination is illegal and immoral. Restrictions on ‘use’ to certain desirable 'occupations' and continued talk about occupational restrictions puts the city council, and thus the city, at great risk.

The proposed cramped Del Mar complex built on that lot will lead to easily foreseeable problems.

It is human nature to get territorial, and this could go in both directions. The multitude of new renters, friends and visitors will use the civic center environs as their own common area as they have little own space, and may feel they have a right to primary use, and get used to daily enjoyment. It will become their beautiful all-day retreat with a view.

On the other hand, longstanding Del Mar residents, who opposed the construction of the below-market rental units, could feel they have more right to use of the beautiful area as they are those that finance it through taxes and market rate purchases.

Will the civic center allow the parking lot to be used for barbecues and parties when the Farmer's market is not in session? Eight units with a few friends creates several dozen people hanging out. There are rules on gathering restrictions of 25 people, but that is for single group, so multiple groups can easily overwhelm spaces.

We don't even have a police force. Nor do we want to need one.

Extremely low income tenants need access to affordable staples. Not walkable access to a trendy new high-end bar with a strict dress code, or gourmet pet food.

A great view won't put nutritious meals on the table. Unless the residents become entrepreneurial and airBNB the rental at market rates out for profit and live in more affordable area. How will the city detect this? Random checks and a network of snitches? Can a wealthy lawyer have their retired parent 'qualify' for the low income housing with near-zero income but access to millions? Will city council members and civic center staff exclude themselves, their families, and friends from qualifying for the housing, given their conflict of interest being on the governing committee? Attachment C 64 October 20, 2026 Item 9
5 Instead of creating myriad problems, perhaps it is better to have sensible design and planning instead, and a city *listen* to its residents.

Remember, nobody can 'selectively enforce' use of the public area.

Solicitation and panhandling is considered public speech in California and may take place on Del Mar public property. Del Mar has no specific additional statutes. It is illegal to remove a nonaggressive panhandler.

This will create a minefield. Again, don't do it.

Do not create the Del Mar slum house. Even if it is small.

I urge all city council persons to think of solutions, and not reflexively act to hurt the residents of their own city.

Make sustainable, maintainable, large scale affordable housing. To accomplish this and fulfill obligations in the interim, Del Mar may sponsor housing and units nearby in One Paseo, or numerous other areas effectively designed for high-density living, to fulfill the state-mandated obligation. This would be a fraction of the cost of the contractor building and city administering the Del Mar slums, and much more effective to help the many citizens of California in need, not just a "chosen" few.

G. Stuart Mendenhall, MD
Scripps Memorial Hospital - La Jolla
(10th Street, Del Mar, CA)
On Mon, Sep 21, 2026 at 8:37 PM Ashley Jones <[email protected]> wrote:

Hi Julie,
Thanks for sharing your thoughts and concerns regarding the City's plans for affordable housing at the 10th Street location. Staff are planning to bring forward an Exclusive Negotiating Rights Agreement (ENRA) with a proposed developer to the City Council for consideration on October 6. During the ENRA period, the City will work with the developer to conduct site due diligence activities and come up with a recommended scope of development (number of units, design, targeted resident population, parking, etc.) for Council consideration, all of which will be subject to public input and participation. I highly encourage you and the surrounding neighbors to stay engaged and participate throughout the process.

Best regards,
Ashley Jones
City Manager
City of Del Mar
(858) 704-3640 (Direct Line)
Attachment C 65 October 20, 2026 Item 9
6 [email protected]
-----Original Message-----
From: Juliana Maxey-Allison < >
Sent: Monday, September 21, 2026 10:16 AM
To: Tracy Martinez <[email protected]>; Terry TG. Gaasterland <[email protected]>; Dan Quirk <[email protected]>; John Spelich <[email protected]>; Ashley Jones <[email protected]>
Cc: Meghan Spieker <[email protected]>; ; Jeff Sturgis < >; Rick and Joy Ehrenfeld < >; Ethel and Danny Grant
< >; G. Stuart Mendenhall < >; Becky Carroll
< >; Edita Donnelly < >; Mark Maggenti
< >; ulla rang < >
Subject: 10 Street low income housing proposal
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Attachment C 66 October 20, 2026 Item 9
1 Nestor Machado
From: Joy Ehrenfeld < >
Sent: Monday, October 5, 2026 4:52 PM
To: Ashley Jones
Cc: Mark Maggenti; *City Council Group; Tracy Martinez; John Spelich; Terry Gaasterland; Dan Quirk; Meghan Spieker; Jeff Sturgis; [email protected]; ulla rang; Julie Maxey; G. Stuart Mendenhall; Becky Carroll; ; Andrew Blumenfeld; Jeanne Blumenfeld; Jennifer M.; Ethel and Danny Grant; Rick; Karen Brindley; Amanda Lee; Nestor Machado;
Subject: Re: City Response - Concerns Regarding 10th Street Affordable Housing CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Thanks Ashley,
Your claims that the City can enforce where these low income tenants park, and punish them for parking on the street, for having a big party, for having lots of guests over are probably unconstitutional? All we have are code enforcement and the Sheriff, just like everyone other citizen in Del Mar. Maybe one of the 5 lawyers above can weigh in on this?
Joy
On Oct 5, 2026, at 4:37 PM, Ashley Jones <[email protected]> wrote:

Thanks for the following up, Joy and Mark. What I was referring to is providing examples of, and potentially touring, other established affordable housing developments (either senior or multi-family – once that determination has been made by the Council) to see how they are maintained and managed since we have heard a lot of concerns about potential noise, parking, and maintenance issues. And, in doing that, we can certainly try to identify examples that would be smaller in size. Best regards, Ashley From: Mark Maggenti < >
Sent: Monday, October 5, 2026 4:26 PM
To: Joy Ehrenfeld >
Cc: Ashley Jones <[email protected]>; *City Council Group <[email protected]>; Tracy Martinez <[email protected]>; John Spelich <[email protected]>; Terry Gaasterland <[email protected]>; Dan Quirk <[email protected]>; Meghan Spieker <[email protected]>; Jeff Sturgis >; [email protected]; ulla rang < ; Julie Maxey ; G. Stuart Mendenhall
< >; Becky Carroll < >; ; Andrew
Blumenfeld < >; Jeanne Blumenfeld >; Jennifer
M. < ; Ethel and Danny Grant < >; Rick
< >; Karen Brindley <[email protected]>; Amanda Lee <[email protected]>; Nestor Machado <[email protected]>; Subject: Re: City Response - Concerns Regarding 10th Street Affordable Housing Attachment C 67 October 20, 2026 Item 9
2 CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

I think Joy's suggestion is perfect. One way to highlight the similarity to the 10th St project numerically would be to show the density (units/acre) of all these other properties. For reference, I believe your current proposal for 10th St is 80 units/acre.
- Mark Maggenti
On Mon, Oct 5, 2026 at 4:09 PM Joy Ehrenfeld < > wrote:

Hello Ashley,
I’d like to take you up on your offer now rather than later to supply us with a list of very low income, studio apartments in SD that are very well run and fit into a nice residential neighborhood. Something with 8 units or more on a lot of this size or smaller, managed by a private company.

Thanks,
Joy Shadle Ehrenfeld
---------- Forwarded message ---------
From: Ashley Jones <[email protected]>
Date: Mon, Oct 5, 2026 at 2:59 PM
Subject: City Response - Concerns Regarding 10th Street Affordable Housing To: G. Stuart Mendenhall < >, Julie Maxey
< >, Ethel and Danny Grant < >, Rick
and Joy Ehrenfeld >, Edita Donnelly
< >, Mark Maggenti < >, Becky
Carroll < >, ulla rang >
CC: *City Council Group <[email protected]>, Meghan Spieker <[email protected]>, >,
Jeff Sturgis < >, Karen Brindley <[email protected]>, Amanda Lee <[email protected]>, Nestor Machado <[email protected]> Dear 10th Street Neighbors,
Thank you for reaching out. In response to the communication below and others submitted to the City; I want to offer some additional information and insight. As part of the City’s certified 6th Cycle Housing Element, the City of Del Mar is required to develop the 10th Street lot at the Civic Center with affordable housing units. You can find more specific information on the City’s website at:
https://www.delmar.ca.us/852/6th-Cycle-Housing-Element-Program-Implem. If the City fails to achieve issuance of building permits for development of the 10thStreet lot by December 2027, we will face serious legal repercussions from the State. This being the case, the issue at hand is not whether to develop the site, but to ensure it is developed in a way that minimizes impacts and conforms to the character of the neighborhood.

What the City Council will be asked to decide as we move through the process is the scope of development for the site, which would include the number of units, target population (i.e. seniors, families, etc.); design of the project; Attachment C 68 October 20, 2026 Item 9
3 dedicated parking spaces; project amenities; and how the property will be managed. Having worked on numerous affordable developments of all types in other communities, I want to assure you that there are provisions that the City can and will put in place to ensure the 10th Street property is well-managed and the rules are strictly enforced. The Council will be asked to approve a management plan and rules/regulations for the property, which will address many of the concerns raised. Residents will have assigned parking spaces that they will be required to use or face enforcement; they will be required to keep the exterior of their units clean and tidy; they will be limited as to the activities that can occur on the property (visitors, parties, etc.); and much more. The goal is to develop the site and place residents there that will enhance and blend into the community.

Once we get further along in the process, I would be happy to provide examples of very well managed and run affordable housing developments in San Diego that would be similar to what will be built in Del Mar, so you can check them out for yourself and maybe we can even schedule a tour.

As I’ve mentioned in prior communications, this process is just starting and there will be lots of opportunity for public input throughout. Bringing an Exclusive Negotiating Rights Agreement (ENRA) and Predevelopment Funding Agreement to the Council on 10/20 for approval is just the first step.

Best regards,
Ashley Jones
City Manager
City of Del Mar
(858) 704-3640 (Direct Line)
[email protected]
From: G. Stuart Mendenhall >
Sent: Wednesday, September 23, 2026 2:37 PM
To: Ashley Jones <[email protected]>
Cc: Julie Maxey < >; *City Council Group
<[email protected]>; Meghan Spieker
<[email protected]>; ; Jeff Sturgis
< >; Rick and Joy Ehrenfeld < >; Ethel and
Danny Grant < >; Becky Carroll < >; Edita
Donnelly < >; Mark Maggenti < >;
ulla rang >; Karen Brindley <[email protected]>; Amanda Lee <[email protected]>; Nestor Machado <[email protected]> Subject: re: 10th Street low income housing
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

September 23, 2026
I am very concerned that the stock answers that seem to imply the city manager and council are not listening to the citizens.

I strongly argue that nothing should be built on that tiny lot at this time.

Attachment C 69 October 20, 2026 Item 9
4 Do not do it. Do not build impractical ultra-dense housing.

Having a small remnant of nature where we can have a few trees and fauna, kids can see grass and bushes, and pets can touch something other than hot concrete under their paws, is essential to good city design. It is good for the health of all residents. It's good for the physical and mental health of neighbors. It's even good for the health of those that work at the Civic Center.

Do we want a livable beautiful city, or performative compliance? One small lot, hurting the surrounding community, is not what the state or city needs. It helps nobody and doesn't satisfy requirements anyway.

A real, sustainable solution consists of building an environmentally efficient complex that can house 100+ people next to transportation, near the fairgrounds. As city council persons you can make a difference. But this is NOT the way.

Whether 4, 6, or 8 units on this tiny area the size of an R1, this destruction of that city lot does not provide meaningful benefit other than to the few lucky people that secure a below-market transient benefit in effectively slum housing.

It has not been explained who will receive the artificially low rent apartments other than platitudes of 'teachers and firefighters'. Age discrimination is illegal, with very narrow exceptions. Racial, sex, or other protected class discrimination is illegal.

The average teacher salary for San Diego is $105,000 per year. San Diego district *starting* salary range is $58,600 for the 2024-5 school year. One of our employees is married to a firefighter who earns $150,000 per year.

Who are these mythical 'teachers and firefighters?' They won't be living there, because they won't qualify. To argue so is to be either misinformed or disingenuous.

This wording for certain 'types' of persons, both by city council members and those advocating, is worrisome. Will subletting be expressly prohibited? Is the city going to enforce the proper use and monitor who is actually living in the units? One more time, discrimination is illegal and immoral. Restrictions on ‘use’ to certain desirable 'occupations' and continued talk about occupational restrictions puts the city council, and thus the city, at great risk.

The proposed cramped Del Mar complex built on that lot will lead to easily foreseeable problems.

It is human nature to get territorial, and this could go in both directions. The multitude of new renters, friends and visitors will use the civic center environs as their own common area as they have little own space, and may feel they have a right to primary use, and get used to daily enjoyment. It will become their beautiful all-day retreat with a view.

On the other hand, longstanding Del Mar residents, who opposed the construction of the below-market rental units, could feel they have more right to use of the beautiful Attachment C 70 October 20, 2026 Item 9
5 area as they are those that finance it through taxes and market rate purchases.

Will the civic center allow the parking lot to be used for barbecues and parties when the Farmer's market is not in session? Eight units with a few friends creates several dozen people hanging out. There are rules on gathering restrictions of 25 people, but that is for single group, so multiple groups can easily overwhelm spaces.

We don't even have a police force. Nor do we want to need one.

Extremely low income tenants need access to affordable staples. Not walkable access to a trendy new high-end bar with a strict dress code, or gourmet pet food.

A great view won't put nutritious meals on the table. Unless the residents become entrepreneurial and airBNB the rental at market rates out for profit and live in more affordable area. How will the city detect this? Random checks and a network of snitches? Can a wealthy lawyer have their retired parent 'qualify' for the low income housing with near-zero income but access to millions?
Will city council members and civic center staff exclude themselves, their families, and friends from qualifying for the housing, given their conflict of interest being on the governing committee?
Instead of creating myriad problems, perhaps it is better to have sensible design and planning instead, and a city *listen* to its residents.

Remember, nobody can 'selectively enforce' use of the public area.

Solicitation and panhandling is considered public speech in California and may take place on Del Mar public property. Del Mar has no specific additional statutes. It is illegal to remove a non-aggressive panhandler.

This will create a minefield. Again, don't do it.

Do not create the Del Mar slum house. Even if it is small.

