Carlsbad Development Along Lagoon Wins OK of Coastal Commission

With little comment and no hesitation, the state Coastal Commission on Thursday unanimously approved a 1,600-unit residential development known as the Kelly Ranch for the eastern shore of Carlsbad’s Agua Hedionda Lagoon.

Although letters of opposition from the Sierra Club and the League for Coastal Protection were presented, no one spoke against the project, which won the commission’s endorsement after less than 30 minutes of testimony.

The approval paves the way for the developer, Cal Communities of Irvine, to complete plans for construction of the subdivision--which will be among the largest ever built next to any of North San Diego County’s six lagoons--and a small shopping center. It also represents the final green light necessary for the extension of Cannon Road, a major four-lane route, eastward from Interstate 5 to El Camino Real.

“We’re delighted and very proud to have won a unanimous vote from the commission,” said Wayne Callaghan, president of Cal Communities. “I think this vote shows that the commission appreciates the work we’ve done to address their concerns and put together a first-class project.”

The commission’s action comes after months of negotiations between Cal Communities and commission staff members in San Diego, who recommended approval of the 433-acre development under certain conditions. Commissioners, noting that it is rare that they unanimously endorse a project of such magnitude so close to a sensitive wetland area, praised both parties. Commissioner George Shipp III called the vote the beginning of “a new era” in relations between Carlsbad and the coastal panel.

“I’m absolutely delighted to see that the City of Carlsbad and our staff and the developer have worked together on this and actually agreed on something,” Shipp said. “I remember sitting here at other times and seeing something quite different.”

(Shipp was referring to the ongoing battle between the commission and Carlsbad over development and preservation of agricultural land in the coastal zone. In 1982, Carlsbad officials refused to prepare a required local coastal plan, and the state Legislature ordered the Coastal Commission to do the job for them.)

In order to obtain the commission’s nod of approval, however, Cal Communities had to agree to a rather hefty list of conditions. Among them are:

- In exchange for the right to build on more than 50 acres of farmland, the developer must turn over about 200 acres in the flood plain on the eastern fringe of the lagoon to the state Department of Fish and Game, which will preserve the parcel in open space.

- Cal Communities must construct a large siltation basin at the intersection of El Camino Real and Cannon Road to trap sediment that is currently swept downstream by Agua Hedionda Creek and dumped into the lagoon.

- Numerous lagoon restoration efforts must be undertaken and financed by the developer. These include the removal of nearly 25,000 cubic yards of silt and landfill from the wetland, the extension of tidal channels in the eastern corner of the lagoon, and the creation of nesting habitat for the California least tern and other endangered birds that frequent Agua Hedionda.

- The developer must construct an interpretive center, to include benches, a walkway, landscaping and parking spaces, on the northern edge of the lagoon, and must fence in a large portion of shoreline to protect bird habitat from domestic pets and off-road vehicles.

- Because the alignment of the newly extended Cannon Road will destroy about 13 acres of wetlands, the developer must provide “mitigation,” or create an equal number of acres of new wildlife habitat.

Callaghan said that, overall, he felt the conditions represented a fair compromise.

“We’re pleased,” he said. “It’s been a long road, and this project is a lot different today than it was when we started in 1982. But generally I think we got a fair deal.”

Carlsbad Councilman Richard Chick, who spoke at the meeting, also praised the outcome, calling it “something we’re all content with.” Chick said that city officials were particularly anxious to see Cannon Road, which exits Interstate 5 at Car Country Carlsbad, extended eastward.

“We desperately need that road to serve the growth that’s under way and will continue for the next 20 years in the eastern portion of the city,” Chick said. The road is also expected to serve the expanding industrial area around Palomar Airport and the proposed Macario Canyon Regional Park.

By far the most critical aspect of the plan, in the eyes of commission staff members, is the donation to the state of 200 acres adjacent to the lagoon. Earl Lauppe, a wildlife biologist with the California Department of Fish and Game, said the parcel likely will be designated a state ecological reserve when it is turned over to his agency by Cal Communities, probably near the end of the year.

“Getting that property into public ownership and under lock and key was very crucial,” Lauppe said. “I think we got a good package, although it took a lot of work.”

Despite the commission’s approval, Callaghan said the Kelly Ranch project is in a sense held hostage by a general plan review under way in Carlsbad. A citizens’ committee is evaluating the city’s general plan and is expected to suggest modifications to the document by July 1. New policies could change permissible densities in the city or institute new regulations governing development in Carlsbad.

“Theoretically, even though the city’s approved our master plan and we’ve already got the go-ahead from the commission, the whole project could die if they come up with a whole new general plan,” Callaghan said. “Whether or not I’d be willing--or financially able--to start over again on this, I don’t know.”

Callaghan said he and another developer assisting on the project, Kaufman and Broad of Southern California, have invested more than $1 million in the Kelly Ranch over the last two years.

The development will consist of single-family homes and townhouses, with the density ranging from 4 to 10 units per acre on the eastern shore and up to 20 units per acre on the northern shore, Callaghan said. He said roughly 75% of the site will remain in open space and a small commercial complex will be built on 4 acres alongside Cannon Road. Cal Communities had hoped to build a tennis college and recreation facility on the edge of the wetland, but commission staff planners said no.

Two other developers proposing projects on the shore of another lagoon in Carlsbad--Batiquitos--were also at the meeting Thursday. D.L. (Larry) Clemens, local representative for the billionaire Hunt brothers of Texas, was on hand looking for clues as his company continues planning for the Pacific Rim Country Club and Resort on 1,385 acres near Batiquitos.

Jon Briggs was there as well, representing San Diego-based Sammis Properties, which hopes to build a graduate school, hotel and research park on 166 acres on the northwestern shore of the lagoon.

And sitting quietly in the back of the Santa Barbara County Supervisors chambers was a graying, bearded man in cowboy boots--W. Alan Kelly, whose family has owned the 433-acre site of Kelly Ranch for more than 100 years. The property at Agua Hedionda is one of the final remnants of 13,000 acres the Kelly family once owned in the Carlsbad area. The property was part of a Mexican land grant made in the early 19th Century.

“This is kind of the end of the line for us,” Kelly said somewhat wistfully after the meeting. “We made a decision to allow development of this piece a few years ago because we couldn’t afford to hold it and pay the taxes any longer. We don’t necessarily like it, but there wasn’t much else to do.”

Cal Communities and Kaufman and Broad are developing the project for the Kelly family and have an option to acquire the property at a future date.