MEETING DATE:
FEBRUARY 2, 2026
SUBJECT:
Title
DAVIA VILLAGE-MARC SPECIFIC PLAN AMENDMENT - SPECIFIC PLAN AMENDMENT AND CONDITIONAL USE PERMIT TO ALLOW THE TEMPORARY CONVERSION OF 15,000 SQUARE FEET OF GROUND FLOOR COMMERCIAL AREA INTO UP TO 10 RESIDENTIAL APARTMENTS IN AN EXISTING MIXED-USE BUILDING IN THE DAVIA VILLAGE-MARC SPECIFIC PLAN AREA.
LOCATION/APN:
1045 ARMORLITE DRIVE / APN: 219-163-62-00, 219-163-63-00 and 219-163-64-00
CASE NUMBER:
SPECIFIC PLAN AMENDMENT (SPA24-0002) AND CONDITIONAL USE PERMIT (CUP24-0001)
Body
Recommendation
Recommendation
Recommend to the City Council APPROVAL of the following in the order set forth below:
1. APPROVE Resolution PC 25-5183 (Specific Plan Amendment SP24-0002) recommending to the City Council approval of an amendment of the Davia Village-MARC Specific Plan;
2. APPROVE Resolution PC 25-5186 (Conditional Use Permit CUP24-0001) recommending to the City Council approval of a CUP to allow the conversion of commercial space for ten (10) residential apartment units on the ground floor of an existing mixed-use building;
3. ADOPT an Addendum to the previously adopted Mitigated Negative Declaration (ND 13-003) in compliance with the California Environmental Quality Act (CEQA)
Body
Introduction
The 11.79-acre project site is currently developed with a mixed-use development consisting of 416 residential units, 15,229 square feet of retail space, a 1.157-acre public neighborhood park, and associated parking and landscaping. The proposed project would amend the Davia Village-MARC Specific Plan to allow the temporary conversion of 15,000 square feet of existing ground floor commercial tenant space into 10 new residential units. The proposed project includes a CUP to allow the conversion for a period of ten (10) years.
Discussion
The Davia Village-MARC Specific Plan is an existing mixed-use development consisting of 416 residential dwelling units and 15,229 square feet of retail space. The proposed project is limited to the ground-floor commercial tenant space of Building 6, which is located on the northwest corner of the site and fronts Armorlite Drive and Innovation Park. Adjacent uses to the east and south consist of industrial buildings within the Light Industrial (L-I) Zone. To the west of the project site is a mixed-use development located within the Specific Plan Area (SPA) Zone. To the north is a mixed-use building within the Palomar Station SPA Zone, as well as industrial buildings in the Industrial (I) Zone and the L-I/MU-1 Transitional Zone. Site access is provided via Armorlite Drive and Bingham Drive. The project site is located an approximate .12 mile radius from the Palomar College Sprinter Station.
On January 14, 2014, the City Council approved Multifamily Site Development Plan (Resolution 2014-7872) in conjunction with a General Plan Amendment (Resolution 2014-7871), Specific Plan (Ordinance 2014-1387), Rezone (Ordinance 2014-1386) and Site Development Plan (Resolution 2014-7873) for the mixed-use development. Construction of the project site began in 2015 and was completed in 2017. On March 19, 2018, the City Council approved an addendum to the previously adopted mitigated negative declaration and modification of a multifamily site development plan (Resolution 2019-8610) to remove conditions imposing a fee triggered by certain resident occupancy levels within the Davia Village-MARC Specific Plan.
The applicant provided a Retail Conversion Land Use Market Analysis (Attachment G) demonstrating that the existing ground floor retail space has remained vacant since construction was completed due to structural market constraints, including insufficient surrounding residential density, limited customer parking, and a lack of sustained tenant interest. Despite efforts to secure commercial tenants, the property owner has received, on average, only one letter of intent per year. Similar mixed-use developments in the vicinity, have experienced comparable challenges and have also converted retail space to residential uses due to the same market conditions. The proposed temporary conversion of vacant retail space to residential units responds to demonstrated housing demand, activates vacant storefronts, and contributes additional workforce housing in a transit-oriented location.
