HomeMy WebLinkAbout2025-08-20; Planning Commission; 01; Inns of America - Conversion of an existing three-story, 98-guest room hotel into a 98-unit multi-family dwelling on a 3.12-acre siteMeeting Date: August 20, 2025
Planning Commission
ltem 0
To:
Staff Contact: Lauren Yzaguirre, Senior Planner; 442-339-2634;
lauren.yzaguirre@carlsbadca.gov
Subject: Inns of America -Conversion of an existing t hree-story, 98-guest room hotel into
a 98-unit multi-family dwelling on a 3.12-acre site
Location:
Numbers:
Applicant/Representative:
CEQA Recommendation:
5010 Avenida Encinas / 210-090-52-00 / District 2
AMEND 2024-0008/CUP 2024-0009/ PUD 2024-0009 (DEV99017)
Jim McMenamin, 858-705-0242, jmcmenamin@all-dev.com
D Not a Project [81 Exempt D IS/ND or 15/MND D EIR
D Other:
Permit Type(s): D SDP IZI CUP ~ CDP □ TM/TPM □ GPA D REZ D LCPA
[81 Other: CDP Amendment, PUD
Commission Action: □ Decision IZI Recommendation to City Council D Informational (No Action)
Recommended Actions
That the Planning Commission ADOPT the Planning Commission Resolution (Exhibit 1) RECOMMENDING
APPROVAL of a CEQA exemption determination, Coastal Development Permit Amendment {AMEND 2024-0008),
Conditional Use Permit (CUP 2024-0009), and Planned Development Permit (PUD 2024-0009), based on the
findings and subject to the conditions contained therein.
Existing Conditions & Project Description
Existing Setting
The subject site consists of a 3.12 acre,
135,907 square foot, lot located at 5010
Avenida Encinas, on the southeast corner of
Cannon Road and Avenida Encinas (Exhibit
2), and is within the Mello II segment of the
city's Local Coastal Program and Local
Facilities Management Zone 3. The site is
currently developed, with a 98-guest room,
65,763-square-foot hotel. Guest rooms
consist of one-bedroom and studios ranging
in size from 357 square feet to 742 square
feet. Guestrooms contain kitchens with
refrigerators, microwaves, stoves and
dishwashers. The site includes a swimming
pool and spa, exercise room, business
Aug.20,2025
Site Map
Item #1 1 of 202
center, 123 surface parking spaces and
landscaping. The existing structure consists
of a contemporary southwest architectural
style. Topographically, the site has a slight
upward slope from Cannon Road and
Avenida Encinas and currently takes vehicle
access from Avenida Encinas.
Table "A" below includes the General Plan designations, Zoning, and current land uses of the subject site and
surrounding properties.
TABLE A -SITE AND SURROUNDING LAND USE
Location General Plan Designation Zoning Designation Current Land Use
Planned Industrial Hotel
Site Planned Industrial (Pl) (PM)/Commercial Visitor-Serving
Overlay Zone
Commercial-Tourist and Qualified Gas station and
North Visitor Commercial (VC) Development Overlay (C-T-Q) convenience store
/Commercial Visitor-Serving
Overlay Zone
Planned Industrial (PM) Offices
South Planned Industrial (Pl) /Commercial Visitor-Serving
Overlay Zone
East Transportation Corridor (TC) Transportation Corridor (T-C) Interstate 5
Residential, 23-30 dwelling Residential Density-Multiple (RD-Parking lot
West units per acre (R-30) M) /Commercial Visitor-Serving
Overlay Zone
General Plan Designation(s) Zoning Designation(s)
Aug.20,2025 Item #1 2 of 202
Proposed Project
The applicant proposes to convert an existing 65,763-square-foot, 98-guestroom hotel into a 98-unit multi-family
dwelling. No additional square footage will be added to the existing building. The existing structure is three stories
and 36.8-feet tall with three architectural towers at 43.3, 45.5, and 45.6 feet tall. The project site includes 123
uncovered surface parking spaces, 98 of which will be assigned to the residential units. The remaining 25 parking
spaces will be used as visitor spaces, loading spaces and mail delivery spaces. The existing outdoor swimming pool
and spa will remain on site to serve as an active community recreation space for future residents. New active
community recreation spaces, including a dog run and pickleball courts, are proposed.