I urge all city council persons to think of solutions, and not reflexively act to hurt the residents of their own city.

Make sustainable, maintainable, large scale affordable housing. To accomplish this and fulfill obligations in the interim, Del Mar may sponsor housing and units nearby in One Paseo, or numerous other areas effectively designed for high-density living, to fulfill the state-mandated obligation. This would be a fraction of the cost of the contractor building and city administering the Del Mar slums, and much more effective to help the many citizens of California in need, not just a "chosen" few.

G. Stuart Mendenhall, MD
Scripps Memorial Hospital - La Jolla
(10th Street, Del Mar, CA)
On Mon, Sep 21, 2026 at 8:37 PM Ashley Jones <[email protected]> wrote:

Attachment C 71 October 20, 2026 Item 9
6 Hi Julie,
Thanks for sharing your thoughts and concerns regarding the City's plans for affordable housing at the 10th Street location. Staff are planning to bring forward an Exclusive Negotiating Rights Agreement (ENRA) with a proposed developer to the City Council for consideration on October 6. During the ENRA period, the City will work with the developer to conduct site due diligence activities and come up with a recommended scope of development (number of units, design, targeted resident population, parking, etc.) for Council consideration, all of which will be subject to public input and participation. I highly encourage you and the surrounding neighbors to stay engaged and participate throughout the process.

Best regards,
Ashley Jones
City Manager
City of Del Mar
(858) 704-3640 (Direct Line)
[email protected]
-----Original Message-----
From: Juliana Maxey-Allison < >
Sent: Monday, September 21, 2026 10:16 AM
To: Tracy Martinez <[email protected]>; Terry TG. Gaasterland <[email protected]>; Dan Quirk <[email protected]>; John Spelich <[email protected]>; Ashley Jones <[email protected]> Cc: Meghan Spieker <[email protected]> Jeff
Sturgis < >; Rick and Joy Ehrenfeld >;
Ethel and Danny Grant < >; G. Stuart Mendenhall
< >; Becky Carroll < >; Edita Donnelly
< >; Mark Maggenti < >; ulla rang
< >
Subject: 10 Street low income housing proposal
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Attachment C 72 October 20, 2026 Item 9
1 Nestor Machado
From: JoyDelMar < >
Sent: Monday, October 5, 2026 5:20 PM
To: Ashley Jones
Cc: Mark Maggenti; *City Council Group; Tracy Martinez; John Spelich; Terry Gaasterland; Dan Quirk; Meghan Spieker; Jeff Sturgis; [email protected]; ulla rang; Julie Maxey; G. Stuart Mendenhall; Becky Carroll; ; Andrew Blumenfeld; Jeanne Blumenfeld; Jennifer M.; Ethel and Danny Grant; Rick; Karen Brindley; Amanda Lee; Nestor Machado;
Subject: Re: City Response - Concerns Regarding 10th Street Affordable Housing CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Thanks Ashley, in my experience rules and regulations only work when there is motivation to enforce them and that will be lacking. You are going to keep track of all the cars and who owns them check to see if they are on the street? Then ticket them?
I lived through the construction of City Hall and rules and regulations were NOT enforced! Everyone including code enforcement, parking enforcement, city management etc all looked the other way! Numerous violations occurred almost on a daily basis, I just gave up complaining.

Joy
Sent from my iPhone
On Oct 5, 2026, at 5:09 PM, Ashley Jones <[email protected]> wrote:

Hi Joy,
I can assure you that rules and regulations for tenancy at affordable housing developments as I’ve described are absolutely legal and common place. We have a specialized affordable housing legal counsel with Goldfarb & Lipman that can speak to this as we get to that part of the process, and that is what I have known through my experience with affordable housing and redevelopment projects in other communities. There will be a dedicated property management firm overseeing the property, and we will have a lot of eyes on what is going on there due to it’s proximity to City Hall.

Best regards,
Ashley Jones
City Manager
City of Del Mar
1050 Camino Del Mar
Del Mar, CA 92014
(858) 704-3640
[email protected]
Attachment C 73 October 20, 2026 Item 9
2 From: Joy Ehrenfeld <
Sent: Monday, October 5, 2026 4:52 PM
To: Ashley Jones <[email protected]>
Cc: Mark Maggenti < >; *City Council Group
<[email protected]>; Tracy Martinez <[email protected]>; John Spelich <[email protected]>; Terry Gaasterland <[email protected]>; Dan Quirk <[email protected]>; Meghan Spieker <[email protected]>; Jeff Sturgis < >; [email protected]; ulla rang >; Julie Maxey
>; G. Stuart Mendenhall < >; Becky Carroll
< >; ; Andrew Blumenfeld < >;
Jeanne Blumenfeld < ; Jennifer M. < >; Ethel and
Danny Grant < Rick >; Karen Brindley
<[email protected]>; Amanda Lee <[email protected]>; Nestor Machado <[email protected]>;
Subject: Re: City Response - Concerns Regarding 10th Street Affordable Housing CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Thanks Ashley,
Your claims that the City can enforce where these low income tenants park, and punish them for parking on the street, for having a big party, for having lots of guests over are probably unconstitutional? All we have are code enforcement and the Sheriff, just like everyone other citizen in Del Mar. Maybe one of the 5 lawyers above can weigh in on this?
Joy
On Oct 5, 2026, at 4:37 PM, Ashley Jones <[email protected]> wrote:

Thanks for the following up, Joy and Mark. What I was referring to is providing examples of, and potentially touring, other established affordable housing developments (either senior or multi-family – once that determination has been made by the Council) to see how they are maintained and managed since we have heard a lot of concerns about potential noise, parking, and maintenance issues. And, in doing that, we can certainly try to identify examples that would be smaller in size. Best regards, Ashley
From: Mark Maggenti <
Sent: Monday, October 5, 2026 4:26 PM
To: Joy Ehrenfeld >
Cc: Ashley Jones <[email protected]>; *City Council Group <[email protected]>; Tracy Martinez <[email protected]>; John Spelich <[email protected]>; Terry Gaasterland <[email protected]>; Dan Quirk <[email protected]>; Meghan Spieker <[email protected]>; Jeff Sturgis < >; [email protected]; ulla rang
< >; Julie Maxey < >; G. Stuart Mendenhall
< >; Becky Carroll
< ; Andrew Blumenfeld
< >; Jeanne Blumenfeld >;
Attachment C 74 October 20, 2026 Item 9
3 Jennifer M. < >; Ethel and Danny Grant
>; Rick < >; Karen Brindley
<[email protected]>; Amanda Lee <[email protected]>; Nestor Machado <[email protected]>;
Subject: Re: City Response - Concerns Regarding 10th Street Affordable Housing CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

I think Joy's suggestion is perfect. One way to highlight the similarity to the 10th St project numerically would be to show the density (units/acre) of all these other properties. For reference, I believe your current proposal for 10th St is 80 units/acre.
- Mark Maggenti
On Mon, Oct 5, 2026 at 4:09 PM Joy Ehrenfeld < > wrote:

Hello Ashley,
I’d like to take you up on your offer now rather than later to supply us with a list of very low income, studio apartments in SD that are very well run and fit into a nice residential neighborhood. Something with 8 units or more on a lot of this size or smaller, managed by a private company.

Thanks,
Joy Shadle Ehrenfeld
---------- Forwarded message ---------
From: Ashley Jones <[email protected]>
Date: Mon, Oct 5, 2026 at 2:59 PM
Subject: City Response - Concerns Regarding 10th Street Affordable Housing
To: G. Stuart Mendenhall < , Julie Maxey
>, Ethel and Danny Grant
< , Rick and Joy Ehrenfeld
< >, Edita Donnelly
< >, Mark Maggenti
< , Becky Carroll < >,
ulla rang >
CC: *City Council Group <[email protected]>, Meghan Spieker
<[email protected]>,
Jeff Sturgis >, Karen Brindley
<[email protected]>, Amanda Lee <[email protected]>, Nestor Machado <[email protected]>
Dear 10th Street Neighbors,
Attachment C 75 October 20, 2026 Item 9
4 Thank you for reaching out. In response to the communication below and others submitted to the City; I want to offer some additional information and insight. As part of the City’s certified 6 th Cycle Housing Element, the City of Del Mar is required to develop the 10th Street lot at the Civic Center with affordable housing units. You can find more specific information on the City’s website at:
https://www.delmar.ca.us/852/6th-Cycle-Housing-ElementProgram-Implem. If the City fails to achieve issuance of building permits for development of the 10thStreet lot by December 2027, we will face serious legal repercussions from the State. This being the case, the issue at hand is not whether to develop the site, but to ensure it is developed in a way that minimizes impacts and conforms to the character of the neighborhood.

What the City Council will be asked to decide as we move through the process is the scope of development for the site, which would include the number of units, target population (i.e. seniors, families, etc.); design of the project; dedicated parking spaces; project amenities; and how the property will be managed. Having worked on numerous affordable developments of all types in other communities, I want to assure you that there are provisions that the City can and will put in place to ensure the 10th Street property is well-managed and the rules are strictly enforced. The Council will be asked to approve a management plan and rules/regulations for the property, which will address many of the concerns raised. Residents will have assigned parking spaces that they will be required to use or face enforcement; they will be required to keep the exterior of their units clean and tidy; they will be limited as to the activities that can occur on the property (visitors, parties, etc.); and much more. The goal is to develop the site and place residents there that will enhance and blend into the community.

Once we get further along in the process, I would be happy to provide examples of very well managed and run affordable housing developments in San Diego that would be similar to what will be built in Del Mar, so you can check them out for yourself and maybe we can even schedule a tour.

As I’ve mentioned in prior communications, this process is just starting and there will be lots of opportunity for public input throughout. Bringing an Exclusive Negotiating Rights Agreement (ENRA) and Predevelopment Funding Agreement to the Council on 10/20 for approval is just the first step.

Best regards,
Ashley Jones
City Manager
City of Del Mar
(858) 704-3640 (Direct Line)
[email protected]
Attachment C 76 October 20, 2026 Item 9
5 From: G. Stuart Mendenhall < >
Sent: Wednesday, September 23, 2026 2:37 PM
To: Ashley Jones <[email protected]>
Cc: Julie Maxey < >; *City Council Group
<[email protected]>; Meghan Spieker
<[email protected]>; ; Jeff Sturgis
< >; Rick and Joy Ehrenfeld
>; Ethel and Danny Grant
>; Becky Carroll < >;
Edita Donnelly < >; Mark Maggenti
< >; ulla rang < >; Karen
Brindley <[email protected]>; Amanda Lee
<[email protected]>; Nestor Machado <[email protected]> Subject: re: 10th Street low income housing
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

September 23, 2026
I am very concerned that the stock answers that seem to imply the city manager and council are not listening to the citizens.

I strongly argue that nothing should be built on that tiny lot at this time.

Do not do it. Do not build impractical ultra-dense housing.

Having a small remnant of nature where we can have a few trees and fauna, kids can see grass and bushes, and pets can touch something other than hot concrete under their paws, is essential to good city design. It is good for the health of all residents. It's good for the physical and mental health of neighbors. It's even good for the health of those that work at the Civic Center.

Do we want a livable beautiful city, or performative compliance? One small lot, hurting the surrounding community, is not what the state or city needs. It helps nobody and doesn't satisfy requirements anyway.

A real, sustainable solution consists of building an environmentally efficient complex that can house 100+ people next to transportation, near the fairgrounds. As city council persons you can make a difference. But this is NOT the way.

Whether 4, 6, or 8 units on this tiny area the size of an R1, this destruction of that city lot does not provide meaningful benefit other than to the few lucky people that secure a below-market transient benefit in effectively slum housing.

Attachment C 77 October 20, 2026 Item 9
6 It has not been explained who will receive the artificially low rent apartments other than platitudes of 'teachers and firefighters'. Age discrimination is illegal, with very narrow exceptions. Racial, sex, or other protected class discrimination is illegal.

The average teacher salary for San Diego is $105,000 per year. San Diego district *starting* salary range is $58,600 for the 2024-5 school year. One of our employees is married to a firefighter who earns $150,000 per year.

Who are these mythical 'teachers and firefighters?' They won't be living there, because they won't qualify. To argue so is to be either misinformed or disingenuous.

This wording for certain 'types' of persons, both by city council members and those advocating, is worrisome. Will subletting be expressly prohibited? Is the city going to enforce the proper use and monitor who is actually living in the units?
One more time, discrimination is illegal and immoral. Restrictions on ‘use’ to certain desirable 'occupations' and continued talk about occupational restrictions puts the city council, and thus the city, at great risk.

The proposed cramped Del Mar complex built on that lot will lead to easily foreseeable problems.

It is human nature to get territorial, and this could go in both directions. The multitude of new renters, friends and visitors will use the civic center environs as their own common area as they have little own space, and may feel they have a right to primary use, and get used to daily enjoyment. It will become their beautiful all-day retreat with a view.

On the other hand, longstanding Del Mar residents, who opposed the construction of the below-market rental units, could feel they have more right to use of the beautiful area as they are those that finance it through taxes and market rate purchases.

Will the civic center allow the parking lot to be used for barbecues and parties when the Farmer's market is not in session? Eight units with a few friends creates several dozen people hanging out. There are rules on gathering restrictions of 25 people, but that is for single group, so multiple groups can easily overwhelm spaces.

We don't even have a police force. Nor do we want to need one.

Extremely low income tenants need access to affordable staples. Not walkable access to a trendy new high-end bar with a strict dress code, or gourmet pet food.

A great view won't put nutritious meals on the table. Unless the Attachment C 78 October 20, 2026 Item 9
7 residents become entrepreneurial and airBNB the rental at market rates out for profit and live in more affordable area. How will the city detect this? Random checks and a network of snitches? Can a wealthy lawyer have their retired parent 'qualify' for the low income housing with near-zero income but access to millions?
Will city council members and civic center staff exclude themselves, their families, and friends from qualifying for the housing, given their conflict of interest being on the governing committee?
Instead of creating myriad problems, perhaps it is better to have sensible design and planning instead, and a city *listen* to its residents.

Remember, nobody can 'selectively enforce' use of the public area.

Solicitation and panhandling is considered public speech in California and may take place on Del Mar public property. Del Mar has no specific additional statutes. It is illegal to remove a non-aggressive panhandler.