The applicant proposes converting approximately 15,000 square feet of existing ground-floor commercial tenant space into 10 residential units. The conversion would not expand the building footprint, increase building height, or significantly alter the architecture of the building. The amendment does not eliminate all ground-floor commercial uses. Approximately 3,225 square feet of commercial space would remain in use as the on-site leasing office. The proposed conversion to residential use responds to current housing demands in transit-oriented areas, while maintaining the ability to revert to retail, should market conditions change over the term of the CUP.
As discussed further below, the proposed project has been evaluated for environmental impacts through an Addendum (Attachment D) to the previously adopted Mitigated Negative Declaration for the Davia Village-MARC Specific Plan and would not result in any new or more severe significant environmental impacts. The project requires approval of a Specific Plan Amendment and CUP to allow the proposed residential use in lieu of the previously approved commercial use.
Specific Plan Amendment
The proposed Specific Plan Amendment modifies the allowed land uses table of the Davia Village-MARC Specific Plan to allow for the temporary conversion of existing ground-floor commercial space to residential units with a CUP. A comprehensive list of changes are identified in the redline and strikeout version of the Davia Village-MARC Specific Plan included as Attachment F.
The Density Section on page 40 has been updated to from 35.8 du/ac to 36.1 du/ac, reflecting the project density with the proposed addition of 10 units. This density remains consistent with the allowed density range of 30 to 45 du/ac under the existing Davia Village-MARC Specific Plan.
The Retail and Commercial Space Section on pages 42 and 43 has been modified to include language detailing the ability for retail spaces to be converted for residential use with the approval of a CUP, and preparation of a market analysis to support economic conditions leading to the conversion. Parking is also accounted for in this section to verify existing retail parking spaces shall be reallocated for each converted residential unit, and no additional parking will be required, as commercial parking supply exceeds residential parking requirements.
The allowed Commercial Mixed-Uses table on page 44 has been modified to add residential uses on the ground floor, with a maximum of 10 units subject to the approval of a CUP.
Together, the proposed amendments clarify development standards and approval requirements for the conversion of ground floor commercial space to residential use within the Davia Village-MARC Specific Plan.
Conditional Use Permit (CUP)
Under a CUP, the project design is reviewed for compliance with the design guidelines and development standards established in the Davia Village-MARC Specific Plan and other applicable regulatory provisions. The CUP also establishes an initial term of 10-years. At the conclusion of the CUP term, the applicant may request renewal of the permit, which would be subject to review and approval at that time. This ensures that the City retains discretionary control over the continued residential use of the space and the ability to evaluate the conversion in consideration of future land use needs or market conditions.
Condition of Approval F of Resolution PC 25-5186 requires residential lease agreements for the proposed 10 units to end with the term of the CUP and to not extend beyond the permit term. Condition H additionally requires that all tenants be provided with written notice disclosing that their lease is subject to termination, or renewal, based on the validity of the CUP.
Architecture and Floor Plans
The proposed project involves interior tenant improvements only and does not include modifications to the building footprint, height, or exterior architectural character. The overall building design would remain consistent with the approved Davia Village-MARC architecture and development standards of the Specific Plan. In addition to interior tenant improvements, minor exterior modifications to provide each unit with a private patio area, are proposed along the building façade facing Armorlite Drive to accommodate the new ground-floor residential units. The patios would be enclosed with 48-inch-high fencing and landscaped planters, providing individual private outdoor space for residents while maintaining a consistent and orderly streetscape.
Open Space and Landscaping
No changes to the approved open space are proposed as part of the conversion project. Residents of the new ground-floor units would have access to the existing common open space amenities within the Specific Plan. Minor landscape modifications are proposed in front of Unit 1, as shown in the approved project plans (Attachment E), to provide a private patio and a pedestrian walkway connecting to the existing sidewalk. All existing landscaped areas would continue to be maintained by the property owner or homeowners’ association, as applicable.