The project includes the following improvements:
Site Improvements
• Two pickle ball courts (4,363 square feet total, surrounded by 6-foot-tall fencing)
• 1,070 square foot dog run area enclosed by 6-foot-tall fencing
• 288 square foot bike and surfboard storage enclosure
• New landscaping (rehabilitate existing/replace dead planting)
Building Exterior Improvements
• Repaint entire structure
Unit Interior Improvements
• Update and renovate the interior (repaint, remove and replace window coverings, cabinets,
counter tops, appliances, flooring, light fixtures, plumbing fixtures, hardware)
• New heating/air units as needed
• Modify electric to meet residential requirements
First Floor Interior Improvements
• Update existing 379 square foot fitness room
• Update existing 383 square foot laundry room
• Convert existing 227 square foot housekeeping room into storage
• Convert existing 293 square foot pantry/commercial kitchen into storage
• Convert existing 1,358 square foot lounge into clubhouse/coworking space
• Convert 493 square foot meeting room into game room
• Convert 710 square foot office space (registration/administration/sales/business
center/manager office) into 280 square foot food and beverage area within the clubroom,
112 square foot leasing office, 140 square foot mail room, and 237 square foot package
room
• Renovate restrooms
• Repaint and replace flooring in hallways
Second Floor Interior Improvements
• Convert existing 199 square foot housekeeping room into storage
• Convert existing 150 square foot engineer storage into storage
• Convert existing 158 square foot vending and guest laundry into resident laundry
• Repaint and replace flooring in hallways
Third Floor Interior Improvements
• Convert existing 199 square foot housekeeping into storage
• Convert existing 50 square foot vending space into storage
• Convert existing 257 square foot employee restrooms into storage
Aug.20,2025 Item #1 3 of 202
• Repaint and replace flooring in hallways
The project is within the Planned Industrial (Pl) land use designation, which does not designate a density for the
site. However, the site's zoning, Planned Industrial (P-M) zone, allows for a maximum residential density of 40
dwelling units per acre, if approved by the City Council (CMC section 21.42,140(8)(135)). The project's base
density, or the number of units allowed on the project site, is 125 units (40 dwelling units per acre x 3.12 acres).1
The applicant is seeking to qualify the project under Government Code §65915 et seq., the State Density Bonus
Law, which would entitle the developer to increase the density of the project by 20% in return for designating at
least 5% of the base dwelling units (7 unit of 98 units) affordable to very low-income households or 10% of the
base dwelling units (13 unit of 98 units) affordable to low-income households. The density bonus that is
authorized by State law (Gov. Code §65915 et seq.) is set on a sliding scale based upon the percentage of
affordable units in the project, ranging from 5% to 50% additional units over the base number of units permitted
pursuant to the General Plan.
With the 20% density bonus, the maximum number of residential units al lowed on the site is 150 units, with 15
of those required to be restricted as affordable to very low-income households (per State Density Bonus Law).
The developer has chosen to convert the existing 98 guest rooms into 98 residential units, rather than the 150
units allowed under State law. However, by providing the affordable units, State Density Bonus law also entitles
the developer to other incentives intended to help make the development of affordable housing economically
feasible, including but not limited to reduced parking requirements and concessions and waivers such as
reduced setbacks and minimum square footage requirements. The project is proposing four (4) density bonus
waivers that are discussed in Exhibits 4 and 5.
In addition to the affordable units provided for the project to be granted a density bonus under State law, the
developer is required to comply with Carlsbad's lnclusionary Housing Ordinance. Under the inclusionary
ordinance, developments proposing a total of seven or more units must provide at least 15% of the
development's base density units as affordable to lower income households. Th is project is required to provide
fifteen (15) units restricted to lower-income households (98 units x 15% = 15 units (14.7 rounded up).
The project has proposed a total of 15 affordable units, of which 7 are very low-income units, 5 are low-income
units, and 3 are moderate-income units. The combined affordable units satisfy both the State Density Bonus Law
and lnclusionary Housing Ordinance requirements. The proposed composit ion of income levels is an average of
74% of Area Median Income, which meets the requirement (average not to exceed 80% low-income affordability
level) allowable under the city's alternatives identified in Council Policy 57. The fifteen affordable housing units
will be secured through a recorded affordable housing agreement and made affordable for targeted income
categories for a period of 55 years.
The existing architectural design of the project is a contemporary southwest style featuring mission style barrel
roofing, light tan stucco, and tan eave and rafter tails. Architectural towers, accent banding and metal railings on
the second and third floor windows provide visual interest. The primary entrance includes a large drive-up patio
cover supported by columns with decorative tiles. Primary building materials include sand finish stucco, cut coarse
stone, and composite wood siding.
Grading quantities include 180 cubic yards of cut, 20 cubic yards offill, and 169 cubic yards of remedial grading. A
grading permit will be required for the project.
1 Potential unit yield are calculations are based on CMC provisions (Chapter 21.53). However, in the context of State Density Bonus Law,
fractional units are rounded up to the next whole number. Therefore, the proposed project's base density is rounded up from 124.8
dwelling units to 125 dwelling units.
Aug.20,2025 Item #1 4 of 202
Public Outreach & Comment
The Developer has completed the Early Public Notice procedures pursuant to City Council Policy No. 84
(Development Project Public Involvement Policy). A notice of project application was mailed on Dec. 22, 2024, to
all owners of property located within a 600-foot radius and all residents within a 100-foot radius of the project
site. A two-foot-tall by three-foot-wide yellow sign was also posted at the project site on Dec. 22, 2024, notifying
all pass-by traffic of the project, which provides project name, application numbers, description, as well as both
Developer and city staff contact information. A total of 37 property owners and occupant notifications were
mailed the notice of project application.
In addition to the above, the Developer also completed the Enhanced Stakeholder Outreach Program pursuant
to City Council Policy No. 84 (Development Project Public Involvement Policy). In this case, the Developer mailed
an information packet with a postage-paid mail-back comment form to all owners of property located within a
600-foot radius and all residents within a 100-foot radius of the project site. The information packet included a
detailed description of the project, along with the site plan, topographic survey, colored elevations and colored
rendering. The developer also included a pre-paid stamped envelope and a comment card.
