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File #: TMP-2416    Version: 1 Name:
Type: Resolution Status: Agenda Ready
File created: 3/12/2026 In control: Planning Commission
On agenda: 4/20/2026 Final action:
Title: SANTA FE FLORES TOWNHOMES - A REQUEST FOR ENTITLEMENTS TO CONSTRUCT A MULTIFAMILY RESIDENTIAL DEVELOPMENT CONSISTING OF UP TO 46 RESIDENTIAL CONDOMINIUM UNITS. LOCATION/APN: 2972 AND 2982 SOUTH SANTA FE AVENUE (APNS: 217-161-18-00 AND 217-161-19-00) AND A 0.37-ACRE PORTION OF 2966 SOUTH SANTA FE AVENUE (APN: 217-161-17-00). CASE NUMBER: GENERAL PLAN AMENDMENT (GPA25-0001), REZONE (R25-0001), MULTIFAMILY SITE DEVELOPMENT PLAN (MFSDP25-0001), AND TENTATIVE SUBDIVISION MAP (TSM25-0001).
Attachments: 1. Resolution No. PC 26-5188 (GPA25-0001), 2. Resolution No. PC 26-5189 (R25-0001), 3. Resolution No. PC 25-5190 (MFSDP25-0001), 4. Resolution No. PC 26-5191 (TSM25-0001), 5. Attachment A -C - Map, Entitlements, & Characteristics, 6. Attachment D - Addendum No. 1 to Mitigated Negative Declaration (ND22-008), 7. > D.1a Final Initial Study/Mitigated Negative Declaration for the Santa Fe Flores, LP Project (ND22-008), 8. > D.1b Appendices to the Final Initial Study/Mitigated Negative Declaration for the Santa Fe Flores, LP Project (ND22-008), 9. > D.2 Air Quality Analysis, 10. > D.3 Local Transportation Analysis, 11. > D.4 Biological Resources Letter Report, 12. > D.5 Cultural Resources Survey, 13. > D.6 Geotechnical Report, 14. > D.7 Climate Action Plan Consistency Checklist, 15. > D.8 Preliminary Hydrology Study, 16. > D.9 Stormwater Quality Management Plan, 17. > D.10 Noise Analysis, 18. > D.11 Vehicle Miles Traveled Assessment, 19. > D.12 Buena Sanitation District Letter, July 17, 2025, 20. > D.13 Buena Sanitation District Letter, September 3, 2025, 21. Attachment E.1 - Project Plans - Civil Plans, 22. Attachment E.2 - Project Plans - Architectural Plans, 23. Attachment E.3 - Project Plans - Landscape Plans, 24. Attachment F - Land Use Analysis, 25. Attachment G - Fiscal and Economic Impact Analysis

PLANNING COMMISSION MEETING DATE:                     

APRIL 20, 2026

 

SUBJECT:                                            
Title

SANTA FE FLORES TOWNHOMES - A REQUEST FOR ENTITLEMENTS TO CONSTRUCT A MULTIFAMILY RESIDENTIAL DEVELOPMENT CONSISTING OF UP TO 46 RESIDENTIAL CONDOMINIUM UNITS.

 

LOCATION/APN: 

2972 AND 2982 SOUTH SANTA FE AVENUE (APNS: 217-161-18-00 AND 217-161-19-00) AND A 0.37-ACRE PORTION OF 2966 SOUTH SANTA FE AVENUE (APN: 217-161-17-00).

 

CASE NUMBER: 

GENERAL PLAN AMENDMENT (GPA25-0001), REZONE (R25-0001), MULTIFAMILY SITE DEVELOPMENT PLAN (MFSDP25-0001), AND TENTATIVE SUBDIVISION MAP (TSM25-0001).

 

Body

Recommendation

 

Recommend to the City Council ADOPTION and APPROVAL of the following in the order set forth below:

 

1.                     ADOPT an Addendum to the previously adopted Mitigated Negative Declaration (ND22-008);

2.                     APPROVE RESOLUTION PC 26-5188 (General Plan Amendment GPA25-0001) for a land use change of 2.23-net acres from “Medium Density Residential 2” and 0.37-net acres from “Commercial” to “Medium High Density Residential”;    

3.                     APPROVE RESOLUTION PC 26-5189 (Rezone R25-0001) for a zone reclassification of 2.23-net acres from Multifamily Residential 3 (R-3-10) and 0.37-net acres from Commercial (C) to Multifamily Residential (R-3-6);

4.                     APPROVE RESOLUTION PC 26-5190 (Multi-Family Site Development Plan MFSDP25-0001) to allow the construction of the proposed 46-unit residential condominium development; and

5.                     APPROVE RESOLUTION PC 26-5191 (Tentative Subdivision Map TSM25-0001) for the merger of two existing parcels into one and the creation of up to 46 residential condominium units.

