On December 14, 2023, the Board of Directors of the San Diego Metropolitan Transit System authorized the Chief Executive Officer to modify the approved project scope and material terms of the ground lease for the Disposition and Development Agreement with National Community Renaissance of California for the affordable housing portions of the Palm City Village Transit Oriented Development Project (“Project”). The Board further authorized the CEO to amend the approved project scope and material terms of the ground lease for the Disposition and Development Agreement with Malick Infill Corp for the moderate-income housing portions of the Project.
On October 14, 2021, the Board had approved a design for the Project that included four buildings with a total of 390 homes/units, 80 exclusive MTS transit patron parking stalls, and 111 exclusive resident parking stalls. Although not required by the DDA, the developer also proposed that their ultimate design would include a childcare facility, outdoor marketplace/plaza, micro mobility stations (i.e. bicycle parking and lockers, scooter area), running loop, picnic area, and others amenities. These developer-proposed amenities were not binding commitments and can be changed as the design process unfolds. The October 2021 Board approval required the developer to prepare a plan to encourage residents to use public transit and reduce the demand for residential parking.
In response to increased industry wide building construction costs, in or around May 2023, the developers approached MTS staff with a proposed redesign. To reduce construction costs, the developers proposed six smaller buildings (instead of the approved 4 buildings) and removed the podium construction design where a podium is constructed to allow parking below and housing on top. This allows for a 18% increase in estimated occupancy, buildings to be financed more easily, and a more competitive application for tax credit allocation awards.
The amended Project approved by the Board on December 14 includes 160 parking spaces, with 80 of those spaces reserved for MTS’s exclusive use. All of the proposed housing units would be rent restricted, with 304 being restricted to below 80% Area Median Income (AMI), and 102 units being restricted to below 110% AMI. Developer-proposed amenities in the new design include micro-grid battery storage, childcare facility, community rooms, bodega, running loop, linkage to the Otay Valley Regional Park, promenade, bicycle garage and micro mobility stations.