On Tuesday, the 22nd District Agricultural Association (DAA)—the governor‑appointed board that oversees the Del Mar Fairgrounds—voted 5‑3 to terminate the exclusive negotiating agreement it signed with the City of Del Mar in 2024. The agreement had been intended to allow the city to develop affordable housing on a portion of the Fairgrounds property.
Board cites uncertainty and procedural hurdles
Board members who supported the termination argued that the project faced too many unknowns to be viable before the agreement’s April 2027 expiration. The California Department of Housing and Community Development (HCD) has given Del Mar until November of this year to secure a lease, but the board said the timeline and the “messy” nature of negotiations made progress unlikely.
Several members also described the process as fraught with “animosity.” They noted that the only parcel considered suitable for development is currently an RV park that sits on state‑owned Fairgrounds land but falls within the City of San Diego’s jurisdictional boundaries. For Del Mar to receive regional housing need allocation (RHNA) credits, San Diego would have to annex the land to Del Mar—a step that board member Ted Miyahara said lacks certainty, especially with four San Diego City Council seats up for election next year.
Political backdrop and recusal
Earlier this month, the Del Mar City Council called for a special investigation by county and federal prosecutors into State Attorney General Rob Bonta and board member Mark Arabo. City officials expressed concern that both may have sought to block the Fairgrounds housing project because of ties to the developers of the controversial Seaside Ridge project on Del Mar’s North Bluff. Seaside Ridge developers are currently suing the city for repeatedly rejecting their plan.
Arabo denied any wrongdoing and voluntarily recused himself from any discussion or vote on the Fairgrounds housing proposal. “Out of an abundance of caution and for my deep respect for this board, I’m voluntarily stepping aside,” he said, adding that the recusal was not an admission of any impropriety.
Differing views among board members
Board member Phil Blair argued that the Fairgrounds should remain committed to the agreement, suggesting that the board’s support could encourage San Diego and other agencies to cooperate. Frederick Schenk reminded the board that it is mandated by the governor to facilitate affordable housing on state land.
Despite those arguments, the vote to terminate the agreement passed, with Blair, Schenk and Lisa Barkett voting against termination. With the Fairgrounds deal now off the table, Del Mar officials may need to rely on a state‑mandated backup plan that points to the North Bluff site—where the Seaside Ridge developers are prepared to move forward.
Future outlook
The city has not responded to requests for comment on the board’s decision or its next steps. The termination leaves Del Mar without a clear path to meet its affordable‑housing obligations, and the pending investigation into possible conflicts of interest adds further complexity to the city’s housing strategy.
Original reporting: Voice of San Diego — read the source article.