 

Body

 

Introduction

The applicant is requesting approval of a multi-family residential development consisting of 46 condominium units on a 2.6-acre vacant site, at 17.69 du/ac density, located on the northwest corner of South Santa Fe Avenue and North Las Flores Drive.  The project proposal includes seven three-story buildings, consisting of 46 three-bedroom units, each with an attached two-car garage and private open space, with common open space and recreational amenities.

 

Discussion

Previously Approved Project

 

On February 28, 2023, the City Council approved entitlements for the previous Santa Fe Flores, LP project upon the then 2.23-acre project site located at 2972 and 2982 South Santa Fe Avenue, allowing development of a 50-unit multi-family apartment building. The project included a General Plan Amendment and Rezone to change the existing Light Industrial and Commercial designations to a Medium Density Residential 2 (MDR2) land use designation and Residential 3 (R-3-10) zoning, respectively.

 

The approved project featured a stepped building design to respond to site topography and minimize the need for extensive retaining walls. It also included five affordable units pursuant to State Density Bonus Law (Government Code Section 65915) to allow for a concession to exceed the R-3-10 zone’s then 45-foot height limit, permitting a maximum height of 63 feet at the building’s midpoint and 55 feet at the southerly end to accommodate elevator towers.

 

The City Council adopted Mitigated Negative Declaration ND22-008 and approved General Plan Amendment GPA21-0008 and Multi-Family Site Development Plan MFSDP21-0002 on February 28, 2023. The associated Rezone (R21-0004) was subsequently approved following second reading on March 14, 2023.

 

Proposed Project

 

The 2.6-acre modified project site under consideration is vacant and does not contain any significant vegetation nor sensitive habitat.  The existing commercial structure, parking lot, and associated improvements southwest of the project site will remain and will share driveway access with the proposed development.  The project site slopes upward from S. Santa Fe Avenue and has been previously rough graded.  The surrounding properties include industrial and commercial buildings to the north and west; a mobile home park to the south, across S. Santa Fe Avenue; and an apartment complex to the east across N. Las Flores Drive.  N. Las Flores Drive provides access over the Sprinter Rail Line to the Rancho Santalina single-family residential subdivision further to the north but will not provide access to the project.

 

The project applicant is requesting approval of a General Plan Amendment, Rezone, Multi-Family Site Development Plan, and a Tentative Subdivision Map. If approved, these entitlements would allow the development of the vacant project site with a multifamily residential project consisting of 46 residential condominium units.

 

General Plan Amendment (GPA) and Rezone (R)

 

The project site consists of two entirely vacant parcels totaling 2.23 acres (APNs 217-161-18-00 and 217-161-19-00) and the vacant 0.37-acre portion of the adjacent existing commercial property (APN: 217-161-17-00).  The two entirely vacant parcels currently have a General Plan land use designation of “Medium Density Residential 2” (MDR2) and Zoning designation of Multifamily Residential 3 (R-3-10). The vacant 0.37-acre portion of the adjacent commercial property has current General Plan land use and Zoning designations of “Commercial”.  The project applicant is proposing amending the General Plan Land Use designation to “Medium High Density Residential” (MHDR) as well as rezoning to Multi-family Residential (R-3-6) to permit a for sale townhome project, compliant with the R-3-6 zone’s maximum density of 30 dwelling units per acre, developing a constrained urban infill site that will assist in providing the City for sale residential units.

 

To develop the site with the seven three-story townhome buildings on the subject property, the General Plan land use designation must be changed to MHDR through General Plan Amendment (GPA25-0001) and zoning must be changed to R-3-6 through a Rezone (R25-0001). A reclassification of the property to MDHR and R-3-6 would allow development of a quality, for-sale residential townhome project that would provide a transition between industrial to the northwest, the single-family residential neighborhood (Rancho Santalina) further to the north, a multifamily residential apartment complex to the east, commercial to the southwest, and a mixture of multi-family rental projects, a mobile home park, and an older neighborhood consisting of duplexes and single family homes to the south.