This will create a minefield. Again, don't do it.

Do not create the Del Mar slum house. Even if it is small.

I urge all city council persons to think of solutions, and not reflexively act to hurt the residents of their own city.

Make sustainable, maintainable, large scale affordable housing. To accomplish this and fulfill obligations in the interim, Del Mar may sponsor housing and units nearby in One Paseo, or numerous other areas effectively designed for high-density living, to fulfill the statemandated obligation. This would be a fraction of the cost of the contractor building and city administering the Del Mar slums, and much more effective to help the many citizens of California in need, not just a "chosen" few.

G. Stuart Mendenhall, MD
Scripps Memorial Hospital - La Jolla
(10th Street, Del Mar, CA)
On Mon, Sep 21, 2026 at 8:37 PM Ashley Jones <[email protected]> wrote:

Hi Julie,
Thanks for sharing your thoughts and concerns regarding the City's plans for affordable housing at the 10th Street location. Staff are planning to bring forward an Exclusive Negotiating Rights Agreement (ENRA) with a proposed developer to the City Council for consideration on October 6. During the ENRA period, the City will work with the developer to conduct site due diligence activities and come up with a recommended scope of development (number of Attachment C 79 October 20, 2026 Item 9
8 units, design, targeted resident population, parking, etc.) for Council consideration, all of which will be subject to public input and participation. I highly encourage you and the surrounding neighbors to stay engaged and participate throughout the process.

Best regards,
Ashley Jones
City Manager
City of Del Mar
(858) 704-3640 (Direct Line)
[email protected]
-----Original Message-----
From: Juliana Maxey-Allison < >
Sent: Monday, September 21, 2026 10:16 AM
To: Tracy Martinez <[email protected]>; Terry TG. Gaasterland <[email protected]>; Dan Quirk <[email protected]>; John Spelich <[email protected]>; Ashley Jones
<[email protected]>
Cc: Meghan Spieker
<[email protected]>; Jeff Sturgis
< >; Rick and Joy Ehrenfeld
< >; Ethel and Danny Grant
< >; G. Stuart Mendenhall
< >; Becky Carroll < >;
Edita Donnelly < >; Mark Maggenti
< ; ulla rang < >
Subject: 10 Street low income housing proposal
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Attachment C 80 October 20, 2026 Item 9
1 Nestor Machado
From: ulla rang < >
Sent: Monday, October 5, 2026 5:23 PM
To: Ashley Jones; Joy Ehrenfeld; Mark Maggenti; *City Council Group; Tracy Martinez; John Spelich; Terry Gaasterland; Dan Quirk; Meghan Spieker; Jeff Sturgis; [email protected]; ulla rang; Julie Maxey; G. Stuart Mendenhall; Becky Carroll; ; Andrew Blumenfeld; Jeanne Blumenfeld; Jennifer M.; Ethel and Danny Grant; Rick; Karen Brindley; Amanda Lee; Nestor Machado; Subject: Re: City Response - Concerns Regarding 10th Street Affordable Housing CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Thanks for response. Ashley.

It was never 8 units. That you sprung upon us in February.

And just because something seemed like a good idea some years ago, does not mean it is a good idea when all pieces fall in place years later. It should be reconsidered now that we have more information.

Floodplain only means that housing will have to be on 2nd floor and parking on 1st floor. Elevator will solve that issue for the tenants.

On Mon, Oct 5, 2026 at 5:19 PM ulla rang < > wrote:

Omg, I was laughing so much!!! "Maybe one of the 5 lawyers above can weigh in on this?" On Mon, Oct 5, 2026 at 5:09 PM Ashley Jones <[email protected]> wrote:

Hi Joy,
I can assure you that rules and regulations for tenancy at affordable housing developments as I’ve described are absolutely legal and common place. We have a specialized affordable housing legal counsel with Goldfarb & Lipman that can speak to this as we get to that part of the process, and that is what I have known through my experience with affordable housing and redevelopment projects in other communities. There will be a dedicated property management firm overseeing the property, and we will have a lot of eyes on what is going on there due to it’s proximity to City Hall.

Best regards,
Ashley Jones
City Manager
City of Del Mar
1050 Camino Del Mar
Attachment C 81 October 20, 2026 Item 9
2 Del Mar, CA 92014
(858) 704-3640
[email protected]
From: Joy Ehrenfeld >
Sent: Monday, October 5, 2026 4:52 PM
To: Ashley Jones <[email protected]>
Cc: Mark Maggenti < >; *City Council Group
<[email protected]>; Tracy Martinez <[email protected]>; John Spelich <[email protected]>; Terry Gaasterland <[email protected]>; Dan Quirk <[email protected]>; Meghan Spieker <[email protected]>; Jeff Sturgis < >; [email protected]; ulla rang < >; Julie Maxey
< ; G. Stuart Mendenhall < >; Becky Carroll
< >; ; Andrew Blumenfeld
< >; Jeanne Blumenfeld < >; Jennifer M.
>; Ethel and Danny Grant < >; Rick
< >; Karen Brindley <[email protected]>; Amanda Lee <[email protected]>; Nestor Machado <[email protected]>; Subject: Re: City Response - Concerns Regarding 10th Street Affordable Housing CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Thanks Ashley,
Your claims that the City can enforce where these low income tenants park, and punish them for parking on the street, for having a big party, for having lots of guests over are probably unconstitutional? All we have are code enforcement and the Sheriff, just like everyone other citizen in Del Mar. Maybe one of the 5 lawyers above can weigh in on this? Joy
On Oct 5, 2026, at 4:37 PM, Ashley Jones <[email protected]> wrote:

Thanks for the following up, Joy and Mark. What I was referring to is providing examples of, and potentially touring, other established affordable housing Attachment C 82 October 20, 2026 Item 9
3 developments (either senior or multi-family – once that determination has been made by the Council) to see how they are maintained and managed since we have heard a lot of concerns about potential noise, parking, and maintenance issues. And, in doing that, we can certainly try to identify examples that would be smaller in size. Best regards, Ashley
From: Mark Maggenti <
Sent: Monday, October 5, 2026 4:26 PM
To: Joy Ehrenfeld <
Cc: Ashley Jones <[email protected]>; *City Council Group <[email protected]>; Tracy Martinez <[email protected]>; John Spelich <[email protected]>; Terry Gaasterland <[email protected]>; Dan Quirk <[email protected]>; Meghan Spieker <[email protected]>; Jeff Sturgis < [email protected]; ulla rang
< Julie Maxey < ; G. Stuart Mendenhall
< >; Becky Carroll
< ; Andrew Blumenfeld
< >; Jeanne Blumenfeld < ;
Jennifer M. < >; Ethel and Danny Grant
< >; Rick >; Karen Brindley
<[email protected]>; Amanda Lee <[email protected]>; Nestor Machado <[email protected]>;
Subject: Re: City Response - Concerns Regarding 10th Street Affordable Housing CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

I think Joy's suggestion is perfect. One way to highlight the similarity to the 10th St project numerically would be to show the density (units/acre) of all these other properties. For reference, I believe your current proposal for 10th St is 80 units/acre.
- Mark Maggenti
On Mon, Oct 5, 2026 at 4:09 PM Joy Ehrenfeld < > wrote:

Hello Ashley,
Attachment C 83 October 20, 2026 Item 9
4 I’d like to take you up on your offer now rather than later to supply us with a list of very low income, studio apartments in SD that are very well run and fit into a nice residential neighborhood. Something with 8 units or more on a lot of this size or smaller, managed by a private company.

Thanks,
Joy Shadle Ehrenfeld
---------- Forwarded message ---------
From: Ashley Jones <[email protected]>
Date: Mon, Oct 5, 2026 at 2:59 PM
Subject: City Response - Concerns Regarding 10th Street Affordable Housing
To: G. Stuart Mendenhall < >, Julie Maxey
< >, Ethel and Danny Grant
< >, Rick and Joy Ehrenfeld
< >, Edita Donnelly
< >, Mark Maggenti
< >, Becky Carroll < >,
ulla rang < >
CC: *City Council Group <[email protected]>, Meghan Spieker
<[email protected]>, j
>, Jeff Sturgis >, Karen Brindley
<[email protected]>, Amanda Lee <[email protected]>, Nestor Machado <[email protected]>
Dear 10th Street Neighbors,
Thank you for reaching out. In response to the communication below and others submitted to the City; I want to offer some additional information and insight. As part of the City’s certified 6th Cycle Housing Element, the City of Del Mar is required to develop the 10th Street lot at the Civic Center with affordable housing units. You can find more specific information on the City’s website at:
https://www.delmar.ca.us/852/6th-Cycle-Housing-Element-ProgramImplem. If the City fails to achieve issuance of building permits for Attachment C 84 October 20, 2026 Item 9
5 development of the 10thStreet lot by December 2027, we will face serious legal repercussions from the State. This being the case, the issue at hand is not whether to develop the site, but to ensure it is developed in a way that minimizes impacts and conforms to the character of the neighborhood.

What the City Council will be asked to decide as we move through the process is the scope of development for the site, which would include the number of units, target population (i.e. seniors, families, etc.); design of the project; dedicated parking spaces; project amenities; and how the property will be managed. Having worked on numerous affordable developments of all types in other communities, I want to assure you that there are provisions that the City can and will put in place to ensure the 10th Street property is well-managed and the rules are strictly enforced. The Council will be asked to approve a management plan and rules/regulations for the property, which will address many of the concerns raised. Residents will have assigned parking spaces that they will be required to use or face enforcement; they will be required to keep the exterior of their units clean and tidy; they will be limited as to the activities that can occur on the property (visitors, parties, etc.); and much more. The goal is to develop the site and place residents there that will enhance and blend into the community.

Once we get further along in the process, I would be happy to provide examples of very well managed and run affordable housing developments in San Diego that would be similar to what will be built in Del Mar, so you can check them out for yourself and maybe we can even schedule a tour.

As I’ve mentioned in prior communications, this process is just starting and there will be lots of opportunity for public input throughout. Bringing an Exclusive Negotiating Rights Agreement (ENRA) and
Predevelopment Funding Agreement to the Council on 10/20 for approval is just the first step.

Best regards,
Ashley Jones
City Manager
Attachment C 85 October 20, 2026 Item 9
6 City of Del Mar
(858) 704-3640 (Direct Line)
[email protected]
From: G. Stuart Mendenhall <
Sent: Wednesday, September 23, 2026 2:37 PM
To: Ashley Jones <[email protected]>
Cc: Julie Maxey >; *City Council Group
<[email protected]>; Meghan Spieker
<[email protected]>; ; Jeff Sturgis
< >; Rick and Joy Ehrenfeld
< >; Ethel and Danny Grant
< ; Becky Carroll < ; Edita
Donnelly < >; Mark Maggenti
< >; ulla rang < >; Karen
Brindley <[email protected]>; Amanda Lee <[email protected]>; Nestor Machado <[email protected]>
Subject: re: 10th Street low income housing
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

September 23, 2026
I am very concerned that the stock answers that seem to imply the city manager and council are not listening to the citizens.

I strongly argue that nothing should be built on that tiny lot at this time.

Do not do it. Do not build impractical ultra-dense housing.

Having a small remnant of nature where we can have a few trees and fauna, kids can see grass and bushes, and pets can touch something other than hot concrete under their paws, is essential to good city Attachment C 86 October 20, 2026 Item 9
7 design. It is good for the health of all residents. It's good for the physical and mental health of neighbors. It's even good for the health of those that work at the Civic Center.

Do we want a livable beautiful city, or performative compliance? One small lot, hurting the surrounding community, is not what the state or city needs. It helps nobody and doesn't satisfy requirements anyway.

A real, sustainable solution consists of building an environmentally efficient complex that can house 100+ people next to transportation, near the fairgrounds. As city council persons you can make a difference. But this is NOT the way.

Whether 4, 6, or 8 units on this tiny area the size of an R1, this destruction of that city lot does not provide meaningful benefit other than to the few lucky people that secure a below-market transient benefit in effectively slum housing.

It has not been explained who will receive the artificially low rent apartments other than platitudes of 'teachers and firefighters'. Age discrimination is illegal, with very narrow exceptions. Racial, sex, or other protected class discrimination is illegal.

The average teacher salary for San Diego is $105,000 per year. San Diego district *starting* salary range is $58,600 for the 2024-5 school year. One of our employees is married to a firefighter who earns $150,000 per year.

Who are these mythical 'teachers and firefighters?' They won't be living there, because they won't qualify. To argue so is to be either misinformed or disingenuous.

This wording for certain 'types' of persons, both by city council members and those advocating, is worrisome. Will subletting be expressly prohibited? Is the city going to enforce the proper use and monitor who is actually living in the units?
One more time, discrimination is illegal and immoral. Restrictions on ‘use’ to certain desirable 'occupations' and continued talk about occupational restrictions puts the city council, and thus the city, at great risk.

The proposed cramped Del Mar complex built on that lot will lead to easily foreseeable problems.

It is human nature to get territorial, and this could go in both directions. The multitude of new renters, friends and visitors will use the civic center environs as their own common area as they have little own Attachment C 87 October 20, 2026 Item 9
8 space, and may feel they have a right to primary use, and get used to daily enjoyment. It will become their beautiful all-day retreat with a view.

On the other hand, longstanding Del Mar residents, who opposed the construction of the below-market rental units, could feel they have more right to use of the beautiful area as they are those that finance it through taxes and market rate purchases.

Will the civic center allow the parking lot to be used for barbecues and parties when the Farmer's market is not in session? Eight units with a few friends creates several dozen people hanging out. There are rules on gathering restrictions of 25 people, but that is for single group, so multiple groups can easily overwhelm spaces.

We don't even have a police force. Nor do we want to need one.

Extremely low income tenants need access to affordable staples. Not walkable access to a trendy new high-end bar with a strict dress code, or gourmet pet food.

A great view won't put nutritious meals on the table. Unless the residents become entrepreneurial and airBNB the rental at market rates out for profit and live in more affordable area. How will the city detect this? Random checks and a network of snitches? Can a wealthy lawyer have their retired parent 'qualify' for the low income housing with nearzero income but access to millions? Will city council members and civic center staff exclude themselves, their families, and friends from qualifying for the housing, given their conflict of interest being on the governing committee?
Instead of creating myriad problems, perhaps it is better to have sensible design and planning instead, and a city *listen* to its residents.