A total of six (6) comments were received as a result of the early public notice and enhanced stakeholder
outreach. Five (5) of the comments were in support of the project with one of the comments in support also
expressing opposition to the pickleball courts due to noise. A Noise Study prepared by dBA Associates, Inc. dated
Mar. 4, 2025, was submitted to evaluate land use compatibility, traffic noise, and on-site project generated
noise sources (e.g., outdoor-pickle ball courts). The project includes out door recreation space, including an
existing swimming pool and a new dog run and pickle ball courts. These exterior use areas will not be subject to
noise exposure levels that exceed the City's 65 decibel (dBA) Community Noise Equivalent Level (CNEL)
standard. Noise levels at the outdoor use areas would range from roughly 55-63 dBA CNEL pursuant to the Noise
Element of the General Plan. Therefore, the project complies with the exterior noise exposure levels and policies
of the General Plan Noise Element.
One comment received in opposition expressed concern with the number of units on site and the lack of kitchen
appliances for each unit. Staff clarified that all proposed units w ill be required to meet t he California Building
Code for residential dwelling units, which will require installation of independent and fully compliant cooking
facilities. All comments submitted are documented in the administrative record. The stakeholder outreach
report and public comments are attached to the staff report (Exhibit 8).
Project Analysis
General Plan Consistency
The project site has a General Plan Land Use designation of Pl, Planned Industrial which is intended to
provide and protect industrial lands primarily for corporate office, research and development and
manufacturing uses while also provide supporting ancillary uses. The City of Carlsbad General Plan includes
several goals and policies that guide development and land use within the city. A discussion of how the
project is consistent with the applicable General Plan policies is summarized in Exhibit 4.
M unicipal Code Consistency
The City of Carlsbad Municipal Code (CMC), most notably Tile 21 Zoning Code, includes requirements and
provisions that guide development and land use within the city, consistent w ith the Genera l Plan. The project is
required to comply with all applicable regulations and development standards of the CMC including those for
the Planned Industrial (P-M) zone (CMC Chapter 21.34) and Planned Developments (CMC Chapter 21.45).
Specific compliance with these relevant requirements is described in Exhibit 4.
Aug.20,2025 Item #1 5 of 202
Local Coastal Program Consistency
The project site is in the Coastal Zone and requires a Coastal Development Permit. The project complies with the
Local Coastal Program (Mello II Segment), including all goals and policies of the General Plan and all zoning code
standards, as referenced above. Additional information on the Coastal Development Permit and Local Coastal
Program findings is included in Exhibit 4.
State Density Bonus
The Developer is seeking to qualify the project under Government Code §65915 et seq., the State Density Bonus
Law, not to increase the allowed density, but to access the associated benefits such as incentives, concessions,
and waivers. The law allows developers to exceed local density limits in exchange for reserving a portion of units
as affordable housing for at least 55 years; however, it also provides benefits to projects that meet affordability
thresholds even when proposed densities remain within the maximum allowed under local zoning. Projects that
include qualifying percentages of affordable units may request incentives or concessions from certain
development standards, provided the modifications result in "identifiable and actual cost reductions" that
facilitate the provision of affordable housing. Addit ionally, deviations from applicable development standards
may be granted when necessary to accommodate the density permitted under State law. 2
The 3.12-acre project site is located in the Planned Industrial (P-M) zone, which allows for residential
development at a density of up to 40 dwelling units per acre, subject to City Council approval. This equates to a
maximum base density of 124.8 units (3.12 acres multiplied by 40 units per acre), which is rounded up to 125
units in accordance with the State Density Bonus Law. The developer is requesting to convert the existing 98
guest rooms into 98 total residential units, which is below the maximum number of units allowed on site (if
approved by the City Council), while reserving 5% of the total units (7 units) for very-low-income households.
This qualifies the project as a State Density Bonus project and entitles it to request incentives, concessions, or
waivers as provided under the law.
The project has proposed 7 very low-income units, 5 low-income units and 3 moderate-income units, which
satisfies both the State Density Bonus Law and lnclusionary Housing Ordinance requirements. The proposed
composition of income levels is 74% of Area Median Income, which meets the average requirement (80% low-
income affordability level) allowable under the city's alternatives identified in Council Policy 57.
Pursuant to CMC Section 21.86.060 of the Density Bonus Ordinance, a project can request incentives,
concessions and waivers as defined in State Density Bonus Law, based on t he percentage of affordable units.
Specifically, the developer is requesting (4) waivers from development standards of the Carlsbad Municipal Code
as listed below and included in Exhibit 5. Pursuant to State Density Bonus Law there is no limit to the number of
waivers an applicant can request, as long as the waiver does not cause a specific adverse impact on public health
or safety, an adverse impact on property listed on the California historical register or would violate state or
federal law.
Waivers
1. Waiver of CMC lnc/usionary Housing Standard 21.85.030(C) requiring developments which provide 10 or
more units affordable to lower-income households to provide at least 10% of the lower-income units as
three or more bedrooms.