 

The proposed project would implement the overarching goals of the City’s General Plan through various proposed components, such as providing housing near transit and employment opportunities; contributes to the growing housing needs of the region; and supporting vehicular, bicycle, and pedestrian modes of travel.  Additional objectives of the project include creating high quality architectural and landscape design to provide a distinct built environment pleasing to residents and neighbors alike; using building materials that complement and enhance the surrounding environment and neighborhood; and providing recreational amenities and open space throughout the development.  The project complies with General Plan Goals and Policies, including:

 

San Marcos General Plan Land Use Goal LU-1:  The project helps achieve a balanced distribution and compatible mix of land uses to meet the future and present needs of all residents and the business community.

 

The proposed residential condominium project constitutes an appropriate transition from the industrial and commercial uses to the north and west, the single-family subdivision further north on N. Las Flores Drive, and the mixture of multi-family, single-family duplex, and mobile home park residential uses to the south and east.

 

San Marcos General Plan Land Use Goal LU-3:  Provides community connections through development of land uses compatible with and support a variety of mobility opportunities and choices through development of a walkable, bike friendly and transit-oriented community.

 

San Marcos General Plan Housing Element Policy 1.1:   Designate land for a variety of residential densities sufficient to meet the housing needs for a variety of household sizes and income levels, with higher densities being focused in the vicinity of transit stops in proximity to significant concentrations of employment opportunities.

 

The proposed project would provide high density housing opportunities within a one-mile radius of transit facilities. The location would increase the customer base to enhance the viability of alternative modes of transportation, such as the existing Sprinter light rail with transit stops located approximately one mile to the east at Palomar College, and the bus stop located along the property frontage on S. Santa Fe Avenue. The current project also implements the Active Transportation Plan (ATP) by providing an irrevocable offer of dedication of right-of-way on S. Santa Fe Avenue for future Class IV one-way separated bicycle and pedestrian facilities consistent with the ATP. In addition, the Inland Rail-Trail is located directly to the north of the project site with access via N. Las Flores Drive. Therefore, the proposed project’s land use would support a variety of mobility opportunities and promote multimodal transportation.

 

General Plan analyses were prepared by the project applicant to discuss the proposed General Plan Amendment and Rezone to change the land use designation and zone of the property from MDR2 and “Commercial” to MDHR in relation to Land Use Compatibility, Public Benefits, Infrastructure, and Community Services.  These analyses, in Attachment F, explain that under the current R-3-10 and Commercial (C) zoning, development of the subject property would not be feasible given the topography and access constraints of the site. A commercial development would require large retaining walls to create graded pads large enough to accommodate a viable-sized building(s) with its associated parking, circulation, and loading areas similar to the recently built industrial buildings to the north.  In addition, the ability to provide secondary access to the development from N. Las Flores Drive is not possible due to the difference in grade, and these infill properties cannot offer greater than 50 units without providing secondary emergency access. The proposed multi-building 46-unit townhome condominium project will more appropriately integrate development into the site’s existing topography, creating upper and lower pads that will provide extensive landscape screening of the retaining walls required between pads and the along the central drive aisle. Analysis of the proposed 46-unit townhome development found the proposed project would have similar impacts to the R-3-10 development and minimal impacts compared to the commercial development that would both be permitted by right.  In addition, the for-sale residential condominium development would be suitable and compatible for the subject property and the surrounding area.

 

Multi-Family Site Development Plan (MFSDP)

 

Under the Multifamily Site Development Plan (MFSDP), the project's design is evaluated for compliance with the development standards of the Zoning Ordinance (San Marcos Municipal Code Title 20) and other regulatory provisions. The MFSDP addresses the design of the seven buildings, associated common open space and residential amenities, and the floor plans and elevations within the project site. Furthermore, the proposed project includes a right-of-way dedication of eight feet along the southern project boundary which will allow for future Class IV one-way separated bicycle and pedestrian facilities improvements, consistent with the ATP, along S. Santa Fe Avenue. Site and architectural plans for the proposed project are included in Attachment E. The Plan also establishes conditions of approval for the project, including but not limited to architectural design, landscaping, grading, drainage, and it incorporates mitigation measures from the environmental document.

