The developer of One Paseo and community groups opposing it agreed to a compromise Thursday that reduces the scale of the controversial 23-acre development in Carmel Valley.
The agreement between Kilroy Realty Corp. and three community groups that filed a lawsuit challenging the project was reached shortly before the beginning of a special City Council meeting to consider rescinding approval of the project or allowing a ballot referendum to proceed.
Developer Donahue Schriber, which owns the shopping center across El Camino Real from the site and financed signature gathering for the referendum, said it backed the compromise
“We too are here to support this compromise,” said Patrick S. Donahue, chairman and chief executive officer. “We are 100 percent supportive of this project.”
After one and a half hours of testimony, the City Council voted unanimously to rescind its approval of the project.
Kilroy said it will reduce the scope and scale of the office and retail parts of the project, including limiting building heights to seven stories, while providing needed housing. The reductions in the project will reduce the number of average daily automobile trips by roughly half while retaining the mixed-use character of the project.
“Kilroy has worked to deliver a project that meets many of the goals of the community, including more shops, restaurants, homes and public open space,” said John Kilroy, chairman, president and CEO of Kilroy Realty. “After significantly refining the project a number of times, this new project allows us to provide additional amenities to Carmel Valley without the delay of a protracted legal battle.”
The settlement precludes additional litigation by all parties to the agreement, allowing permit processing on the revised One Paseo to move forward.
Bob Fuchs, co-founder of the What Price Main Street? community coalition, said, “I believe that the coalition members, though not a party to the negotiations, will find the settlement conditions consistent with what has been advocated for many years, and will be happy to leave the controversy behind and look forward to reviewing a project the community can be proud of.”
The revised project will need to undergo additional review by the Carmel Valley Community Planning Board, the Planning Commission and City Council before receiving approval, in accordance with local planning guidelines.
The $750 million project was originally planned to include 199,000 square feet of retail space, a movie theater, 484,000 square feet of office space and 608 residences on a vacant 23.6-acre site south of Del Mar Heights Road, between El Camino Real and High Bluff Drive.








