Apartment complex plans aligned with San Diego’s Complete Communities housing-crisis alleviation await permit issuance as several local businesses in the same shopping center face imminent closure.

Residents in a Del Cerro neighborhood have expressed concerns about plans for an apartment complex at Del Cerro Boulevard and Madra Avenue. These approximate plans include a 6-story building with 114 units and one story of parking containing 146 parking spots (see related story at sdnews.com/two-key-items-of-interest-grabbing-attention-of-del-cerro-residents/).

The plans come at a time when housing is a pressing issue within California, impacting both state law and local municipal codes. The developer of this location is utilizing two programs the state and City have made available in an effort to alleviate the housing crisis: Complete Communities and the Transit Priority Area (TPA) Law.

Jeff Katz, owner of the property and president of Tapestry Development Company, the project’s developer, explained his reason for creating these plans.

“I’ve lived in Del Cerro for 30 years, and I’ve never seen homelessness this bad, and I’ve never seen so many people who are leaving or struggling to get by because of how expensive housing is,” Katz said.

One employee sad to lose customers

However, the current business owners located at the property, Madra Liquor and Deli and Define U Fitness, are now having to close up shop before year’s end.

Oscar Ramos has been working at Madra Liquor & Deli for 25 years and is figuring out his next step when the lease expires on Nov. 30.

“I’m sad because all the customers here, they are my family,” said Ramos. “I’m working here everyday. I don’t have time to look for another place, for another business, so my boss wants to end everything here — no more business, no more pizzas.”

Ramos said he first heard talk regarding the end of the lease about a month ago, but these plans have been in staging much longer.

“We spent about 18 months working with the City under its approved process,” said Katz. “We knew when we submitted for building permits that it was a project that would meet all the requirements.”

According to Gary Geiler, assistant director for the City of San Diego Development Services Department (DSD), the developer also went through a series of preliminary reviews.

“They went through four rounds of preliminary review with the City to understand the site, the constraints and the regulations in place at the time,” said Geiler. “They probably have a really good set of plans at this point that they were prepared to submit [for reviews].”

These preliminary reviews are a guiding resource for developers as they create conceptual plans to eventually submit for official review. According to Geiler, the first preliminary review was submitted in August 2020, followed by subsequent preliminary reviews in November 2020, November 2021 and March 2022.

Tapestry submitted an official application for a permit on June 21, 2022, which went to reviewers in July and August. Geiler said after one round of official reviews is complete, a second and third review process will most likely commence.

Currently, the application has received review solely from the DSD because it’s categorized as a process one permit application.

“The process one ministerial approvals are based on the scope of work, whether it complies with the use regulations and development regulations,” said Geiler. “If [one] wants to build an apartment complex, we have to verify the zone. Does the zone allow that use? Does it allow a certain density? Is the building they’re proposing fit within the development regulations of the zone? If it meets the regulations of the zoning code and building code then it is approved under the process one approval.”

NCPG not involved in planning process due to process one permit

Because of the process one status, the Navajo Community Planning Group (NCPG), which is involved in representing residents’ concerns around community issues like housing and maintaining the community plan, could not take part in the planning process, according to David Smith, chair of the NCPG.

“We are not involved at all in the planning because it’s a process one permit,” said Smith. “The planning group’s primary focus is land use issues or deviations. That’s the only time we step in to have any oversight or make a recommendation to the planning department.”

When it comes to Complete Communities and TPA, this program and TPA law allow developers to utilize certain deviations to help planning progress.

Katz wrote in a press release about how Cerro House fits these criteria, “Located in a city-designated Transit Priority Area (TPA), Cerro House is the first development to come to Del Cerro under the City of San Diego’s new ‘Complete Communities’ Initiative signed by former Mayor Kevin Faulconer in 2020 which aimed to incentivize housing growth near public transportation and existing amenities.”

Although Complete Communities was implemented prior to Councilmember Raul Campillo (District 7) taking office, Campillo said, in reference to Complete Communities, “Increasing the housing stock in San Diego while maintaining the character of our neighborhoods always presents a challenge. I believe where there’s the will, there’s a way.”

Smith explained how Complete Communities impacted the process of a plan like this.

“The developer can utilize the complete community package that awards them five deviations, or I’m going to call them five cards,” said Smith. “Those cards can be used to override things such as the existing land use, the height limit and the units per acre. They’re allowed to give them these five cards if they’re going to guarantee the City they’re going to be building a higher portion of affordable housing units in that project.”

In regard to TPA, the City website states parking regulations under TPA “allow for more multifamily residential units to be built without parking to lower housing costs and encourage residents to use alternative modes of transportation such as walking, biking and transit.”

Moreover, Smith said, “The TPA existing law says if you’re a half-mile from a major existing transit route then you’re within a TPA.” This location is within a half-mile radius of the College Avenue & Del Cerro Boulevard stop.

In addition to TPA and Complete Communities, base zone requirements are determined by the development standards of Del Cerro’s community plan. This property is also located in two overlay zones — the airport and parking overlay zones which determine the building’s height limit and number of required parking spots.

“If they didn’t meet these overlay zone regulations then it could trigger a discretionary review,” said Geiler.

A discretionary review would escalate the review process to two or higher, which allows the NCPG to become involved in the approval process. Since the application is still a process one, planning approval will remain between the developer and the City, according to Smith.

“I know a lot of people are up in arms about it because it’s going to impact traffic and the schools, but unfortunately, there’s nothing we’re going to do as a community planning group to stop it,” said Smith. “We have asked the applicant/owner to come to NCPG as an information item to set the record straight. I haven’t gotten an answer back.”

According to Katz via email, they have received feedback from residents.

“We have appreciated the feedback we have received,” Katz said. “Some people have emailed to ask when the project will be complete and want to add their name to the waiting list for a home. Cerro House is being built by people who live in this community, work in this community, love this community and want our community to succeed.”

Smith said housing plans like Cerro House will most likely continue to surface throughout San Diego.

“This transit priority law and the adoption of it by the City of San Diego after the state did it, and the adoption of this Complete Communities housing reform that came from the mayor, these things are happening all the time at a city level, which are all public,” said Smith. “That’s why we as a planning group try to help understand these things and talk about them at our meetings. We try to figure out how to comment to the city on this type of reform. A lot of times I hear cries for help, but if you didn’t want housing, you needed to lobby the city.”

Cerro House has not received permit approval from DSD yet, but more information on the plans can be found at: cerrohouse.com/.

Editor’s note: Mission Times Courier made several attempts to talk with the ownership at Define U Fitness but did not hear back prior to going to press.