 

Architecture/Floor Plans

 

The buildings consist of a contemporary architectural style.  Features for each building include “Pro-Ledge Huron” or “Texas Rubble/Texas Cream” stone wainscotting on the ground floor, wall projections, varied roofline with parapets, and enhanced finishes such as textured/colored walls, metal awnings, metal deckrails, and other enhancements.  There will be two complementary color schemes offered to provide additional variation in the project.  In addition, the project will include solar panels in accordance with Title 24 requirements.

 

As shown in Attachment E, the project proposes seven buildings of either six or eight single-family attached townhome units that are approximately 35 feet tall.  Each unit will feature an attached two-car garage and two stories of living space above. The project will offer two different three-bedroom floorplans, ranging in size from 1,464 square feet for interior units to 1,700 square feet for corner units.  Access to all units will be provided from the building’s exterior and directly from their attached garages. Additionally, the project will include five ADA accessible units.  These accessible units will provide a powder room on the ground floor as required by the California Building Code.

 

Table 1 - Residential 3 (R-3-6) Development Standards:

Development Standard

Zone

Proposed Project

Residential Density

30 du/ac Maximum

17.69 du/ac

Building Height

3 stories / 45 feet Maximum

3 stories / 35 feet, 4 inches

Primary Street  (Project Frontage Setback)

15 feet

43 feet +

Project Exterior Boundary  (other than Primary Street - Project Frontage Setback)

10 feet

 11.91 feet +

Parking (Any Property Line)

8 feet

8 feet +

 

Grading/Utilities

 

Grading for the project will involve approximately 23,300 cubic yards (CY) of cut and 3,200 CY of fill, resulting in a net export of approximately 20,100 CY of material. The project site contains approximately 48 feet of elevation change, ranging from a low point of 495 feet Above Mean Sea Level (AMSL) along N. Santa Fe Avenue to a high point of 543 feet AMSL at the northern rear of the site. To accommodate the proposed development, grading will establish three lower building pads at approximately 500 feet AMSL, as well as a central access road of approximately 18% grade that ascends to upper building pads at approximately 526, 531, 535, and 536 feet AMSL. Due to the site’s topography, retaining walls are required throughout the development.

 

The tallest retaining wall is located along the east side of the main drive aisle, which provides access to the upper buildings and additional guest parking on the north side of the site. A single segment of retaining walls will reach a maximum height of approximately 17 feet. However, due to their location on the site and the incorporation of substantial landscaping, these walls are not expected to be visible from the public street at landscape maturity. Most retaining walls along the project perimeter and within interior pad areas will be constructed of tan slump block, while a geogrid retaining wall is proposed between select pads. Landscaping is proposed in front of the retaining walls to reduce their visual prominence from exterior viewpoints and to soften their appearance for future residents.

 

A storm water detention system will be located underground beneath the open space amenity at the corner of S. Santa Fe Avenue and N. Las Flores Drive.  Biofiltration systems will be located adjacent to buildings 3 and 5 upon the upper pad, and adjacent to buildings 1 and 7 upon the lower pad.  Private storm drains will connect to the existing public drainage system in S. Santa Fe Avenue. Water and sewer service for the proposed project will be provided by the Vista Irrigation District and Buena Sanitation District, respectively. The project proposes to connect to the existing water and sewer mains in S. Santa Fe Avenue.

 

Open Space/Landscaping

 

Each unit will exceed the minimum 50 square-foot private open space required by the Multi-Family Residential Design Guidelines (SMMC Section 20.215.060). The development provides an approximately 61 or 64 square foot private second-story deck and an approximately 340 or 450 square-foot roof deck. In addition to private open space, the project includes common recreational amenities throughout the development. The project includes common recreational amenities of artificial turf open play areas, artificial turf game courts with concrete game boards, 400-square foot tot lots each for older and younger children, landscaped paseos, and barbeque islands adjacent to shaded seating areas. The project will also provide gated pet relief areas adjacent to each building. Landscaping throughout the project will consist of a mixture of trees, shrubs, and ground cover to enhance the proposed buildings.  All landscaping will be required to comply with the City’s Landscape Water Efficiency Ordinance (SMMC Chapter 20.330). Street trees, planting materials, and landscape irrigation proposed within the City’s CFD maintained landscape area will meet Public Works design guidelines.