Remember, nobody can 'selectively enforce' use of the public area.

Solicitation and panhandling is considered public speech in California and may take place on Del Mar public property. Del Mar has no specific additional statutes. It is illegal to remove a non-aggressive panhandler.

This will create a minefield. Again, don't do it.

Do not create the Del Mar slum house. Even if it is small.

I urge all city council persons to think of solutions, and not reflexively act to hurt the residents of their own city.

Attachment C 88 October 20, 2026 Item 9
9 Make sustainable, maintainable, large scale affordable housing. To accomplish this and fulfill obligations in the interim, Del Mar may sponsor housing and units nearby in One Paseo, or numerous other areas effectively designed for high-density living, to fulfill the state-mandated obligation. This would be a fraction of the cost of the contractor building and city administering the Del Mar slums, and much more effective to help the many citizens of California in need, not just a "chosen" few.

G. Stuart Mendenhall, MD
Scripps Memorial Hospital - La Jolla
(10th Street, Del Mar, CA)
On Mon, Sep 21, 2026 at 8:37 PM Ashley Jones <[email protected]> wrote:

Hi Julie,
Thanks for sharing your thoughts and concerns regarding the City's plans for affordable housing at the 10th Street location. Staff are planning to bring forward an Exclusive Negotiating Rights Agreement (ENRA) with a proposed developer to the City Council for consideration on October

6. During the ENRA period, the City will work with the developer to conduct site due diligence activities and come up with a recommended scope of development (number of units, design, targeted resident population, parking, etc.) for Council consideration, all of which will be subject to public input and participation. I highly encourage you and the surrounding neighbors to stay engaged and participate throughout the process.

Best regards,
Ashley Jones
City Manager
City of Del Mar
(858) 704-3640 (Direct Line)
[email protected]
-----Original Message-----
From: Juliana Maxey-Allison >
Sent: Monday, September 21, 2026 10:16 AM
To: Tracy Martinez <[email protected]>; Terry TG. Gaasterland <[email protected]>; Dan Quirk <[email protected]>; John Spelich <[email protected]>; Ashley Jones <[email protected]> Cc: Meghan Spieker
Attachment C 89 October 20, 2026 Item 9
10 <[email protected]>; Jeff Sturgis
>; Rick and Joy Ehrenfeld
< >; Ethel and Danny Grant
< >; G. Stuart Mendenhall
< >; Becky Carroll >; Edita
Donnelly < >; Mark Maggenti
>; ulla rang <
Subject: 10 Street low income housing proposal
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Attachment C 90 October 20, 2026 Item 9
1 Nestor Machado
From: G. Stuart Mendenhall < >
Sent: Wednesday, October 7, 2026 5:49 PM
To: Ashley Jones
Cc: ulla rang; Ethel Grant; JoyDelMar; Mark Maggenti; *City Council Group; Tracy Martinez; John Spelich; Terry Gaasterland; Dan Quirk; Meghan Spieker; Jeff Sturgis; [email protected]; Julie Maxey; Becky Carroll; ; Andrew Blumenfeld; Jeanne Blumenfeld; Jennifer M.; Rick; Karen Brindley; Amanda Lee; Nestor Machado;
Subject: Re: City Response - Concerns Regarding 10th Street Affordable Housing CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

If you have the time, I encourage you to familiarize yourself with the City’s Housing Element, which provides a lot of detailed information about what the City is required to do.

We definitely have, and as far as we can see there is no absolute requirement for the 8 unit extremedensity construction, which will not make any substantive difference in fulfilling state requirements. Some media reference 7 unit planning requirement by end of year, but I can find no other official sources supporting or publishing this:
7 unit EOY permit reference:
https://thecoastnews.com/del-mar-takes-first-step-toward-affordable-housing-at-city-hall-site For those looking to read up on the city official / website publications:

Del Mar 6th Cycle Housing Element Program overview:
https://www.delmar.ca.us/852/6th-Cycle-Housing-Element-Program-Implem Del Mar Housing Production summary (dated 9/28/2026):
https://www.delmar.ca.us/DocumentCenter/View/12703/6th-Cycle-Production-Summary 10th Street Civic Center RFP:
https://www.delmar.ca.us/DocumentCenter/View/12497
8/17/2026 Keyser Marston Associates Del Mar Affordable Housing Feasibility Analysis. The findings do NOT mention the 10th street small lot construction, nor this being a 'requirement':
https://www.delmar.ca.us/DocumentCenter/View/12729/KMA-Feasibility-Analysis_08-17-2026 Best regards,
G. Stuart Mendenhall, MD
10th Street, Del Mar
Attachment C 91 October 20, 2026 Item 9
2 On Mon, Oct 5, 2026 at 7:57 PM Ashley Jones <[email protected]> wrote:

For clarification, my reference was to a City advisory committee that was formed to evaluate and make recommendations regarding the City’s Housing Element, not City Council approval. Ethel, I will get back to you on your question related to Housing Element adoption by the Council. However, it is important to keep in mind that the Housing Element is a comprehensive planning document that includes many, many actions and programs to be completed by the City to meet State mandated requirements. Del Mar, like all other cities in the State, continues to lose local control and discretion over where and how housing should be built in our communities due to State housing laws. In the absence of obtaining a certified Housing Element, or doing what is required to remain compliant, the City faces losing local land use authority and opening the door for development in the City to become “By-right”. By-right housing in California means that development proposals are required to be approved through a streamlined, ministerial process without allowing discretionary local government review or environmental reviews under the California Environmental Quality Act (CEQA).

If you have the time, I encourage you to familiarize yourself with the City’s Housing Element, which provides a lot of detailed information about what the City is required to do.

I’m signing off for tonight, but will circle back before the end of the week with the additional information that has been requested.

Best regards,
Ashley
From: ulla rang < >
Sent: Monday, October 5, 2026 7:31 PM
To: Ethel Grant < >
Cc: Ashley Jones <[email protected]>; JoyDelMar >; Mark Maggenti < >; *City Council Group <[email protected]>; Tracy Martinez <[email protected]>; John Spelich <[email protected]>; Terry Gaasterland <[email protected]>; Dan Quirk <[email protected]>; Meghan Spieker <[email protected]>; Jeff Sturgis < >; [email protected]; Julie Maxey < >; G. Stuart Mendenhall < >; Becky Carroll
< ; Andrew Blumenfeld
>; Jeanne Blumenfeld < >; Jennifer M.
< >; Rick < >; Karen Brindley
<[email protected]>; Amanda Lee <[email protected]>; Nestor Machado Attachment C 92 October 20, 2026 Item 9
3 <[email protected]>;
Subject: Re: City Response - Concerns Regarding 10th Street Affordable Housing CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Hi Ethel,
Ashley said in an earlier response that it was Terry, Tracy, and Jas (as a planning dept member), so there is plenty of blame to go around.
"I’ve asked staff to put together an overview of how the 10th Street site was identified for affordable housing and incorporated into the City’s Housing Element. As a reminder, the Housing Element was developed by the Council, staff, and the community during a long (multi-year) and very public process. In fact, the process involved the formation of a Housing Task Force, of which two current Councilmembers (Gaasterland/Martinez) and a current Planning Commissioner/Council Candidate (Jas Grewal) were a part of. "
On Mon, Oct 5, 2026 at 6:07 PM Ethel Grant < > wrote:

Hi Ashley,
Do you happen to know when and which city council members voted to rezone the public facilities lot (now the 10th St. low income housing lot). I know that in order for the lot to be built for other than a public facility use, ex. Library, police or fire dept., it had to be voted on and rezoned via the City Council.

Thank you so much for your time,
Ethel Grant
On Mon, Oct 5, 2026 at 5:25 PM Ashley Jones <[email protected]> wrote:

I appreciate your concerns, Joy, and I know that the City Hall construction was very tough on all the neighbors, especially those of you that live right next door. I can’t speak to what was or was not enforced during that time as I was not the City Manager then. However, I can commit to you that residents of the 10th Street development will be required to park their vehicles in their assigned parking spaces and that will be enforced. We can build that into the rules and regulations for the property. Best regards, Ashley
Attachment C 93 October 20, 2026 Item 9
4 From: JoyDelMar < >
Sent: Monday, October 5, 2026 5:20 PM
To: Ashley Jones <[email protected]>
Cc: Mark Maggenti < >; *City Council Group
<[email protected]>; Tracy Martinez <[email protected]>; John Spelich <[email protected]>; Terry Gaasterland <[email protected]>; Dan Quirk <[email protected]>; Meghan Spieker <[email protected]>; Jeff Sturgis < >; [email protected]; ulla rang < >; Julie Maxey
< >; G. Stuart Mendenhall < >; Becky Carroll
< ; Andrew Blumenfeld
< >; Jeanne Blumenfeld < >; Jennifer M.
< >; Ethel and Danny Grant < >; Rick
< >; Karen Brindley <[email protected]>; Amanda Lee <[email protected]>; Nestor Machado <[email protected]>; Subject: Re: City Response - Concerns Regarding 10th Street Affordable Housing CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Thanks Ashley, in my experience rules and regulations only work when there is motivation to enforce them and that will be lacking. You are going to keep track of all the cars and who owns them check to see if they are on the street? Then ticket them?
I lived through the construction of City Hall and rules and regulations were NOT enforced! Everyone including code enforcement, parking enforcement, city management etc all looked the other way! Numerous violations occurred almost on a daily basis, I just gave up complaining.

Joy
Sent from my iPhone
On Oct 5, 2026, at 5:09 PM, Ashley Jones <[email protected]> wrote:

Hi Joy,
Attachment C 94 October 20, 2026 Item 9
5 I can assure you that rules and regulations for tenancy at affordable housing developments as I’ve described are absolutely legal and common place. We have a specialized affordable housing legal counsel with Goldfarb & Lipman that can speak to this as we get to that part of the process, and that is what I have known through my experience with affordable housing and redevelopment projects in other communities. There will be a dedicated property management firm overseeing the property, and we will have a lot of eyes on what is going on there due to it’s proximity to City Hall.

Best regards,
Ashley Jones
City Manager
City of Del Mar
1050 Camino Del Mar
Del Mar, CA 92014
(858) 704-3640
[email protected]
From: Joy Ehrenfeld <
Sent: Monday, October 5, 2026 4:52 PM
To: Ashley Jones <[email protected]>
Cc: Mark Maggenti < >; *City Council Group
<[email protected]>; Tracy Martinez <[email protected]>; John Spelich <[email protected]>; Terry Gaasterland <[email protected]>; Dan Quirk <[email protected]>; Meghan Spieker <[email protected]>; Jeff Sturgis < >; [email protected]; ulla rang
; Julie Maxey < >; G. Stuart Mendenhall
< >; Becky Carroll < >;
; Andrew Blumenfeld < ; Jeanne
Blumenfeld < >; Jennifer M. < >; Ethel
and Danny Grant ; Rick < >; Karen
Brindley <[email protected]>; Amanda Lee <[email protected]>; Nestor Machado <[email protected]>;
Subject: Re: City Response - Concerns Regarding 10th Street Affordable Housing Attachment C 95 October 20, 2026 Item 9
6 CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Thanks Ashley,
Your claims that the City can enforce where these low income tenants park, and punish them for parking on the street, for having a big party, for having lots of guests over are probably unconstitutional? All we have are code enforcement and the Sheriff, just like everyone other citizen in Del Mar. Maybe one of the 5 lawyers above can weigh in on this?
Joy
On Oct 5, 2026, at 4:37 PM, Ashley Jones <[email protected]> wrote:

Thanks for the following up, Joy and Mark. What I was referring to is providing examples of, and potentially touring, other established affordable housing developments (either senior or multi-family – once that determination has been made by the Council) to see how they are maintained and managed since we have heard a lot of concerns about potential noise, parking, and maintenance issues. And, in doing that, we can certainly try to identify examples that would be smaller in size.

Best regards, Ashley
From: Mark Maggenti <
Sent: Monday, October 5, 2026 4:26 PM
To: Joy Ehrenfeld >
Cc: Ashley Jones <[email protected]>; *City Council Group <[email protected]>; Tracy Martinez
<[email protected]>; John Spelich <[email protected]>; Terry Gaasterland <[email protected]>; Dan Quirk
<[email protected]>; Meghan Spieker
<[email protected]>; Jeff Sturgis
< >; [email protected]; ulla rang
< Julie Maxey >; G.

Stuart Mendenhall < >; Becky Carroll
< ; Andrew Blumenfeld
< >; Jeanne Blumenfeld
< >; Jennifer M. < >;
Ethel and Danny Grant < >; Rick
Attachment C 96 October 20, 2026 Item 9
7 < >; Karen Brindley <[email protected]>;
Amanda Lee <[email protected]>; Nestor Machado
<[email protected]>;
Subject: Re: City Response - Concerns Regarding 10th Street Affordable Housing
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

I think Joy's suggestion is perfect. One way to highlight the similarity to the 10th St project numerically would be to show the density (units/acre) of all these other properties. For reference, I believe your current proposal for 10th St is 80 units/acre.
- Mark Maggenti
On Mon, Oct 5, 2026 at 4:09 PM Joy Ehrenfeld < >
wrote:

Hello Ashley,
I’d like to take you up on your offer now rather than later to supply us with a list of very low income, studio apartments in SD that are very well run and fit into a nice residential neighborhood. Something with 8 units or more on a lot of this size or smaller, managed by a private company.

Thanks,
Joy Shadle Ehrenfeld
Attachment C 97 October 20, 2026 Item 9
8 ---------- Forwarded message ---------
From: Ashley Jones <[email protected]>
Date: Mon, Oct 5, 2026 at 2:59 PM
Subject: City Response - Concerns Regarding 10th Street Affordable Housing
To: G. Stuart Mendenhall < >, Julie
Maxey < >, Ethel and Danny
Grant < >, Rick and Joy Ehrenfeld
< >, Edita Donnelly
< >, Mark Maggenti
< >, Becky Carroll
< >, ulla rang < >
CC: *City Council Group
<[email protected]>, Meghan Spieker
<[email protected]>,
< >, Jeff Sturgis
< >, Karen Brindley
<[email protected]>, Amanda Lee
<[email protected]>, Nestor Machado
<[email protected]>
Dear 10th Street Neighbors,
Thank you for reaching out. In response to the
communication below and others submitted to the City; I want to offer some additional information and insight. As part of the City’s certified 6th Cycle Housing Element, the City of Del Mar is required to develop the 10th Street lot at the Civic Center with affordable housing units. You
can find more specific information on the City’s website at:
https://www.delmar.ca.us/852/6th-Cycle-HousingElement-Program-Implem. If the City fails to achieve issuance of building permits for development of the
10thStreet lot by December 2027, we will face serious
legal repercussions from the State. This being the case, the issue at hand is not whether to develop the site, but to ensure it is developed in a way that minimizes impacts and conforms to the character of the neighborhood.