Parking and Circulation
The project would utilize existing on-site parking facilities approved under the Davia Village-MARC Specific Plan. Pedestrian access to the ground-floor units would be provided via existing walkways and building entrances, with no changes to vehicle, bicycle, or pedestrian circulation patterns. The project would continue to utilize the existing on-site parking supply approved under the Davia Village-MARC Specific Plan. Parking spaces that were previously allocated to serve the ground-floor commercial suites would be reassigned and reserved to serve the ten (10) new residential units. Commercial uses typically require a higher parking ratio than residential uses. As a result, the existing parking supply exceeds the parking demand associated with the proposed residential conversion and sufficient parking is available to accommodate the residential use. As a result, the excess parking spaces would remain available to serve guest parking and shared parking demands on the site.
Commercial vs. Residential Conversion Parking Requirements
|
Land Use |
Quantity |
Parking Ratio |
Required Spaces |
|
Existing Commercial |
15,229 SF |
3 spaces / 1,000 SF |
46 spaces |
|
Proposed Residential |
8 one-bedroom units |
1.25 spaces per unit |
10 spaces |
|
|
2 two-bedroom units |
1.75 spaces per unit |
4 spaces |
|
|
|
|
|
|
|
|
Resulting parking reduction |
31 spaces |
An approved Parking Management Plan exists for the site which provides general parking rules on resident parking, guest parking and parking enforcement by the property manager. No changes to the approved parking layout or circulation pattern are proposed. The site currently provides existing electric vehicle (EV) charging spaces in compliance with the Davia Village-MARC Specific Plan, and because the overall number of parking spaces on site is not increasing and is only being reallocated from commercial to residential use, no additional EV parking spaces are required.
Environmental Review
The initial approval of the Davia Village-MARC Specific Plan Area included the adoption of a Mitigated Negative Declaration (ND 13-003, SCH 2013061059), which evaluated the development of the site with a mix of residential and commercial uses. An addendum (Attachment D) to the previously adopted MND has been prepared in accordance with CEQA Guidelines Sections 15162 and 15164 to evaluate whether the proposed changes would result in new or more severe environmental impacts than those previously analyzed. The addendum concludes that the proposed project would not result in any new significant environmental impacts, would not substantially increase the severity of previously identified impacts, and would not require new or revised mitigation measures. The proposed conversion remains within the scope of development evaluated in the original MND and 2019 addendum related to MFSDP17-0003.
Pursuant to CEQA Guidelines Section 15164, preparation of an Addendum does not require public circulation and may be adopted by the decision-making body concurrently with approval of the project. Adoption of the Addendum is appropriate for the proposed project.
Public Comment
During project review, staff did not receive any comments from the public. The City mailed a Notice of Application to 834 property owners and occupants. Additionally, a Notice of Public Hearing was sent to 937 recipients, including property owners, occupants, regional agencies, and tribal reservations.
Attachment(s)
Resolutions:
1. Resolution PC 25-5183 (Specific Plan Amendment SP24-0002): Recommend to the City Council approval of an amendment of the Davia Village-MARC Specific Plan;
2. Resolution PC 25-5186 (Conditional Use Permit CUP24-0001): Recommend to the City Council approval of a CUP to allow the conversion of commercial space for ten (10) residential apartment units on the ground floor of an existing mixed-use building;
A. Vicinity Map
B. Requested Entitlements
C. Site & Project Characteristics
D. Addendum to Mitigated Negative Declaration
E. Project Plans
F. Davia Village-MARC Specific Plan Redline Copy
G. Retail Conversion Land Use Market Analysis
Prepared by: Corina Flores, Associate Planner
Reviewed by: Sean del Solar, Principal Planner
Kyrenne Chua, Principal Civil Engineer
Submitted by: Joe Farace, Planning Division Director