 

Table 2 - Residential 3 (R-3-6) Open Space Development Standards:

Open Space Development Standard

Zone

Proposed Project

Private Open Space

250 square feet

61/64 square foot 2nd story deck; 340/450 square foot roof deck

Common Open Space

Area equal to 30% of livable ground floor area of all units

38,759 square feet (34% of total project site)

 

 

The project will not be gated; however, a combination of perimeter fencing is proposed.  The project will include a six-foot tall split-face block wall, with evenly spaced pilasters and integrated landscaping, along the S. Santa Fe Avenue buffering the project from the street. Due to the project site’s topography, Building One’s frontage along the N. Las Flores Drive will have 42-inch black tubular steel fencing above retaining walls of varying heights, which will also be screened from public view by integrated landscaping. To create additional separation and provide privacy screening from the commercial structure that will remain at 2966 S. Santa Fe Avenue 42-inch tan vinyl fencing will be placed along the shared residential property line. Property line fencing will further separate the residential project from the existing industrial zoned uses to the north and west with a 6-foot-tall tan vinyl fence, with landscape screening further softening the fence’s appearance.

 

The proposed residential condominium project will provide a stepped pad design to incorporate the seven buildings into the site’s topography. Due to a 25-to-35-foot grade difference between the upper and lower pads, retaining walls of varying heights (up to 17-feet) will be needed in locations adjacent to the grade change along the drive aisle and at those areas abutting the base of slope. The development will incorporate 38,739 square feet of landscaped area, a portion of which will screen the required retaining walls along the project’s drive aisle and between upper and lower pads.

 

Parking and Circulation

 

The Parking Ordinance (SMMC Ch. 20.340) requires a parking ratio of two spaces per unit and one additional guest parking space for every three units.  Using these parking ratios, the proposed project requires a total of 107 parking spaces. The project will provide 92 parking spaces through two-car garages for each unit and includes 15 guest spaces distributed throughout the site, to meet this 107 parking space requirement. One of the guest parking spaces will be ADA accessible in accordance with the California Building Code, and 1 parking space is provided for the mail delivery vehicle near the mailbox.  The project will exceed building code requirements for residential Electrical Vehicle (EV) parking spaces by providing 46 EV Capable parking spaces, one in every garage. Currently only 10% of parking spaces must be EV capable (11 space) and 25% EV ready (27 spaces). Ten bicycle parking spaces will be provided through incorporation of five bike racks located across the development. The residences would be accessed by the driveway off of S. Santa Fe Avenue, which will be shared with the adjacent commercial building to the west. This driveway access is right-in and right-out only, with an existing left turn lane to allow for U-turns at Community Drive. The ability to provide secondary access to the development from N. Las Flores Drive is not possible due to the difference in grade.  The project design provides adequate circulation on site for emergency vehicles and delivery trucks. 

 

The project will provide sidewalk connections for pedestrians to the existing sidewalks on S. Santa Fe Avenue and N. Las Flores Drive, facilitating onsite circulation for all residents to the development’s common recreational amenities, mailboxes, and connections to the public streets.

 

Tentative Subdivision Map (TSM)

 

The tentative subdivision map will allow consolidation of the two vacant parcels.  A separate lot line adjustment will be completed to add the 0.37-acre portion of the commercial property to the project site.  The final map will then consolidate these two lots to allow for the creation of up to 46 residential condominium units. An 8-foot wide Irrevocable Offer of Dedication (IOD) for additional right-of-way is required to allow for the future construction of separated bicycle facility on S. Santa Fe Avenue.  Existing street improvements provide two westbound travel lanes, with an existing left turn lane to allow for U-turns at Community Drive. Existing 5-foot standard sidewalks exist on both S. Santa Fe Avenue and N. Las Flores Drive and will not be modified by the project.  

 

Environmental Review

In accordance with the California Environmental Quality Act (CEQA), an addendum to the Santa Fe Flores, LP Project adopted Mitigated Negative Declaration (MND) was prepared for the proposed project (ND22-008).  The addendum evaluated impacts to the environment that would occur due to the addition of 0.37-acre to the project area previously analyzed for Multi-family Residential 3 (R-3-10) development of 50 residential apartment units.

