A pro-housing advocacy group says San Diego officials are violating state housing laws by requiring special approval of a proposed 23-story mixed-use tower on Turquoise Street in Pacific Beach.
Developer Kalonymus first pitched “Project Vela” at 970 Turquoise St. in 2024. The developer proposed a 23-story tower offering 65 market-rate housing units, 10 low-income housing units, and 139 hotel units. The novel proposal would allow the developer to maximize the housing they could build by including the 139 hotel units, which would be filled through traditional long-term leases, not nightly or weekly hotel stays.
Pacific Beach residents quickly organized in opposition to the project, mostly because it exceeded the city’s 30-foot height limit on new coastal buildings.
The city has also laid out its concerns with the project.
In a December 2025 letter, San Diego planners alleged Kalonymus was trying to pawn off housing units as hotel rooms to avoid abiding by the height restrictions.
But in an Aug. 10 letter to Mayor Todd Gloria, the YIMBY Democrats of San Diego say the city is ignoring state housing laws aimed at expediting affordable housing construction.
The pro-housing group says California’s Density Bonus Law supersedes local building restrictions — including the 30-foot coastal height limit in Pacific Beach. To expedite permitting, the state housing law also lets city staffers approve projects, rather than requiring a public hearing.
The YIMBY Democrats say the city is caving to public pressure and opposition from elected officials.
“[Q]ualifying projects west of Interstate 5 face a review process that functions as discretionary in everything but name, shaped by organized opposition from some of the most affluent neighborhoods in the region,” reads the letter from the YIMBY Dems.
The group argues the project should be approved by city staff and not face a vote by the Housing Commission or City Council.
“While we applaud the city for its usual housing-forward approach, we are disappointed to see it take the position that housing, especially housing affordable to most San Diegans, doesn’t belong near the coast,” reads the YIMBY Dems’ letter.
Members of Neighbors for a Better California, the group that is leading opposition to Project Vela, say the YIMBY Dems are mistaken, and that developers still need to answer questions about the project before any decision is made.
Marcella Bothwell and Karen Ventimiglia, members of the opposition group, say the city still appears poised to let city staff review the project, without subjecting it to approval from appointed or elected officials.
“Our concerns aren’t about whether the city should follow state housing laws,” Bothwell and Ventimiglia wrote in an email. “They’re about whether this particular development meets the legal requirements for the substantial density-bonus incentives and waivers being requested.”
The community group emphasized that the proposal exceeds current zoning restrictions by more than 106,000 square feet.
“We believe the City’s responsibility is to apply those requirements consistently, regardless of whether a project is ultimately processed ministerially or discretionarily. The question is not whether politics should override state law, but whether the project satisfies the legal requirements for the development benefits it seeks,” they wrote.
As for the status of the project, a city spokesperson told Times of San Diego that the developer, Kalonymus, is expected to resubmit its plans.
“The City has requested that the applicant clarify outstanding issues where the developer is requesting exceptions to standards and building code regulations,” wrote spokesperson Richard Berg. “The City expects the applicant to resubmit plans with clarifications that address those issues.”