What the City Council will be asked to decide as we
move through the process is the scope of development
for the site, which would include the number of units,
target population (i.e. seniors, families, etc.); design of Attachment C 98 October 20, 2026 Item 9
9 the project; dedicated parking spaces; project amenities; and how the property will be managed. Having worked
on numerous affordable developments of all types in
other communities, I want to assure you that there are
provisions that the City can and will put in place to
ensure the 10th Street property is well-managed and the rules are strictly enforced. The Council will be asked to approve a management plan and rules/regulations for
the property, which will address many of the concerns
raised. Residents will have assigned parking spaces that they will be required to use or face enforcement; they
will be required to keep the exterior of their units clean and tidy; they will be limited as to the activities that can occur on the property (visitors, parties, etc.); and much more. The goal is to develop the site and place residents there that will enhance and blend into the community.

Once we get further along in the process, I would be
happy to provide examples of very well managed and run
affordable housing developments in San Diego that
would be similar to what will be built in Del Mar, so you can check them out for yourself and maybe we can even
schedule a tour.

As I’ve mentioned in prior communications, this process is just starting and there will be lots of opportunity for public input throughout. Bringing an Exclusive
Negotiating Rights Agreement (ENRA) and
Predevelopment Funding Agreement to the Council on
10/20 for approval is just the first step.

Best regards,
Ashley Jones
City Manager
City of Del Mar
(858) 704-3640 (Direct Line)
[email protected]
Attachment C 99 October 20, 2026 Item 9
10 From: G. Stuart Mendenhall < >
Sent: Wednesday, September 23, 2026 2:37 PM
To: Ashley Jones <[email protected]>
Cc: Julie Maxey < *City
Council Group <[email protected]>;
Meghan Spieker
<[email protected]>;
; Jeff Sturgis < >; Rick and Joy Ehrenfeld
< >; Ethel and Danny Grant
< Becky Carroll
< >; Edita Donnelly
< >; Mark Maggenti
< >; ulla rang
Karen Brindley
<[email protected]>; Amanda Lee
<[email protected]>; Nestor Machado
<[email protected]>
Subject: re: 10th Street low income housing
CAUTION: This email originated from outside of the
organization. Do not click links or open attachments
unless you recognize the sender and know the content is safe.

September 23, 2026
I am very concerned that the stock answers that seem to imply the city manager and council are not listening to the citizens.

I strongly argue that nothing should be built on that tiny lot at this time.

Do not do it. Do not build impractical ultra-dense housing.

Having a small remnant of nature where we can have a few trees and fauna, kids can see grass and bushes, and pets can touch something other than hot concrete under their paws, is essential to good city design. It is good for the health of all residents. It's good for the physical and Attachment C 100 October 20, 2026 Item 9
11 mental health of neighbors. It's even good for the health of those that work at the Civic Center.

Do we want a livable beautiful city, or performative
compliance?
One small lot, hurting the surrounding community, is not what the state or city needs. It helps nobody and doesn't satisfy requirements anyway.

A real, sustainable solution consists of building an
environmentally efficient complex that can house 100+
people next to transportation, near the fairgrounds. As city council persons you can make a difference. But this is
NOT the way.

Whether 4, 6, or 8 units on this tiny area the size of an R1, this destruction of that city lot does not provide meaningful benefit other than to the few lucky people that secure a below-market transient benefit in effectively slum housing.

It has not been explained who will receive the artificially low rent apartments other than platitudes of 'teachers and firefighters'. Age discrimination is illegal, with very narrow exceptions. Racial, sex, or other protected class
discrimination is illegal.

The average teacher salary for San Diego is $105,000 per year. San Diego district *starting* salary range is $58,600 for the 2024-5 school year. One of our employees is
married to a firefighter who earns $150,000 per year.

Who are these mythical 'teachers and firefighters?' They won't be living there, because they won't qualify. To argue so is to be either misinformed or disingenuous.

This wording for certain 'types' of persons, both by city council members and those advocating, is worrisome. Will subletting be expressly prohibited? Is the city going to enforce the proper use and monitor who is actually living in the units?
One more time, discrimination is illegal and
immoral. Restrictions on ‘use’ to certain desirable
'occupations' and continued talk about occupational
restrictions puts the city council, and thus the city, at great risk.

Attachment C 101 October 20, 2026 Item 9
12 The proposed cramped Del Mar complex built on that lot will lead to easily foreseeable problems.

It is human nature to get territorial, and this could go in both directions. The multitude of new renters, friends and visitors will use the civic center environs as their own common area as they have little own space, and may feel they have a right to primary use, and get used to daily enjoyment. It will become their beautiful all-day retreat with a view.

On the other hand, longstanding Del Mar residents, who
opposed the construction of the below-market rental units, could feel they have more right to use of the beautiful area as they are those that finance it through taxes and market rate purchases.

Will the civic center allow the parking lot to be used for barbecues and parties when the Farmer's market is not in session? Eight units with a few friends creates several dozen people hanging out. There are rules on gathering
restrictions of 25 people, but that is for single group, so multiple groups can easily overwhelm spaces.

We don't even have a police force. Nor do we want to need one.

Extremely low income tenants need access to
affordable staples. Not walkable access to a trendy
new high-end bar with a strict dress code, or gourmet
pet food.

A great view won't put nutritious meals on the
table. Unless the residents become entrepreneurial and
airBNB the rental at market rates out for profit and live in more affordable area. How will the city detect
this? Random checks and a network of snitches? Can a
wealthy lawyer have their retired parent 'qualify' for the low income housing with near-zero income but access to
millions?
Will city council members and civic center staff exclude themselves, their families, and friends from qualifying for the housing, given their conflict of interest being on the governing committee?
Instead of creating myriad problems, perhaps it is better to have sensible design and planning instead, and a city
Attachment C 102 October 20, 2026 Item 9
13 *listen* to its residents.

Remember, nobody can 'selectively enforce' use of the
public area.

Solicitation and panhandling is considered public
speech in California and may take place on Del Mar
public property. Del Mar has no specific additional
statutes. It is illegal to remove a non-aggressive
panhandler.

This will create a minefield. Again, don't do it.

Do not create the Del Mar slum house. Even if it is small.

I urge all city council persons to think of solutions, and not reflexively act to hurt the residents of their own city.

Make sustainable, maintainable, large scale affordable
housing. To accomplish this and fulfill obligations in the interim, Del Mar may sponsor housing and units nearby in One Paseo, or numerous other areas effectively designed for high-density living, to fulfill the state-mandated
obligation. This would be a fraction of the cost of the contractor building and city administering the Del Mar
slums, and much more effective to help the many citizens of California in need, not just a "chosen" few.

G. Stuart Mendenhall, MD
Scripps Memorial Hospital - La Jolla
(10th Street, Del Mar, CA)
On Mon, Sep 21, 2026 at 8:37 PM Ashley Jones
<[email protected]> wrote:

Hi Julie,
Thanks for sharing your thoughts and concerns regarding the City's plans for affordable housing at the 10th Street location. Staff are planning to bring forward an Exclusive Negotiating Rights Agreement (ENRA) with a proposed
developer to the City Council for consideration on
October 6. During the ENRA period, the City will work with Attachment C 103 October 20, 2026 Item 9
14 the developer to conduct site due diligence activities and come up with a recommended scope of development
(number of units, design, targeted resident population, parking, etc.) for Council consideration, all of which will be subject to public input and participation. I highly
encourage you and the surrounding neighbors to stay
engaged and participate throughout the process.

Best regards,
Ashley Jones
City Manager
City of Del Mar
(858) 704-3640 (Direct Line)
[email protected]
-----Original Message-----
From: Juliana Maxey-Allison >
Sent: Monday, September 21, 2026 10:16 AM
To: Tracy Martinez <[email protected]>; Terry TG.

Gaasterland <[email protected]>; Dan Quirk
<[email protected]>; John Spelich
<[email protected]>; Ashley Jones
<[email protected]>
Cc: Meghan Spieker
<[email protected]>
Jeff Sturgis >; Rick and Joy
Ehrenfeld < >; Ethel and Danny
Grant < >; G. Stuart Mendenhall
< >; Becky Carroll
< >; Edita Donnelly
< >; Mark Maggenti
< >; ulla rang
< >
Subject: 10 Street low income housing proposal
CAUTION: This email originated from outside of the
organization. Do not click links or open attachments
unless you recognize the sender and know the content is safe.

Attachment C 104 October 20, 2026 Item 9
1 Nestor Machado
From: ulla rang
Sent: Wednesday, October 7, 2026 6:28 PM
To: G. Stuart Mendenhall
Cc: Ashley Jones; Ethel Grant; JoyDelMar; Mark Maggenti; *City Council Group; Tracy Martinez; John Spelich; Terry Gaasterland; Dan Quirk; Meghan Spieker; Jeff Sturgis; [email protected]; Julie Maxey; Becky Carroll; ; Andrew Blumenfeld; Jeanne Blumenfeld; Jennifer M.; Rick; Karen Brindley; Amanda Lee; Nestor Machado;
Subject: Re: City Response - Concerns Regarding 10th Street Affordable Housing CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

I absolutely agree with G. Stuart. There is nothing in the Housing Element that forces the City to cram in 8 units on the small lot on10th Street. Nothing. Like we all have said and keep on saying, we can take a couple of units on 10th Street, and you can divide the rest onto parcel 1 (corner of 11th and Stratford) and also down by Public Works. Floodplain only means that living area will be on 2nd floor and elevators are needed if for older people.

Or you can sell the lot for a LOT of money and pay for agreements with owners of already existing apartment complexes that already are around to have them set aside for affordable housing. The lot would probably bring in more money than you have to pay for the Affordable Housing agreement.

You can't put all Very Low Income units on one spot. It is not right to them. It is not right to us.

Again - what do you think this building will be nicknamed? Would you want to live in a building with that name? Affordable Housing Units, and especailly Very Low Affordable Unts, have to be mixed in with regular units to not shame the people who qualify for the Housing. I seriously don't know what you/anyone was thinking back in the day when this was declared a brilliant idea. It is a terrible idea for all involved parties. Rethink. Redo.

Please tell me what is so sacred about Parcel 1. It is a separate lot, owned by the city, used for nothing and of the exact same size as parcel 3. Why is Parcel 1 not considered to take some of the burden? I really want to know. I have asked so many times and I demand an answer.

Best,
Camilla
On Wed, Oct 7, 2026 at 5:49 PM G. Stuart Mendenhall < > wrote:

If you have the time, I encourage you to familiarize yourself with the City’s Housing Element, which provides a lot of detailed information about what the City is required to do.

We definitely have, and as far as we can see there is no absolute requirement for the 8 unit extremedensity construction, which will not make any substantive difference in fulfilling state requirements. Some media reference 7 unit planning requirement by end of year, but I can find no other official sources supporting or publishing this:

Attachment C 105 October 20, 2026 Item 9
2 7 unit EOY permit reference:
https://thecoastnews.com/del-mar-takes-first-step-toward-affordable-housing-at-city-hall-site For those looking to read up on the city official / website publications:

Del Mar 6th Cycle Housing Element Program overview:
https://www.delmar.ca.us/852/6th-Cycle-Housing-Element-Program-Implem Del Mar Housing Production summary (dated 9/28/2026):
https://www.delmar.ca.us/DocumentCenter/View/12703/6th-Cycle-Production-Summary 10th Street Civic Center RFP:
https://www.delmar.ca.us/DocumentCenter/View/12497
8/17/2026 Keyser Marston Associates Del Mar Affordable Housing Feasibility Analysis. The findings do NOT mention the 10th street small lot construction, nor this being a 'requirement':
https://www.delmar.ca.us/DocumentCenter/View/12729/KMA-Feasibility-Analysis_08-17-2026 Best regards,
G. Stuart Mendenhall, MD
10th Street, Del Mar
On Mon, Oct 5, 2026 at 7:57 PM Ashley Jones <[email protected]> wrote:

For clarification, my reference was to a City advisory committee that was formed to evaluate and make recommendations regarding the City’s Housing Element, not City Council approval. Ethel, I will get back to you on your question related to Housing Element adoption by the Council. However, it is important to keep in mind that the Housing Element is a comprehensive planning document that includes many, many actions and programs to be completed by the City to meet State mandated requirements. Del Mar, like all other cities in the State, continues to lose local control and discretion over where and how housing should be built in our communities due to State housing laws. In the absence of obtaining a certified Housing Element, or doing what is required to remain compliant, the City faces losing local land use authority and opening the door for development in the City to become “By-right”. By-right housing in California means that development proposals are required to be approved through a streamlined, ministerial process without allowing discretionary local government review or environmental reviews under the California Environmental Quality Act (CEQA).

If you have the time, I encourage you to familiarize yourself with the City’s Housing Element, which provides a lot of detailed information about what the City is required to do.

Attachment C 106 October 20, 2026 Item 9
3 I’m signing off for tonight, but will circle back before the end of the week with the additional information that has been requested.