2. Waiver of CMC Residential Planned Development Standard 21.45.060 (Table CJ (C.2) requiring dwelling
units odjocent to any arterial road shown on the Circulation Element of the General Plan to observe a
2 Refer to Exhibit 6 for an info-bulletin that provides more information on how State Density Bonus Law works.
Aug. 20, 2025 Item #1 6 of 202
fully landscaped setback of 40 feet from prime arterial roads (40 feet setback from Cannon Road
required -0 feet proposed for active community recreational space).
3. Waiver of CMC Planned Development Standard 21.45.060 (Table C) (C.9) requiring community recreation
spoce of 200 squore feet per unit (19,600 square feet required -15,518 square feet proposed).
4. Woiver of CMC Planned Industrial Zone Development Standard 21.34.0l0(A) requiring a maximum
building height of 35 feet with architectural projections permitted up to a maximum height of 45 feet
(existing roof ridge 36.9 feet, exiting north tower 45.6 feet, exiting south tower 45.5 feet)
lnclusionary Housing Ordinance
Pursuant to CMC Chapter 21.85, lnclusionary Housing Ordinance, 15% of t he base units, or 15 units, shall be
constructed and restricted both as to occupancy and affordability to lower-income households; 98 units X 15% =
15 unit (14.7 rounded up). The 7 very low-income, 5 low-income and 3 moderate-income units, which total
fifteen (15) proposed satisfies both the State Density Bonus requirements and the lnclusionary Housing
Ordinance requirements.
Housing Crisis Act of 2019 (HCA)
This project is subject to California Gov. Code §65589.5(j)(1), which states when a proposed housing
development project complies wit h the applicable objective general plan, zoning, and subdivision standards and
criteria that were in effect at the time that the application was deemed complete, cities shall not disapprove the
project or impose a condition requiring lower density unless the city finds based on a preponderance of
evidence that the project would have a specific, adverse impact on public health and safety, or there is no
feasible method to satisfactorily mitigate or avoid such adverse impact. A "specific, adverse impact" means a
significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public healt h or
safety standards, policies, or conditions as they existed on the date the application was deemed complete; and
there is no feasible method to satisfactorily mitigate or avoid the adverse impact, other than the disapproval of
the project or the approval of the project upon t he condition that it be developed at a lower density.
There is no preponderance of evidence that the project would have a specific, adverse impact on public health
and safety. The design of the site development and the types of improvement would not cause serious public
health or safety problems since the project would not degrade the levels of service on the adjoining streets,
drainage system, public facilities, and city sewer and water is available to t he site or can be provided. The
project's proposed street alignments, grades, and widt hs; drainage and sanitary facilities and utilities, including
alignments and grades thereof; location and size of all required easements and right-of-way; lot size and
configuration; and traffic and emergency response access were all reviewed for compliance to relevant city
policies and codes. The proposed deviations (i.e., waivers requested as part of the proposed density bonus,
which are permitted pursuant to State Density Bonus Law), supplement the developer's land use application to
avoid restrictive zoning limitations that would preclude the project as it has been designed and submitted to the
city.
Discretionary Actio_,s & Findings
In addition to the Amendment to Coastal Development Permit CDP 9-006 (AMEND 2024-0008) required for
development within the Coastal Zone, the following discretionary actions are requested. Additional information
on the Coastal Development Permit Amendment and Local Coast al Program findings is included in Exhibit 4.
Conditional Use Permit CUP 2024-0009
Pursuant to CMC Section 21.34.020, P-M Planned Industrial Zone, approval of a Major Cond itional Use Permit is
Aug.20,2025 Item #1 7 of 202
required for residential uses in the P-M zone. Staff finds that the required findings for this application can be
met (Exhibit 1).
Planned Development Permit PUD 2024-0009
Pursuant to CMC Section 21.42.140(8)(135), Minor Conditional Use Permits and Conditional Use Permits,
approval of a Major Planned Development Permit is required for residential uses in the P-M zone. Staff finds that
the required findings for this application can be met (Exhibit 1).
Environmental Review
Prior to final action by the decision-making body on the project, an environmental determination shall be made
by the appropriate decision-makers as part of the approval action to ensure agency compliance with the California
Environmental Quality Act (CEQA).
Staff has reviewed the scope of the project and applicable studies provided by the applicant and finds that the
project belongs to a class of projects that the State Secretary for Resources has found do not have a significant
impact on the environment, and it is therefore categorically exempt from the requirement for the preparation of
environmental documents pursuant to CEQA in accordance with CEQA Guidelines §15332 (In-Fill Development
Projects):
• The project is consistent wit h the General Plan as well as the zoning ordinance in terms of land use,
density, and development standards.
• The project is within the city limits, is less than five acres in size, and is surrounded by urban uses.
• Because the site contains only non-native and ornamental vegetation, the site has no value as habitat for
endangered, rare, or threatened species.
• Approval of the project would not result in any significant effects relating to traffic (as verified by the
Vehicle Miles Traveled Ana lysis prepared by Linscott, Law, and Greenspan Engineers dated June 10, 2025),
noise (as verified by the Noise Study prepared by dBA Associates, Inc. dated Mar. 4, 2025), air quality (as
verified by the Air Quality Technical Memorandum prepared by BlueScape Environmental dated May 22,
2025), or water quality.