 

Under CEQA, an addendum to an adopted MND may be prepared if minor technical changes or additions to the proposed project are required or if none of the CEQA conditions calling for the preparation of a subsequent MND have occurred. An addendum is appropriate if the project changes or modifications do not result in any new significant impacts or a substantial increase in the severity of previously identified significant impacts. The addendum need not be circulated for public review; however, an addendum is to be considered along with the approved MND by the decision-making body prior to making a decision on the project.

 

The Addendum demonstrates that the environmental analysis, impacts, and mitigation requirements identified in the MND for the approved project adopted on February 28, 2023 (ND22-008), remain substantively unchanged by the modified project and supports the finding that the modified project does not raise any new issues and does not exceed the level of impacts identified in the adopted MND.

 

Biological Resources

 

An onsite biological resource survey for the modified project was conducted by RECON Biologists on October 31, 2024. The survey concluded that no sensitive habitats were present onsite. Although the site exhibits limited habitat suitability, certain existing onsite vegetation could potentially support bird/raptor nesting. Therefore, mitigation measures stipulate that construction must either occur outside the nesting season or, if ground clearing/construction activities are to take place during the nesting season, a nesting bird and raptor survey must be conducted beforehand.

 

Cultural/Tribal Cultural Resources

 

In accordance with State law (SB-18 and AB-52), tribal consultation for the project took place with four tribes: Pala Band of Mission Indians, Pechanga Band of Indians, Rincon Band of Luiseño Indians, and San Luis Rey Band of Mission Indians. While no resources were identified on the project site during the archaeological resources’ reconnaissance, it was determined that there could be potential for unidentified resources to be encountered subsurface during project grading. Consequently, mitigation measures mandate that, prior to any ground disturbance work, the applicant must enter into an agreement for tribal monitoring. 

 

Public Resources

 

On June 7, 1988, voters in San Marcos approved "Proposition R", which guarantees that sufficient public facilities and services are in place to accommodate the demands of new developments. To fulfill the mandates of Proposition R, the City established Community Facility Districts (CFDs) to gather property taxes linked to financing various facilities and services impacted by new development.  The upcoming project will have implications for citywide services. Therefore, annexation into CFDs 98-01IA1 (Police) and 2001-01 (Fire and Paramedic) is essential to mitigate those effects.

 

Transportation (Vehicles Miles Traveled Analysis)

 

Per the City’s Transportation Impact Analysis (TIA) guidelines, the Vehicle Miles Traveled (VMT) analysis screening threshold was evaluated for the residential project. The residential project is located in a VMT-efficient area and does not require a VMT analysis. The project is therefore considered to have a less than-significant transportation impact.

 

Level of Service Analysis (Land Use and Planning)

 

Since Senate Bill 743 went into effect, analysis of traffic congestion based on the level of service (LOS) metric is not part of the CEQA impact assessment. However, the City requires a separate LOS-based traffic analysis to demonstrate that the project would maintain mobility performance goals outlined in the City’s General Plan (Mobility Policy M-1.4). As such, the LOS-based traffic study was submitted to the City under separate cover for review (Attachment 3 of Addendum No. 1 to the MND (Attachment D to this Staff Report)).

 

The traffic study analyzed the project’s potential traffic impacts upon existing conditions. The proposed project is anticipated to generate 368 average daily trips (ADT), including 29 AM peak hour trips and 37 PM peak hour trips.

 

With the proposed project, each intersection and road segment analyzed in the study would continue to operate at its existing level of service. Seven road segments, eight intersections, and the project’s single driveway entry were analyzed in the traffic study. This project does not require substantial improvements for the analyzed road segments or intersections

 

The S. Santa Fe Avenue/Smilax Road intersection is operating below City standards in the existing condition scenario; therefore, a traffic signal is planned for this location under Capital Improvement Project (CIP) 88179 resulting in acceptable LOS D or better operations.  The CIP is anticipated to start construction in 2027.

 

The project will contribute toward citywide traffic, resulting in potential cumulative impacts.  In order to address potential cumulative impacts, the proposed project shall financially participate in the Congestion Management Community Facilities District (CFD 2011-01), which will assist in City-wide efforts to reduce traffic congestion and impacts to State Route 78. In addition, the project site is located within the South Santa Fe/Mission/Rancho Santa Fe Road Fee Reimbursement District and the project will contribute toward Capital Improvement Projects within the area.