Best regards,
Ashley
From: ulla rang >
Sent: Monday, October 5, 2026 7:31 PM
To: Ethel Grant < m>
Cc: Ashley Jones <[email protected]>; JoyDelMar >; Mark Maggenti < >; *City Council Group <[email protected]>; Tracy Martinez <[email protected]>; John Spelich <[email protected]>; Terry Gaasterland <[email protected]>; Dan Quirk <[email protected]>; Meghan Spieker <[email protected]>; Jeff Sturgis < >; [email protected]; Julie Maxey >; G. Stuart Mendenhall < >; Becky Carroll
< ; Andrew Blumenfeld
< >; Jeanne Blumenfeld >; Jennifer M.
< >; Rick < >; Karen Brindley
<[email protected]>; Amanda Lee <[email protected]>; Nestor Machado <[email protected]>;
Subject: Re: City Response - Concerns Regarding 10th Street Affordable Housing CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Hi Ethel,
Ashley said in an earlier response that it was Terry, Tracy, and Jas (as a planning dept member), so there is plenty of blame to go around.
"I’ve asked staff to put together an overview of how the 10th Street site was identified for affordable housing and incorporated into the City’s Housing Element. As a reminder, the Housing Element was developed by the Council, staff, and the community during a long (multi-year) and very public process. In fact, the process involved the formation of a Housing Task Force, of which two current Councilmembers (Gaasterland/Martinez) and a current Planning Commissioner/Council Candidate (Jas Grewal) were a part of. "
Attachment C 107 October 20, 2026 Item 9
4 On Mon, Oct 5, 2026 at 6:07 PM Ethel Grant < > wrote:

Hi Ashley,
Do you happen to know when and which city council members voted to rezone the public facilities lot (now the 10th St. low income housing lot). I know that in order for the lot to be built for other than a public facility use, ex. Library, police or fire dept., it had to be voted on and rezoned via the City Council.

Thank you so much for your time,
Ethel Grant
On Mon, Oct 5, 2026 at 5:25 PM Ashley Jones <[email protected]> wrote:

I appreciate your concerns, Joy, and I know that the City Hall construction was very tough on all the neighbors, especially those of you that live right next door. I can’t speak to what was or was not enforced during that time as I was not the City Manager then. However, I can commit to you that residents of the 10th Street development will be required to park their vehicles in their assigned parking spaces and that will be enforced. We can build that into the rules and regulations for the property. Best regards, Ashley
From: JoyDelMar < >
Sent: Monday, October 5, 2026 5:20 PM
To: Ashley Jones <[email protected]>
Cc: Mark Maggenti < >; *City Council Group
<[email protected]>; Tracy Martinez <[email protected]>; John Spelich <[email protected]>; Terry Gaasterland <[email protected]>; Dan Quirk <[email protected]>; Meghan Spieker <[email protected]>; Jeff Sturgis ; [email protected]; ulla rang < >; Julie Maxey
< >; G. Stuart Mendenhall < >; Becky Carroll
< ; Andrew Blumenfeld
< >; Jeanne Blumenfeld < >; Jennifer M.
< >; Ethel and Danny Grant >; Rick
< >; Karen Brindley <[email protected]>; Amanda Lee <[email protected]>; Nestor Machado <[email protected]>; Subject: Re: City Response - Concerns Regarding 10th Street Affordable Housing CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Attachment C 108 October 20, 2026 Item 9
5 Thanks Ashley, in my experience rules and regulations only work when there is motivation to enforce them and that will be lacking. You are going to keep track of all the cars and who owns them check to see if they are on the street? Then ticket them?
I lived through the construction of City Hall and rules and regulations were NOT enforced! Everyone including code enforcement, parking enforcement, city management etc all looked the other way! Numerous violations occurred almost on a daily basis, I just gave up complaining.

Joy
Sent from my iPhone
On Oct 5, 2026, at 5:09 PM, Ashley Jones <[email protected]> wrote:

Hi Joy,
I can assure you that rules and regulations for tenancy at affordable housing developments as I’ve described are absolutely legal and common place. We have a specialized affordable housing legal counsel with Goldfarb & Lipman that can speak to this as we get to that part of the process, and that is what I have known through my experience with affordable housing and redevelopment projects in other communities. There will be a dedicated property management firm overseeing the property, and we will have a lot of eyes on what is going on there due to it’s proximity to City Hall.

Best regards,
Ashley Jones
City Manager
City of Del Mar
1050 Camino Del Mar
Del Mar, CA 92014
(858) 704-3640
[email protected]
Attachment C 109 October 20, 2026 Item 9
6 From: Joy Ehrenfeld < >
Sent: Monday, October 5, 2026 4:52 PM
To: Ashley Jones <[email protected]>
Cc: Mark Maggenti < ; *City Council Group
<[email protected]>; Tracy Martinez <[email protected]>; John Spelich <[email protected]>; Terry Gaasterland <[email protected]>; Dan Quirk <[email protected]>; Meghan Spieker <[email protected]>; Jeff Sturgis >; [email protected]; ulla rang
< ; Julie Maxey < >; G. Stuart
Mendenhall < >; Becky Carroll >;
; Andrew Blumenfeld < >; Jeanne
Blumenfeld < >; Jennifer M. < >;
Ethel and Danny Grant < >; Rick < ;
Karen Brindley <[email protected]>; Amanda Lee <[email protected]>; Nestor Machado <[email protected]>;
Subject: Re: City Response - Concerns Regarding 10th Street Affordable Housing CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Thanks Ashley,
Your claims that the City can enforce where these low income tenants park, and punish them for parking on the street, for having a big party, for having lots of guests over are probably unconstitutional? All we have are code enforcement and the Sheriff, just like everyone other citizen in Del Mar. Maybe one of the 5 lawyers above can weigh in on this?
Joy
On Oct 5, 2026, at 4:37 PM, Ashley Jones <[email protected]> wrote:

Thanks for the following up, Joy and Mark. What I was referring to is providing examples of, and potentially touring, other established affordable housing developments (either senior or multi-family – once that determination has been made by the Council) to see how they are maintained and managed since we have heard a lot of concerns about potential noise, parking, and maintenance issues. And, in doing that, Attachment C 110 October 20, 2026 Item 9
7 we can certainly try to identify examples that would be smaller in size.

Best regards, Ashley
From: Mark Maggenti < >
Sent: Monday, October 5, 2026 4:26 PM
To: Joy Ehrenfeld < >
Cc: Ashley Jones <[email protected]>; *City Council Group <[email protected]>; Tracy Martinez
<[email protected]>; John Spelich <[email protected]>; Terry Gaasterland <[email protected]>; Dan Quirk <[email protected]>; Meghan Spieker
<[email protected]>; Jeff Sturgis
< >; [email protected]; ulla rang
< >; Julie Maxey < >; G.

Stuart Mendenhall < >; Becky Carroll
< Andrew Blumenfeld
< >; Jeanne Blumenfeld
< >; Jennifer M. < >;
Ethel and Danny Grant < >; Rick
< >; Karen Brindley
<[email protected]>; Amanda Lee <[email protected]>; Nestor Machado <[email protected]>;
Subject: Re: City Response - Concerns Regarding 10th Street Affordable Housing
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

I think Joy's suggestion is perfect. One way to highlight the similarity to the 10th St project numerically would be to show the density (units/acre) of all these other properties. For reference, I believe your current proposal for 10th St is 80 units/acre.
- Mark Maggenti
Attachment C 111 October 20, 2026 Item 9
8 On Mon, Oct 5, 2026 at 4:09 PM Joy Ehrenfeld < >
wrote:

Hello Ashley,
I’d like to take you up on your offer now rather than later to supply us with a list of very low income, studio apartments in SD that are very well run and fit into a nice residential neighborhood. Something with 8 units or more on a lot of this size or smaller, managed by a private company.

Thanks,
Joy Shadle Ehrenfeld
---------- Forwarded message ---------
From: Ashley Jones <[email protected]>
Date: Mon, Oct 5, 2026 at 2:59 PM
Subject: City Response - Concerns Regarding 10th Street Affordable Housing
To: G. Stuart Mendenhall < >, Julie
Maxey < >, Ethel and Danny
Grant < , Rick and Joy Ehrenfeld
< >, Edita Donnelly
< >, Mark Maggenti
>, Becky Carroll
< >, ulla rang <
CC: *City Council Group
<[email protected]>, Meghan Spieker
<[email protected]>,
>, Jeff Sturgis
<j >, Karen Brindley
<[email protected]>, Amanda Lee
<[email protected]>, Nestor Machado
<[email protected]>
Dear 10th Street Neighbors,
Thank you for reaching out. In response to the
communication below and others submitted to the City; I Attachment C 112 October 20, 2026 Item 9
9 want to offer some additional information and
insight. As part of the City’s certified 6th Cycle Housing Element, the City of Del Mar is required to develop the 10th Street lot at the Civic Center with affordable
housing units. You can find more specific information
on the City’s website at:
https://www.delmar.ca.us/852/6th-Cycle-HousingElement-Program-Implem. If the City fails to achieve issuance of building permits for development of the
10thStreet lot by December 2027, we will face serious
legal repercussions from the State. This being the case, the issue at hand is not whether to develop the site, but to ensure it is developed in a way that minimizes
impacts and conforms to the character of the
neighborhood.

What the City Council will be asked to decide as we
move through the process is the scope of development
for the site, which would include the number of units,
target population (i.e. seniors, families, etc.); design of the project; dedicated parking spaces; project amenities; and how the property will be managed. Having worked
on numerous affordable developments of all types in
other communities, I want to assure you that there are
provisions that the City can and will put in place to
ensure the 10th Street property is well-managed and the rules are strictly enforced. The Council will be asked to approve a management plan and rules/regulations for
the property, which will address many of the concerns
raised. Residents will have assigned parking spaces
that they will be required to use or face
enforcement; they will be required to keep the exterior of their units clean and tidy; they will be limited as to the activities that can occur on the property (visitors, parties, etc.); and much more. The goal is to develop the site
and place residents there that will enhance and blend
into the community.

Once we get further along in the process, I would be
happy to provide examples of very well managed and
run affordable housing developments in San Diego that
would be similar to what will be built in Del Mar, so you can check them out for yourself and maybe we can
even schedule a tour.

Attachment C 113 October 20, 2026 Item 9
10 As I’ve mentioned in prior communications, this process is just starting and there will be lots of opportunity for public input throughout. Bringing an Exclusive
Negotiating Rights Agreement (ENRA) and
Predevelopment Funding Agreement to the Council on
10/20 for approval is just the first step.

Best regards,
Ashley Jones
City Manager
City of Del Mar
(858) 704-3640 (Direct Line)
[email protected]
From: G. Stuart Mendenhall <
Sent: Wednesday, September 23, 2026 2:37 PM
To: Ashley Jones <[email protected]>
Cc: Julie Maxey < >; *City
Council Group <[email protected]>;
Meghan Spieker
<[email protected]>;
Jeff Sturgis < ; Rick and Joy
Ehrenfeld >; Ethel and Danny
Grant >; Becky Carroll
< >; Edita Donnelly
< >; Mark Maggenti
< >; ulla rang
< ; Karen Brindley
<[email protected]>; Amanda Lee
<[email protected]>; Nestor Machado
<[email protected]>
Subject: re: 10th Street low income housing
CAUTION: This email originated from outside of the
organization. Do not click links or open attachments
Attachment C 114 October 20, 2026 Item 9
11 unless you recognize the sender and know the content is safe.

September 23, 2026
I am very concerned that the stock answers that seem to imply the city manager and council are not listening to the citizens.

I strongly argue that nothing should be built on that tiny lot at this time.

Do not do it. Do not build impractical ultra-dense
housing.

Having a small remnant of nature where we can have a
few trees and fauna, kids can see grass and bushes, and pets can touch something other than hot concrete under
their paws, is essential to good city design. It is good for the health of all residents. It's good for the physical and mental health of neighbors. It's even good for the health of those that work at the Civic Center.

Do we want a livable beautiful city, or performative
compliance?
One small lot, hurting the surrounding community, is not what the state or city needs. It helps nobody and doesn't satisfy requirements anyway.

A real, sustainable solution consists of building an
environmentally efficient complex that can house 100+
people next to transportation, near the fairgrounds. As city council persons you can make a difference. But this is NOT the way.

Whether 4, 6, or 8 units on this tiny area the size of an R1, this destruction of that city lot does not provide
meaningful benefit other than to the few lucky people that secure a below-market transient benefit in effectively
slum housing.

It has not been explained who will receive the artificially low rent apartments other than platitudes of 'teachers
Attachment C 115 October 20, 2026 Item 9
12 and firefighters'. Age discrimination is illegal, with very narrow exceptions. Racial, sex, or other protected class discrimination is illegal.

The average teacher salary for San Diego is $105,000 per year. San Diego district *starting* salary range is $58,600 for the 2024-5 school year. One of our employees is
married to a firefighter who earns $150,000 per year.

Who are these mythical 'teachers and firefighters?' They won't be living there, because they won't qualify. To argue so is to be either misinformed or disingenuous.

This wording for certain 'types' of persons, both by city council members and those advocating, is
worrisome. Will subletting be expressly prohibited? Is the city going to enforce the proper use and monitor who is actually living in the units?
One more time, discrimination is illegal and
immoral. Restrictions on ‘use’ to certain desirable
'occupations' and continued talk about occupational
restrictions puts the city council, and thus the city, at great risk.

The proposed cramped Del Mar complex built on that lot
will lead to easily foreseeable problems.

It is human nature to get territorial, and this could go in both directions. The multitude of new renters, friends and visitors will use the civic center environs as their own common area as they have little own space, and may feel they have a right to primary use, and get used to daily enjoyment. It will become their beautiful all-day retreat with a view.

On the other hand, longstanding Del Mar residents, who
opposed the construction of the below-market rental
units, could feel they have more right to use of the
beautiful area as they are those that finance it through taxes and market rate purchases.

Will the civic center allow the parking lot to be used for barbecues and parties when the Farmer's market is not in session? Eight units with a few friends creates several dozen people hanging out. There are rules on gathering
restrictions of 25 people, but that is for single group, so multiple groups can easily overwhelm spaces.

Attachment C 116 October 20, 2026 Item 9
13 We don't even have a police force. Nor do we want to need one.

Extremely low income tenants need access to
affordable staples. Not walkable access to a trendy
new high-end bar with a strict dress code, or gourmet
pet food.

A great view won't put nutritious meals on the
table. Unless the residents become entrepreneurial and
airBNB the rental at market rates out for profit and live in more affordable area. How will the city detect
this? Random checks and a network of snitches? Can a
wealthy lawyer have their retired parent 'qualify' for the low income housing with near-zero income but access to
millions?
Will city council members and civic center staff exclude themselves, their families, and friends from qualifying for the housing, given their conflict of interest being on the governing committee?
Instead of creating myriad problems, perhaps it is better to have sensible design and planning instead, and a city *listen* to its residents.