• The subject site is served by public and private utilities, including the city's water, sewer, and electrical
utilities. The subject site has access and is served directly from Avenida Encinas which is an existing
developed roadway w ith existing utilities. Water infrastructure in the vicinity of the project site is
maintained and operated by CMWD. Sewer service is currently provided by the City of Carlsbad to the
project site via the existing public sewer system in the vicinity of the project. Water service for domestic
and fire protection uses would be provided via the existing water connections to the existing public water
system. Furthermore, the project may be required to pay the required water connection fees if
determined to be necessary to help offset the project's contribut ion to the city's water collection
infrastructure needs. Sewer service would be provided via the existing sewer connections to the existing
public sewer system. Utilities staff indicated t hat facilities to service the proposed project are reasonably
expected to be available within the next five years. Therefore, the site can be adequately served by all
required utilities and public services.
A draft Notice of Exemption is included as Exhibit 9. This must be reviewed and considered prior to approval of
the project. The draft Notice of Exemption demonstrates that t he project qualifies for the exemption -and that
none of the exceptions to categorical exemptions listed in the CEQA Guidelines Sect ion 15300.2 or Chapter
19.04 of the CMC have been triggered. As part of an additional and optional public disclosure, the draft Notice of
Aug.20,2025 Item #1 8 of 202
Exemption was posted on the city's website on July 10, 2025, and an email was sent to all interested parties that
have expressed interest in this project or have signed up to receive environmental notices.
Conclusion
Considering the information above and in the referenced Exhibits, staff has found that the proposed project is
consistent with all applicable policies of the General Plan, Local Coastal Program, provisions of the Municipal
Code, and Loca l Facilities Management Zone 3. All required public improvements and utilities are available to
serve the proposed development. In addition, there are no environmental issues associated with the project.
The project is conditioned to ensure the proposed project's compatibility with the surrounding properties and
that the public health, safety, and welfare of the community are maintained. The project would be required to
comply with all applicable California Building Standards Codes and engineering standards through the standard
building permit and civil improvement plan checking process. Staff recommends the Planning Commission adopt
the resolution recommending approving the project, as described in this staff report.
Exhibits
1. Planning Commission Resolution
2. Location Map
3. Disclosure Statement
4. Project Analysis
5. Supplemental Application -Density Bonus Checklist
6. Informational Bulletin IB-112 -State Density Bonus Law
7. Informational Bulletin IB-157 -lnclusionary Housing Program
8. Stakeholder Outreach Report and Public Comments
9. Draft Notice of CEQA Exemption
9.1 Vehicle Miles Traveled Analysis
9.2 Noise Study
9.3 Air Quality Memorandum
10. List of Acronyms and Abbreviations
11. Reduced Exhibits
12. Full Size Exhibits "A" -"GG" dated Aug. 20, 2025 (on file in the Planning Department)
Aug.20,2025 Item #1 9 of 202
Exhibit 1
PLANNING COMMISSION RESOLUTION 7548
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
CARLSBAD, CALIFORNIA, RECOMMENDING APPROVAL OF A CEQA
EXEMPTION DETERMINATION, COASTAL DEVELOPMENT PERMIT
AMENDMENT, CONDITIONAL USE PERMIT, AND PLANNED
DEVELOPMENT PERMIT TO ALLOW FOR THE CONVERSION OF AN
EXISTING THREE-STORY, 98-GUEST ROOM HOTEL INTO A 98-UNIT MULTI
FAMILY DWELLING ON A 3.12-ACRE SITE LOCATED AT 5010 AVENIDA
ENCINAS, WITHIN THE MELLO II SEGMENT OF THE LOCAL COASTAL
PROGRAM AND WITHIN LOCAL FACILITIES MANAGEMENT ZONE 3.
CASE NAME: INNS OF AMERICA
CASE NO.: AMEND 2024-0008/CUP 2024-0009/PUD 2024-0009
(DEV99017)
WHEREAS, Jim McMenamin, Alliance Development Services, Inc., "Developer," has filed a
verified application with the City of Carlsbad regarding property owned by Cannon Road, LLC,
"Owner," described as
THAT PORTION OF LOT H OF RANCHO AQUA HEDIONDA, IN THE CITY OF
CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA,
ACCORDING TO MAP THEREOF NO. 823, FILED IN THE OFFICE OF THE
COUNTY RECORDER OF SAN DIEGO COUNTY, NOVEMBER 16, 1896.
("the Property"}; and
WHEREAS, said verified application constitutes a request for a Coastal Development
Permit Amendment, Conditional Use Permit and Planned Development Permit as shown on Exhibit(s} "A"
-GG" dated Aug. 20, 2025, on file in the Planning Division, AMEND 2024-0008/CUP 2024-0009/PUD
2024-0009 (DEV99017) -INNS OF AMERICA, as provided by Chapter 21.34, 21.42, 21.45, and 21.201 of
the Carlsbad Municipal Code; and
WHEREAS, the Planning Commission did, on Aug. 20, 2025, hold a duly noticed public
hearing as prescribed by law to consider said request; and
WHEREAS, at said public hearing, upon hearing and considering all testimony and
arguments, if any, of persons desiring to be heard, said Commission considered all factors relating to the
Coastal Development Permit Amendment, Conditional Use Permit and Planned Development Permit.