 

Fiscal and Economic Impact

Fiscal and Economic Impact Reports were prepared for the project and have been provided as Attachment G, which compares the land use change from Multi-family Residential 3 (R-3-10) and Commercial (C) to Multi-family Residential (R-3-6).  For the purposes of the fiscal and economic reports, the analysis compared the proposed project (a proposal for the development of 46 residential townhome condominium units), to a project conforming to the existing residential and commercial designations of the project site (referred to as the “approved plan”).  The approved plan was assumed to consist of a 50-unit multi-family residential apartment complex plus an additional 2,821 square foot building added to the currently vacant portion of the Commercial Retail Strip Center.

 

The Fiscal Impact Report identifies potential recurring municipal revenues and costs to the City General Fund that may result from the proposed land use change from Multi-family Residential 3 (R-3-10) and Commercial (C) to Multi-family Residential (R-3-6) for the project site.  Revenue sources include property taxes, sales taxes, licenses, permits, and fines.  Expenditures for the City include public safety, public works maintenance, and administrative services.  The Fiscal Impact Report estimates that the proposed project would result in a recurring fiscal surplus of $38,003 to the City’s General Fund as compared to a recurring surplus of $9,472 if the site was developed with the Multi-family Residential apartment complex and Commercial Retail Strip Center approved uses as described above.

 

The Economic Impact Report identifies general economic impacts that may result from the proposed project.  Major indicators of economic impact are 1) Gross receipts (direct output plus output produced by suppliers and employee spending), 2) Employment (direct on-site and indirect which supports direct employment), and 3) One-Time Construction Impacts. According to the study, implementing the proposed project would result in a recurring economic output for the City of approximately $1,252,557. If developed under the approved plan in alignment with the current C/R-3-10 designations, the recurring economic output would be approximately $975,652.  An advantage of the proposed project over the approved project is that the site can provide a new for sale product to San Marcos in a time of extreme market demand and supply shortage of for-sale residential townhomes.

 

The project site has remained undeveloped under the current C/R-3-10 Zones.  The site is unlikely to be developed with commercial buildings due to the site’s topography and lack of adequate accessibility and multi-family residential apartment units due to currently trending economic conditions where there is a high-market demand for for-sale residential units.

 

Public Comment

A virtual Public Workshop was conducted on December 11, 2025, and was attended by one member of the public. No comments were received during the public workshop, or in response to any public notices circulated for the project.

 

 

Attachment(s)

 

Resolutions:

1.                     ADOPT Addendum to the Mitigated Negative Declaration (ND22-008)

2.                     RESOLUTION PC 26-5188 (General Plan Amendment GPA25-0001): Recommend to City Council approval of a land use change of 2.23-net acres from “Medium Density Residential 2”  and 0.37-net acres from “Commercial” to “Medium High Density Residential”;    

3.                     RESOLUTION PC 26-5189 (Rezone R25-0001): Recommend to City Council approval of a zone reclassification of 2.23-net acres from Multifamily Residential 3 (R-3-10)  and 0.37-net acres from Commercial (C) to Multifamily Residential (R-3-6) ;

4.                     RESOLUTION PC 26-5190 (Multi-Family Site Development Plan MFSDP25-0001): Recommend to City Council approval of a Multi-Family Site Development Plan to allow the construction of the proposed 46-unit residential condominium development; and

5.                     RESOLUTION PC 26-5191 (Tentative Subdivision Map TSM25-0001): Recommend to City Council approval of a Tentative Subdivision Map for creation of a condominium map for 46 residential condominium units.

 

A.                      Vicinity Map

B.                     Requested Entitlements

C.                      Site & Project Characteristics

D.                      Addendum No. 1 to Mitigated Negative Declaration (ND22-008)

E.                      Project Plans

F.                      Land Use Analysis

G.                      Fiscal and Economic Impact Analysis

 

 

Prepared by: Sarah Cluff, Senior Planner (Project Planner)

Reviewed by: Sean del Solar, Sustainability Program Manager / Principal Planner

Reviewed by: Kyrenne Chua, P.E, Principal Civil Engineer

Submitted by: Joseph Farace, Planning Division Director