Remember, nobody can 'selectively enforce' use of the
public area.

Solicitation and panhandling is considered public
speech in California and may take place on Del Mar
public property. Del Mar has no specific additional
statutes. It is illegal to remove a non-aggressive
panhandler.

This will create a minefield. Again, don't do it.

Do not create the Del Mar slum house. Even if it is small.

I urge all city council persons to think of solutions, and not reflexively act to hurt the residents of their own city.

Make sustainable, maintainable, large scale affordable
housing. To accomplish this and fulfill obligations in the interim, Del Mar may sponsor housing and units nearby in One Paseo, or numerous other areas effectively designed for high-density living, to fulfill the state-mandated
Attachment C 117 October 20, 2026 Item 9
14 obligation. This would be a fraction of the cost of the contractor building and city administering the Del Mar
slums, and much more effective to help the many citizens of California in need, not just a "chosen" few.

G. Stuart Mendenhall, MD
Scripps Memorial Hospital - La Jolla
(10th Street, Del Mar, CA)
On Mon, Sep 21, 2026 at 8:37 PM Ashley Jones
<[email protected]> wrote:

Hi Julie,
Thanks for sharing your thoughts and concerns regarding the City's plans for affordable housing at the 10th Street location. Staff are planning to bring forward an Exclusive Negotiating Rights Agreement (ENRA) with a proposed
developer to the City Council for consideration on
October 6. During the ENRA period, the City will work
with the developer to conduct site due diligence
activities and come up with a recommended scope of
development (number of units, design, targeted resident population, parking, etc.) for Council consideration, all of which will be subject to public input and participation. I highly encourage you and the surrounding neighbors to
stay engaged and participate throughout the process.

Best regards,
Ashley Jones
City Manager
City of Del Mar
(858) 704-3640 (Direct Line)
[email protected]
-----Original Message-----
From: Juliana Maxey-Allison
>
Sent: Monday, September 21, 2026 10:16 AM
To: Tracy Martinez <[email protected]>; Terry TG.

Gaasterland <[email protected]>; Dan Quirk
<[email protected]>; John Spelich
<[email protected]>; Ashley Jones
Attachment C 118 October 20, 2026 Item 9
15 <[email protected]>
Cc: Meghan Spieker
<[email protected]>;
; Jeff Sturgis < >; Rick and Joy
Ehrenfeld >; Ethel and Danny
Grant < >; G. Stuart Mendenhall
< ; Becky Carroll
< ; Edita Donnelly
< >; Mark Maggenti
< >; ulla rang
>
Subject: 10 Street low income housing proposal
CAUTION: This email originated from outside of the
organization. Do not click links or open attachments
unless you recognize the sender and know the content is safe.

Attachment C 119 October 20, 2026 Item 9
1 Nestor Machado
From: ulla rang < >
Sent: Tuesday, October 13, 2026 9:46 PM
To: Ashley Jones
Cc: Ethel Grant; JoyDelMar; Mark Maggenti; *City Council Group; Tracy Martinez; John Spelich; Terry Gaasterland; Dan Quirk; Meghan Spieker; Jeff Sturgis; [email protected]; Julie Maxey; G. Stuart Mendenhall; Becky Carroll; Andrew Blumenfeld; Jeanne Blumenfeld; Jennifer M.; Rick; Karen Brindley; Amanda Lee; Nestor Machado;
Subject: Re: City Response - Concerns Regarding 10th Street Affordable Housing CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Dear Ashley,
Have you had time to look over our questions and find us the information we are seeking? We would very much appreciate to get our questions answered before the next City Council meeting.

I list the questions below:
1/ Why is Parcel 1 not considered for Affordable Housing together with Parcel 3 as they are identical in size, they both are unused and located diagonally from each other.on the CIty's Civic Center lot. This way we could have 4 x 2 FAMILY units.
2/ However, it is still a very bad idea to create buildings that are only for Very Low Affordable Housing, shaming the tenants as being the poorest of the poor.. Such units should be mixed in with other units so that no one knows the status and the tenants are not singled out. Please justify and explain your thinking and decisions in regards to that.
3/ Who was on CIty Council when it was decided to use Parcel 1 for the Lowest Affordable Housing and how did each member vote, i.e when the parcel was rezoned. Was Parcel 3 rezoned at the same time, and if not - why?
4/ Please present to us other very high density (80 per acre) Very Low Affordable Housings that are well managed. We would like to have that very same Management company. 5/ Where are the 8 unit tenants going to park? Keep in mind that each unit MAY have 2 cars. If it will be elderly tenants, there will be lots of traffic from nurses, aids and relatives.Parking has to be solved and the gate into the open parking lot (read Farmer's Market) from 11th Street has to be opened. All those people can't drive through the garage to get to the parking lot. And where will they park on Saturdays when the Farmer's Market is going on? Or are you planning to reserve 8-16 parking spots for the tenants inside the covered garage?
6/ Why has the area around Public Works not been considered yet since there would be lots of opportunities there to build Very Low affordable housing that can be mixed in with regular housing. Food Attachment C 120 October 20, 2026 Item 9
2 plain only means that housing will be on 2nd floor and parking on 1st floor. Elevator solves that for elderly and disabled.

7. Could the same solution be used for the 10th Street lot as for the 28th street lot - sell it as a regular lot and use the proceeds to buy/rent apartments in already existing apartment complexes to be used for Very Low Affordable Housing. There are lots of rental units both down by the colony, along Stratford between 4th-8th Street and also up around the Beach Plaza (Von's) where such units can be mixed in nicely. Alternatively use the proceeds to make a deal with for example the Watermark (or Lazier) to exchange some of the Affordable units for the Very Low Affordable Units, which I understand is what we need..
8/ We, the 10th Street Group, need more clear information of why the City is required to build an 8 unit Very Low Affordable Housing structure on a 4,000 sqft lot. We were asked to familiarize ourselves with the Housing Element Requirements for Del Mar and nowhere can we find information that justifies this bad decision. Please let us know where we can find this information.

We need to solve the Affordable unit requirements but that does not mean we have to resort to bad panik decisions. We may have lost control - for now, of how many Affordable Housing units we have to come up with, but we have not lost control over where and how to add them. Above we have suggested many solutions. Again, just because something sounded like a good idea years ago, does not mean it's still a good idea once all details come to light.

Thank you for your help, Ashley. We look forward to hearing from you before the next City Council meeting.

Sincerely,
Camilla from the 10th Street Group
On Fri, Oct 9, 2026 at 5:51 PM Ashley Jones <[email protected]> wrote:

Just following up to let you know that I am working with our staff team to collect information responsive to the many important questions that have been raised, and we will get that out to everyone early next week. Hope you all have a nice weekend! – Ashley From: Ashley Jones
Sent: Monday, October 5, 2026 7:57 PM
To: ulla rang >; Ethel Grant < >
Cc: JoyDelMar < >; Mark Maggenti >; *City Council
Group <[email protected]>; Tracy Martinez <[email protected]>; John Spelich <[email protected]>; Terry Gaasterland <[email protected]>; Dan Quirk <[email protected]>; Meghan Spieker <[email protected]>; Jeff Sturgis < >; [email protected]; Julie Maxey ; G. Stuart
Mendenhall >; Becky Carroll < ;
; Andrew Blumenfeld < >; Jeanne Blumenfeld
>; Jennifer M. < >; Rick
Attachment C 121 October 20, 2026 Item 9
3 >; Karen Brindley <[email protected]>; Amanda Lee <[email protected]>; Nestor Machado <[email protected]>; Subject: RE: City Response - Concerns Regarding 10th Street Affordable Housing For clarification, my reference was to a City advisory committee that was formed to evaluate and make recommendations regarding the City’s Housing Element, not City Council approval. Ethel, I will get back to you on your question related to Housing Element adoption by the Council. However, it is important to keep in mind that the Housing Element is a comprehensive planning document that includes many, many actions and programs to be completed by the City to meet State mandated requirements. Del Mar, like all other cities in the State, continues to lose local control and discretion over where and how housing should be built in our communities due to State housing laws. In the absence of obtaining a certified Housing Element, or doing what is required to remain compliant, the City faces losing local land use authority and opening the door for development in the City to become “By-right”. By-right housing in California means that development proposals are required to be approved through a streamlined, ministerial process without allowing discretionary local government review or environmental reviews under the California Environmental Quality Act (CEQA).

If you have the time, I encourage you to familiarize yourself with the City’s Housing Element, which provides a lot of detailed information about what the City is required to do.

I’m signing off for tonight, but will circle back before the end of the week with the additional information that has been requested.

Best regards,
Ashley
From: ulla rang < >
Sent: Monday, October 5, 2026 7:31 PM
To: Ethel Grant < m>
Cc: Ashley Jones <[email protected]>; JoyDelMar < >; Mark Maggenti < >; *City Council Group <[email protected]>; Tracy Martinez <[email protected]>; John Spelich <[email protected]>; Terry Gaasterland <[email protected]>; Dan Quirk <[email protected]>; Meghan Spieker <[email protected]>; Jeff Sturgis < >; [email protected]; Julie Maxey >; G. Stuart Mendenhall < >; Becky Carroll
< ; Andrew Blumenfeld
< ; Jeanne Blumenfeld < Jennifer M.

Attachment C 122 October 20, 2026 Item 9
4 < ; Rick < >; Karen Brindley
<[email protected]>; Amanda Lee <[email protected]>; Nestor Machado <[email protected]>;
Subject: Re: City Response - Concerns Regarding 10th Street Affordable Housing CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Hi Ethel,
Ashley said in an earlier response that it was Terry, Tracy, and Jas (as a planning dept member), so there is plenty of blame to go around.
"I’ve asked staff to put together an overview of how the 10th Street site was identified for affordable housing and incorporated into the City’s Housing Element. As a reminder, the Housing Element was developed by the Council, staff, and the community during a long (multi-year) and very public process. In fact, the process involved the formation of a Housing Task Force, of which two current Councilmembers (Gaasterland/Martinez) and a current Planning Commissioner/Council Candidate (Jas Grewal) were a part of. "
On Mon, Oct 5, 2026 at 6:07 PM Ethel Grant < > wrote:

Hi Ashley,
Do you happen to know when and which city council members voted to rezone the public facilities lot (now the 10th St. low income housing lot). I know that in order for the lot to be built for other than a public facility use, ex. Library, police or fire dept., it had to be voted on and rezoned via the City Council.

Thank you so much for your time,
Ethel Grant
On Mon, Oct 5, 2026 at 5:25 PM Ashley Jones <[email protected]> wrote:

I appreciate your concerns, Joy, and I know that the City Hall construction was very tough on all the neighbors, especially those of you that live right next door. I can’t speak to what was or was not enforced during that time as I was not the City Manager then. However, I can commit to you that residents of the 10th Street development will be required to park their vehicles in their assigned Attachment C 123 October 20, 2026 Item 9
5 parking spaces and that will be enforced. We can build that into the rules and regulations for the property. Best regards, Ashley
From: JoyDelMar < >
Sent: Monday, October 5, 2026 5:20 PM
To: Ashley Jones <[email protected]>
Cc: Mark Maggenti < >; *City Council Group
<[email protected]>; Tracy Martinez <[email protected]>; John Spelich <[email protected]>; Terry Gaasterland <[email protected]>; Dan Quirk <[email protected]>; Meghan Spieker <[email protected]>; Jeff Sturgis < ; [email protected]; ulla rang < >; Julie Maxey
< G. Stuart Mendenhall < Becky Carroll
< ; Andrew Blumenfeld
< >; Jeanne Blumenfeld < >; Jennifer M.
< >; Ethel and Danny Grant < >; Rick
< >; Karen Brindley <[email protected]>; Amanda Lee <[email protected]>; Nestor Machado <[email protected]>; Subject: Re: City Response - Concerns Regarding 10th Street Affordable Housing CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Thanks Ashley, in my experience rules and regulations only work when there is motivation to enforce them and that will be lacking. You are going to keep track of all the cars and who owns them check to see if they are on the street? Then ticket them?
I lived through the construction of City Hall and rules and regulations were NOT enforced! Everyone including code enforcement, parking enforcement, city management etc all looked the other way! Numerous violations occurred almost on a daily basis, I just gave up complaining.

Joy
Sent from my iPhone
On Oct 5, 2026, at 5:09 PM, Ashley Jones <[email protected]> wrote:

Attachment C 124 October 20, 2026 Item 9
6 Hi Joy,
I can assure you that rules and regulations for tenancy at affordable housing developments as I’ve described are absolutely legal and common place. We have a specialized affordable housing legal counsel with Goldfarb & Lipman that can speak to this as we get to that part of the process, and that is what I have known through my experience with affordable housing and redevelopment projects in other communities. There will be a dedicated property management firm overseeing the property, and we will have a lot of eyes on what is going on there due to it’s proximity to City Hall.

Best regards,
Ashley Jones
City Manager
City of Del Mar
1050 Camino Del Mar
Del Mar, CA 92014
(858) 704-3640
[email protected]
From: Joy Ehrenfeld
Sent: Monday, October 5, 2026 4:52 PM
To: Ashley Jones <[email protected]>
Cc: Mark Maggenti < *City Council Group
<[email protected]>; Tracy Martinez <[email protected]>; John Spelich <[email protected]>; Terry Gaasterland <[email protected]>; Dan Quirk <[email protected]>; Meghan Spieker <[email protected]>; Jeff Sturgis < >; [email protected]; ulla rang
>; Julie Maxey < >; G. Stuart Mendenhall
< >; Becky Carroll < >;
Andrew Blumenfeld ; Jeanne
Blumenfeld < >; Jennifer M. < >; Ethel
and Danny Grant < >; Rick < >; Karen
Brindley <[email protected]>; Amanda Lee <[email protected]>; Nestor Machado <[email protected]>;
Subject: Re: City Response - Concerns Regarding 10th Street Affordable Housing Attachment C 125 October 20, 2026 Item 9
7 CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Thanks Ashley,
Your claims that the City can enforce where these low income tenants park, and punish them for parking on the street, for having a big party, for having lots of guests over are probably unconstitutional? All we have are code enforcement and the Sheriff, just like everyone other citizen in Del Mar. Maybe one of the 5 lawyers above can weigh in on this?
Joy
On Oct 5, 2026, at 4:37 PM, Ashley Jones <[email protected]> wrote:

Thanks for the following up, Joy and Mark. What I was referring to is providing examples of, and potentially touring, other established affordable housing developments (either senior or multi-family – once that determination has been made by the Council) to see how they are maintained and managed since we have heard a lot of concerns about potential noise, parking, and maintenance issues. And, in doing that, we can certainly try to identify examples that would be smaller in size.