Aug. 20,2025 Item #1 10 of 202
NOTICE
Please take NOTICE that approval of your project includes the "imposition" of fees, dedications,
reservations, or other exactions hereafter collectively referred to for convenience as "fees/exactions."
You have 90 days from date of final approval to protest imposition of these fees/exactions. If you protest
them, you must follow the protest procedure set forth in Government Code Section 66020(a), and file the
protest and any other required information with the City Manager for processing in accordance with
Carlsbad Municipal Code Section 3.32.030. Failure to timely follow that procedure will bar any subsequent
legal action to attack, review, set aside, void, or annul their imposition.
You are hereby FURTHER NOTIFIED that your right to protest the specified fees/exactions DOES NOT
APPLY to water and sewer connection fees and capacity charges, nor planning, zoning, grading, or other
similar application processing or service fees in connection with this project; NOR DOES IT APPLY to any
fees/exactions of which you have previously been given a NOTICE similar to this, or as to which the statute
of limitations has previously otherwise expired.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the Planning Commission of
the City of Carlsbad, California, held on Aug. 20, 2025, by the following vote, to wit:
Aug. 20,2025 Item #1 25 of 202
August 15, 2025
Jeff E. Johnson, Esq.
15055 Paso del Sol Del Mar, CA 92014
858.353.2397 JeffJca622@gmail.com
Re: Project proposed at 5010 Avenida Encinas, Carlsbad, 92008 (APN 210-090-52-00)
AMEND 2024-0008/CUP 2024-0009/ PUD 2024-0009 (DEV99017) -INNS OF
AMERICA
Dear Chair and Planning Commission Members:
As a property owner in the City of Carlsbad, I write in support of this project. Not only
will it renovate and repurpose the property, this plan will add 98 much needed units of
workforce housing to our community. I see nothing but a win-win in this ingenious
transformation of an underutilized motel property into a robust source of housing without
adding density to the community.
I hope that you will agree and I urge you vote to approve this attractive and important
proposal.
Page 1 of1
Item 1 - Correspondence Received by 3pm, 8-18-2025
Inns of America
Community Development Department
Lauren Yzaguirre, Senior Planner
August 20, 2025
AMEND 2024-0008/CUP 2024-0009/ PUD 2024-0009
1
Project Location
2
•5010 Avenida Encinas
•3.12 acres
•65,763 sf 98-guestroom
hotel
•Pool/spa
•123 parking spaces
3
General Plan Zoning
Project Proposal
•Convert existing 65,763-square-foot, 98-
guestroom hotel into 98-unit multi-family
dwelling.
•No additional square footage will be added to
the existing building.
•Interior renovations
•Site improvements
INNS OF AMERICA
4
Project Features
98 apartment units 31.4du/ac
15 affordable units
123 parking spaces
2 pickleball courts
1,070 square foot dog run area
288 square foot bike/surfboard storage
INNS OF AMERICA
5
Ex. Hotel/Prop.
98-Unit Multi-
Family Dwelling
Prop.
Dog Run
Prop.
Pickleball
Courts
Ext. Pool/BBQ
Area
Prop.
Storage
INNS OF AMERICA
6
Residential Uses in the P-M Zone
REQUIREMENT COMPLIES
Conditional Use Permit
Planned Development Permit
Integral part of an industrial park or large industrial
use
Compatible with industrial use
Efficient vehicular, bicycle or pedestrian
transportation
40 du/ac max density
INNS OF AMERICA
7
Ca
n
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Government Code §65915:
Allows a developer to increase density (total # homes)
allowed per zoning
Allows reductions in development standards (e.g. height
limits, setbacks, etc.) when standards prevent achieving
density allowed per state law
Specifies a certain number of the new dwelling units must
be reserved as affordable housing
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STATE DENSITY BONUS LAW
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Unit Type Unit Size
Range
Market Rate
Quantity
Affordable
Quantity Total
Studio 357 SF to 468 SF 62 11 73
One-Bedroom 568 SF to 742 SF 21 4 25
83 15 98 Total Units
Proposed
Very Low Low Moderate Total
7 5 3 15 affordable units
Base Density
Affordable Units by Income Level
Unit Types and Affordability
Density Bonus
Inclusionary Housing
3.12 ac x 40 du/ac = 125 du
5% of base density =
7 very low-income units
15% of proposed units =
15 affordable units required
20% of base density = 25 du
base density + 25 du =
150 units max.
Waiver 1
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•Waiver of CMC Inclusionary Housing Standard 21.85.030(C) requiring
developments which provide 10 or more units affordable to lower-income
households to provide at least 10% of the lower-income units as three or more
bedrooms.
STATE DENSITY
BONUS LAW
Waiver 2
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•Waiver of CMC Residential Planned Development Standard 21.45.060 (Table C)
(C.2) requiring dwelling units adjacent to any arterial road shown on the
Circulation Element of the General Plan to observe a fully landscaped setback
of 40 feet from prime arterial roads (40 feet setback from Cannon Road
required – 0 feet proposed for active community recreational space).
