California says San Diego officials could reject PB tower
Add Axios as your preferred source to
see more of our stories on Google.

Illustration: Trent Joaquin/Axios
California housing officials have put a controversial decision to approve or deny a Pacific Beach high rise in the hands of San Diego leaders.
Why it matters: The PB tower has become a flashpoint in the ongoing fight between those looking to spur development to combat a housing shortage, and neighborhood groups arguing those efforts come at the expense of their quality of life.
Driving the news: The state confirmed last week the project can use California's density bonus law to exceed the 30-foot height limit on new buildings near the coast.
- That's how developers managed to propose a 240-foot building in the coastal height-limit area, with 74 apartments and 139 hotel rooms, despite zoning restrictions that allow only 31 apartments.
How it works: The density bonus law lets developers exceed local zoning if they reserve a certain percentage of units for residents with income restrictions. The tower at 970 Turquoise Street would set aside five units for very low-income residents and another five for moderate-income residents.
- But Kalonymus, the developer, plans to make the hotel rooms indistinguishable from apartments, and rent them out under long-term leases, essentially providing 213 units, beyond what the full density bonus would allow.
Between the lines: Although the state confirmed the project's eligibility, it also said city officials can deny the project if they can prove that the exemptions the developer requested aren't necessary for providing the income-restricted housing.
- That gives local leaders a chance to reject the proposal, but they'd need to be prepared to back up their argument in court.
What they're saying: Representatives for the city and the developer both told the Union-Tribune that the letter was good news.
- "We have options," a mayoral staffer said.
- "The letter confirms what we have consistently maintained: The project fully complies with state law," a developer spokesman said.
What's next: The city will now ask the developer to provide evidence that each waiver is needed to make the affordable housing pencil out.
- The mayor's office thinks the letter will also prohibit the developer from renting out hotel rooms as long-term housing, the U-T reported.
- A final decision is not on the immediate horizon.