Best regards, Ashley
From: Mark Maggenti < >
Sent: Monday, October 5, 2026 4:26 PM
To: Joy Ehrenfeld < >
Cc: Ashley Jones <[email protected]>; *City Council Group <[email protected]>; Tracy Martinez
<[email protected]>; John Spelich <[email protected]>; Terry Gaasterland <[email protected]>; Dan Quirk
<[email protected]>; Meghan Spieker
<[email protected]>; Jeff Sturgis
< >; [email protected]; ulla rang
< >; Julie Maxey < >; G.

Stuart Mendenhall < >; Becky Carroll
< ; Andrew Blumenfeld
< >; Jeanne Blumenfeld
< >; Jennifer M. < >;
Ethel and Danny Grant < >; Rick
Attachment C 126 October 20, 2026 Item 9
8 >; Karen Brindley <[email protected]>;
Amanda Lee <[email protected]>; Nestor Machado
<[email protected]>;
Subject: Re: City Response - Concerns Regarding 10th Street Affordable Housing
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

I think Joy's suggestion is perfect. One way to highlight the similarity to the 10th St project numerically would be to show the density (units/acre) of all these other properties. For reference, I believe your current proposal for 10th St is 80 units/acre.
- Mark Maggenti
On Mon, Oct 5, 2026 at 4:09 PM Joy Ehrenfeld < >
wrote:

Hello Ashley,
I’d like to take you up on your offer now rather than later to supply us with a list of very low income, studio apartments in SD that are very well run and fit into a nice residential neighborhood. Something with 8 units or more on a lot of this size or smaller, managed by a private company.

Thanks,
Joy Shadle Ehrenfeld
Attachment C 127 October 20, 2026 Item 9
9 ---------- Forwarded message ---------
From: Ashley Jones <[email protected]>
Date: Mon, Oct 5, 2026 at 2:59 PM
Subject: City Response - Concerns Regarding 10th Street Affordable Housing
To: G. Stuart Mendenhall >, Julie
Maxey < >, Ethel and Danny
Grant < >, Rick and Joy Ehrenfeld
< >, Edita Donnelly
< >, Mark Maggenti
< >, Becky Carroll
< >, ulla rang <
CC: *City Council Group
<[email protected]>, Meghan Spieker
<[email protected]>,
< >, Jeff Sturgis
< , Karen Brindley
<[email protected]>, Amanda Lee
<[email protected]>, Nestor Machado
<[email protected]>
Dear 10th Street Neighbors,
Thank you for reaching out. In response to the
communication below and others submitted to the City; I want to offer some additional information and insight. As part of the City’s certified 6th Cycle Housing Element, the City of Del Mar is required to develop the 10th Street lot at the Civic Center with affordable housing units. You
can find more specific information on the City’s website at:
https://www.delmar.ca.us/852/6th-Cycle-HousingElement-Program-Implem. If the City fails to achieve issuance of building permits for development of the
10thStreet lot by December 2027, we will face serious
legal repercussions from the State. This being the case, the issue at hand is not whether to develop the site, but to ensure it is developed in a way that minimizes impacts and conforms to the character of the neighborhood.

What the City Council will be asked to decide as we
move through the process is the scope of development
for the site, which would include the number of units,
target population (i.e. seniors, families, etc.); design of Attachment C 128 October 20, 2026 Item 9
10 the project; dedicated parking spaces; project amenities; and how the property will be managed. Having worked
on numerous affordable developments of all types in
other communities, I want to assure you that there are
provisions that the City can and will put in place to
ensure the 10th Street property is well-managed and the rules are strictly enforced. The Council will be asked to approve a management plan and rules/regulations for
the property, which will address many of the concerns
raised. Residents will have assigned parking spaces that they will be required to use or face enforcement; they
will be required to keep the exterior of their units clean and tidy; they will be limited as to the activities that can occur on the property (visitors, parties, etc.); and much more. The goal is to develop the site and place residents there that will enhance and blend into the community.

Once we get further along in the process, I would be
happy to provide examples of very well managed and run
affordable housing developments in San Diego that
would be similar to what will be built in Del Mar, so you can check them out for yourself and maybe we can even
schedule a tour.

As I’ve mentioned in prior communications, this process is just starting and there will be lots of opportunity for public input throughout. Bringing an Exclusive
Negotiating Rights Agreement (ENRA) and
Predevelopment Funding Agreement to the Council on
10/20 for approval is just the first step.

Best regards,
Ashley Jones
City Manager
City of Del Mar
(858) 704-3640 (Direct Line)
[email protected]
Attachment C 129 October 20, 2026 Item 9
11 From: G. Stuart Mendenhall <
Sent: Wednesday, September 23, 2026 2:37 PM
To: Ashley Jones <[email protected]>
Cc: Julie Maxey ; *City
Council Group <[email protected]>;
Meghan Spieker
<[email protected]>;
; Jeff Sturgis < >; Rick and Joy Ehrenfeld
< >; Ethel and Danny Grant
< >; Becky Carroll
< >; Edita Donnelly
< >; Mark Maggenti
< >; ulla rang
< >; Karen Brindley
<[email protected]>; Amanda Lee
<[email protected]>; Nestor Machado
<[email protected]>
Subject: re: 10th Street low income housing
CAUTION: This email originated from outside of the
organization. Do not click links or open attachments
unless you recognize the sender and know the content is safe.

September 23, 2026
I am very concerned that the stock answers that seem to imply the city manager and council are not listening to the citizens.

I strongly argue that nothing should be built on that tiny lot at this time.

Do not do it. Do not build impractical ultra-dense housing.

Having a small remnant of nature where we can have a few trees and fauna, kids can see grass and bushes, and pets can touch something other than hot concrete under their paws, is essential to good city design. It is good for the health of all residents. It's good for the physical and Attachment C 130 October 20, 2026 Item 9
12 mental health of neighbors. It's even good for the health of those that work at the Civic Center.

Do we want a livable beautiful city, or performative
compliance?
One small lot, hurting the surrounding community, is not what the state or city needs. It helps nobody and doesn't satisfy requirements anyway.

A real, sustainable solution consists of building an
environmentally efficient complex that can house 100+
people next to transportation, near the fairgrounds. As city council persons you can make a difference. But this is
NOT the way.

Whether 4, 6, or 8 units on this tiny area the size of an R1, this destruction of that city lot does not provide meaningful benefit other than to the few lucky people that secure a below-market transient benefit in effectively slum housing.

It has not been explained who will receive the artificially low rent apartments other than platitudes of 'teachers and firefighters'. Age discrimination is illegal, with very narrow exceptions. Racial, sex, or other protected class
discrimination is illegal.

The average teacher salary for San Diego is $105,000 per year. San Diego district *starting* salary range is $58,600 for the 2024-5 school year. One of our employees is
married to a firefighter who earns $150,000 per year.

Who are these mythical 'teachers and firefighters?' They won't be living there, because they won't qualify. To argue so is to be either misinformed or disingenuous.

This wording for certain 'types' of persons, both by city council members and those advocating, is worrisome. Will subletting be expressly prohibited? Is the city going to enforce the proper use and monitor who is actually living in the units?
One more time, discrimination is illegal and
immoral. Restrictions on ‘use’ to certain desirable
'occupations' and continued talk about occupational
restrictions puts the city council, and thus the city, at great risk.

Attachment C 131 October 20, 2026 Item 9
13 The proposed cramped Del Mar complex built on that lot will lead to easily foreseeable problems.

It is human nature to get territorial, and this could go in both directions. The multitude of new renters, friends and visitors will use the civic center environs as their own common area as they have little own space, and may feel they have a right to primary use, and get used to daily enjoyment. It will become their beautiful all-day retreat with a view.

On the other hand, longstanding Del Mar residents, who
opposed the construction of the below-market rental units, could feel they have more right to use of the beautiful area as they are those that finance it through taxes and market rate purchases.

Will the civic center allow the parking lot to be used for barbecues and parties when the Farmer's market is not in session? Eight units with a few friends creates several dozen people hanging out. There are rules on gathering
restrictions of 25 people, but that is for single group, so multiple groups can easily overwhelm spaces.

We don't even have a police force. Nor do we want to need one.

Extremely low income tenants need access to
affordable staples. Not walkable access to a trendy
new high-end bar with a strict dress code, or gourmet
pet food.

A great view won't put nutritious meals on the
table. Unless the residents become entrepreneurial and
airBNB the rental at market rates out for profit and live in more affordable area. How will the city detect
this? Random checks and a network of snitches? Can a
wealthy lawyer have their retired parent 'qualify' for the low income housing with near-zero income but access to
millions?
Will city council members and civic center staff exclude themselves, their families, and friends from qualifying for the housing, given their conflict of interest being on the governing committee?
Instead of creating myriad problems, perhaps it is better to have sensible design and planning instead, and a city
Attachment C 132 October 20, 2026 Item 9
14 *listen* to its residents.

Remember, nobody can 'selectively enforce' use of the
public area.

Solicitation and panhandling is considered public
speech in California and may take place on Del Mar
public property. Del Mar has no specific additional
statutes. It is illegal to remove a non-aggressive
panhandler.

This will create a minefield. Again, don't do it.

Do not create the Del Mar slum house. Even if it is small.

I urge all city council persons to think of solutions, and not reflexively act to hurt the residents of their own city.

Make sustainable, maintainable, large scale affordable
housing. To accomplish this and fulfill obligations in the interim, Del Mar may sponsor housing and units nearby in One Paseo, or numerous other areas effectively designed for high-density living, to fulfill the state-mandated
obligation. This would be a fraction of the cost of the contractor building and city administering the Del Mar
slums, and much more effective to help the many citizens of California in need, not just a "chosen" few.

G. Stuart Mendenhall, MD
Scripps Memorial Hospital - La Jolla
(10th Street, Del Mar, CA)
On Mon, Sep 21, 2026 at 8:37 PM Ashley Jones
<[email protected]> wrote:

Hi Julie,
Thanks for sharing your thoughts and concerns regarding the City's plans for affordable housing at the 10th Street location. Staff are planning to bring forward an Exclusive Negotiating Rights Agreement (ENRA) with a proposed
developer to the City Council for consideration on
October 6. During the ENRA period, the City will work with Attachment C 133 October 20, 2026 Item 9
15 the developer to conduct site due diligence activities and come up with a recommended scope of development
(number of units, design, targeted resident population, parking, etc.) for Council consideration, all of which will be subject to public input and participation. I highly
encourage you and the surrounding neighbors to stay
engaged and participate throughout the process.

Best regards,
Ashley Jones
City Manager
City of Del Mar
(858) 704-3640 (Direct Line)
[email protected]
-----Original Message-----
From: Juliana Maxey-Allison < >
Sent: Monday, September 21, 2026 10:16 AM
To: Tracy Martinez <[email protected]>; Terry TG.

Gaasterland <[email protected]>; Dan Quirk
<[email protected]>; John Spelich
<[email protected]>; Ashley Jones
<[email protected]>
Cc: Meghan Spieker
<[email protected]>;
Jeff Sturgis < >; Rick and Joy
Ehrenfeld < >; Ethel and Danny
Grant < >; G. Stuart Mendenhall
< >; Becky Carroll
< >; Edita Donnelly
< ; Mark Maggenti
< >; ulla rang
<
Subject: 10 Street low income housing proposal
CAUTION: This email originated from outside of the
organization. Do not click links or open attachments
unless you recognize the sender and know the content is safe.

Attachment C 134 October 20, 2026 Item 9
City of Del Mar
Agenda Report
________________________________________________________________________________________________________ City Council Action:

TO: Honorable Mayor and City Councilmembers
FROM: Denise Galvan, Management Analyst
Sarah Krietor, Administrative Services Manager/City Clerk Via Ashley Jones, City Manager
DATE: October 20, 2026
SUBJECT: 2027 City Council Meeting Schedule and Proposed 2027 City Facility Holiday Closures
REQUESTED ACTION/RECOMMENDATION:

Staff recommends that the City Council: 1) Adopt the Resolution (Attachment A) approving the 2027 City Council Meeting Schedule (Exhibit A to Attachment A) or provide direction to staff regarding changes to the proposed schedule; 2) Provide direction to staff regarding whether to amend the Del Mar Municipal Code (DMMC) to formally change Council meetings to Tuesdays; and 3) Authorize holiday-related closures of City Hall and the Public Works Administrative Office to the public in December 2027.

BACKGROUND:

DMMC Section 2.20.040(A) states that, “Regular meetings of the City Council shall be held on the first and third Monday of each month,” and further states that, “The City Council may, by resolution, designate another date, time, and location for a regular meeting.” The DMMC, and the procedures adopted by the City Council through Resolution 2009-40, require the City Council to annually adopt a meeting schedule for the upcoming calendar year, identify any regular meeting dates to be cancelled, and designate any new dates as regular meetings.

On November 3, 2025, the City Council adopted Resolution 2025-34 setting the 2026 City Council Meeting Schedule. The adopted schedule reflected the Council’s decision to proceed with a pilot program for an alternative Tuesday meeting schedule. The pilot program was intended to allow the City Council to evaluate whether a Tuesday meeting schedule would work well for the City with the understanding that the Council could adopt an ordinance amending the meeting schedule in the DMMC to establish Tuesdays as the regular meeting day.

DISCUSSION/ANALYSIS:

Proposed 2027 City Council Regular Meeting Schedule
The change to Tuesday meetings provides the Council and the public additional time to review agenda materials and related red-dot communications. From a staff perspective, it allows more time to prepare presentations, answer Council questions, and review public comments. Holding meetings on Tuesdays also avoids conflicts with many designated 1 October 20, 2026 Item 10
City Council Agenda Report
2027 City Council Meeting Schedule and 2027 Holiday Closures October 20, 2026