STATE DENSITY
BONUS LAW
6’ fence
Waiver 3
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•Waiver of CMC Planned Development Standard 21.45.060 (Table
C) (C.9) requiring community recreation space of 200 square feet
per unit (19,600 square feet required – 15,518 square feet
proposed).
STATE DENSITY
BONUS LAW
Waiver 4
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•Waiver of CMC Planned Industrial Zone Development Standard 21.34.070(A)
requiring a maximum building height of 35 feet with architectural projections
permitted up to a maximum height of 45 feet (existing roof ridge 36.9 feet,
exiting north tower 45.6 feet, exiting south tower 45.5 feet)
STATE DENSITY
BONUS LAW
45.6’43.3’
36.9’45.5’
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Government Regulations §15300
Development types exempt from detailed env. review
Includes projects ≤ 5 acres in urbanized areas §15332
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STATE CALIFORNIA
ENVIRONMENTAL QUALITY ACT
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Public Notice & Stakeholder Outreach
•Early public notice
•Information packet with survey
•6 comments in support
•1 comment in opposition
Project Consistency
General Plan (PI)
Zoning Ordinance (P-M)
Planned Development Ordinance
Mello II Segment of the LCP
Inclusionary Housing Ordinance
State Density Bonus Law/Density Bonus
Ordinance
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Recommended Action
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Adopt the resolution, exhibit 1, recommending approval
of:
•The CEQA determination
•The coastal development permit amendment,
conditional use permit and planned development
permit as described in the staff report.
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Community Development Department
Lauren Yzaguirre, Senior Planner
August 20, 2025
AMEND 2024-0008/CUP 2024-0009/ PUD 2024-0009
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2020
West Elevation
East Elevation
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Residential unit projects consisting of two or more units (including
a single-family residence and Accessory Dwelling Unit);
Mixed-use development consisting of residential and
nonresidential uses with at least two-thirds of the square footage
of the project designated for residential use;
Transitional Housing or Supportive Housing project (see
definitions of each term in Gov. Code & CMC
HOUSING CRISIS ACT – HOUSING
PROJECT
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Gov. Code § 65915(e)(1)
To deny a waiver or reduction, the city would have to make any of the following findings in writing based upon
substantial evidence:
•The standard(s) requested to be waived or reduced will not have the effect of physically precluding the construction
of a housing development at the densities or with the incentives or concessions permitted by this chapter.
•The requested waiver or reduction of development standards would have a specific adverse impact (a significant,
quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety
standards, policies, or conditions as they existed on the date the application was deemed complete) upon public
health and safety or on any real property that is listed in the California Register of Historical Resources, and for
which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact.
•The waiver or reduction of development standards would be contrary to state or federal law.
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Adds to the Housing Accountability Act that failing to
determine a project is exempt from the California
Environmental Quality Act is considered Disapproval of the
Housing Development Project if:
The project does not have environmental constraints
Is within an urbanized area
Is within one-half mile of transit GC 65589.5 (h)(6)(D)]
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AB 1633 (2023)
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Government Code §65589.5
Cities shall not disapprove a housing development project or
impose a condition requiring lower density unless the city
finds based on a preponderance of evidence that the project
would have a specific, adverse impact on public health or
safety, and there is no feasible method to satisfactorily
mitigate or avoid such adverse impact
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HOUSING ACCOUNTABILITY ACT
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Government Code §65589.5
Only objective design standards can be applied to eligible
housing development projects. Development standards that
are subject to interpretation and subjective in nature cannot
be applied to the project
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HOUSING ACCOUNTABILITY ACT
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Government Code §66300
Establishes pre-application process
Sets limit of public hearings for a Housing Development
Project to five
Establishes requirements that a city cannot reduce density
or add development restrictions
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STATE HOUSING CRISIS ACT
Project Features
Site Improvements
2 pickleball courts
1,070 square foot dog run area
288 square foot bike/surfboard storage
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(P) Pickleball
Courts
(P) Storage
(P) Dog Run
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City of Carlsbad Income Limits 2025
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Residential Uses in the P-M Zone
Residential Uses in the P-M Zone. One-family dwellings, two-family dwellings and
multiple-family dwellings or a combination thereof, which serve to house the
employees of businesses located in the P-M zone, may be conditionally permitted
subject to the following findings:
a)A planned development permit for the project has been approved, or is approved
concurrently with the conditional use permit, by the City Council.
b)The residential development is an integral part of an industrial park or large
industrial use.
c)The residential development is designed to be compatible with the industrial use
it serves by means of landscaping, open space separations, etc.
d)The industrial development served by the residential development shall provide
for convenient and efficient vehicular, bicycle or pedestrian transportation to and
from the residential development.
e)The maximum allowable density for the residential development shall be
established by the City Council but in no event shall the density exceed 40
dwelling units per acre.
Residential Uses in the P-M Zone
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15. The residential development is an integral part of an industrial park or large industrial use in that the project
is located at the southeast corner of Avenida Encinas and Cannon Road, within a larger industrial area that
supports a variety of uses consistent with the Planned Industrial (P-M) Zone. Originally developed to serve the
short-term accommodation needs of visitors, including employees of adjacent businesses, the existing hotel is
well integrated into the industrial park. Its conversion to residential use will maintain compatibility with the
surrounding area and support the continued vitality of the surrounding industrial uses. More than 25 locally-
serving businesses are located within 5,900 feet of the project site along Avenida Encinas. These businesses
provide a diverse range of goods and services, including insurance and real estate offices, medical and dental
practices, professional consulting, marketing and design firms, accounting and tax services, employment
agencies, mortgage providers, and home health services. A credit union is located within 2.7 miles, and 15
restaurants are situated within a one-mile radius. Altogether, these commercial and light-industry support jobs
for a range of occupations and people of different backgrounds. The project will contribute 98 new dwelling
units to the area, including 15 affordable units across various income categories. Ultimately, bringing
residential use to the site means bringing homes and jobs together, where people can live and work alongside
each other in a commercial and light-industrial neighborhood.
Residential Uses in the P-M Zone
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16. The residential development is designed to be compatible with the
industrial use it serves by means of landscaping, open space separations, etc.
in that the project includes 27,533 square feet of landscaping, consistent with
the requirements of the Carlsbad Landscape Manual, to provide visual relief
for future residents, buffer adjacent commercial, office, and light industrial
uses, and enhance views of the existing industrial park. Amenities include an
enclosed swimming pool, two pickleball courts (4,290 square feet) enclosed
by 6-foot-tall fencing, a 989-square-foot dog run enclosed by 4-foot-tall
fencing, and a 308-square-foot bike and surfboard storage area located on the
north side of the main building to further buffer surrounding uses. Existing
mature perimeter landscaping is located along the eastern, southern, and
western property lines, and the building is set back 49 feet from Avenida
Encinas. The existing structure, which will remain, features a contemporary
southwestern architectural style, with mission-style barrel tile roofing, light
tan stucco, and tan eaves and rafter tails. Architectural towers, accent
banding, and metal railings on the second- and third-story windows provide
additional visual interest. As such, the design is intended to be compatible
with the surrounding business park.
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Residential Uses in the P-M Zone
Prior to the issuance of a certificate of occupancy, the Developer shall submit to the
City Planner a detailed marketing program to ensure integration of the project with
surrounding development. The marketing program shall include, at a minimum:
(1)installation of on-site signage such as a kiosk providing project information to
potential tenants;
(2)distribution of informational flyers to all businesses located on Avenida Encina
between Cannon Road and Palomar Airport Road; and
(3)a dedicated webpage on the project’s website offering personalized assistance, a
digital brochure with floor plans and amenity details, and information on nearby
multimodal improvements and transit options tailored to employees of adjacent
business park uses.
The marketing program shall be subject to the review and approval of the City
Planner.
Residential Uses in the P-M Zone
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17. The industrial development served by the residential development shall
provide for convenient and efficient vehicular, bicycle or pedestrian
transportation to and from the residential development in that the project site
is located near Interstate 5 and is served by two arterial roadways, Cannon
Road and Palomar Airport Road, as well as Avenida Encinas, a designated
Neighborhood Connector Street. The site is also located within two miles of
the Poinsettia Train Station, offering regional transit connectivity. According
to the General Plan, Avenida Encinas is intended to accommodate all modes
of transportation while enhancing mobility for pedestrians and bicyclists. As
part of the Coastal Rail Trail, this corridor includes buffered Class II bike lanes
delineated by pavement striping and signage, non-contiguous sidewalks, and
adjacent landscaping, facilitating safe and convenient bicycle and pedestrian
access between the project site, commercial services, and employment
centers. To support bicycle transportation, the project will include a 308
square foot secure bicycle storage and maintenance shed. The facility will
provide 24 long-term bicycle parking spaces, electric bicycle charging outlets,
and a bicycle maintenance station. The shed will be conveniently located in a
secure area on the northwest portion of the site.
Residential Uses in the P-M Zone
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16. The residential development is designed to be compatible with the
industrial use it serves by means of landscaping, open space separations, etc.
in that the project includes 27,533 square feet of landscaping, consistent with
the requirements of the Carlsbad Landscape Manual, to provide visual relief
for future residents, buffer adjacent commercial, office, and light industrial
uses, and enhance views of the existing industrial park. Amenities include an
enclosed swimming pool, two pickleball courts (4,290 square feet) enclosed
by 6-foot-tall fencing, a 989-square-foot dog run enclosed by 4-foot-tall
fencing, and a 308-square-foot bike and surfboard storage area located on the
north side of the main building to further buffer surrounding uses. Existing
mature perimeter landscaping is located along the eastern, southern, and
western property lines, and the building is set back 49 feet from Avenida
Encinas. The existing structure, which will remain, features a contemporary
southwestern architectural style, with mission-style barrel tile roofing, light
tan stucco, and tan eaves and rafter tails. Architectural towers, accent
banding, and metal railings on the second- and third-story windows provide
additional visual interest. As such, the design is intended to be compatible
with the surrounding business park.