DEL MAR, Calif. (KGTV) — The Del Mar Fairgrounds and the City of Del Mar disagree over the LOSSAN corridor realignment, and that argument has now derailed plans for affordable homes on the Fairgrounds property. This could put the city’s compliance with state housing laws in jeopardy.
LOSSAN Corridor realignment
The LOSSAN corridor runs along coastal bluffs in Del Mar that, for some time now, have been slowly crumbling into the ocean.
The rail corridor that carries millions of passengers and billions of dollars in goods annually has already seen several closures this year as crews work to stabilize the tracks.
As a long-term solution, SANDAG proposed moving the tracks away from the bluff edge by tunneling under the City of Del Mar.
However, the City of Del Mar and the 22nd District Agricultural Association, a nine-member, governor-appointed board that operates the Del Mar Fairgrounds, don’t agree on which of SANDAG’s proposed options is best.
One option would route the tracks near the Fairgrounds through San Dieguito Lagoon to I-5, eventually joining up with the current right of way before Sorrento Valley Station. This option was rejected by the Fairgrounds board.
Tristan Hallman, spokesman for the 22nd DAA, told KPBS, our newsgathering partner, in January the Fairgrounds alignment would “destroy the Fairgrounds in terms of what we’re able to do here” while construction is ongoing.
But Del Mar Mayor Terry Gaasterland said this alignment is the best choice because the other options presented by SANDAG would impact residential housing.
“About 50 homes would be right in the area where the portal is,” Mayor Gaasterland told KPBS. “And then about 500 homes would either be above the tunnel or laterally next door to a house above the tunnel.”
SANDAG’s Value Analysis Study released this month states that one of the agency’s objectives will be to minimize the impact on surrounding homes, businesses, tourism and “economic generators” like the Del Mar Fairgrounds.
The agency’s presentation to the Del Mar City Councilon Feb. 18 says the Fairgrounds route would be roughly two to three times more expensive than the other proposed options.
Meanwhile, as SANDAG considers the different routes in the long term, it's moving forward with building a replacement for the more than 100-year-old bridge over the San Dieguito Lagoon.
That project will also build a new special events platform at the Fairgrounds, allowing riders to take the Coaster or Pacific Surfliner to events like the San Diego County Fair and horse races at the Del Mar Fairgrounds.
Earlier in 2025, Mayor Gaasterland sent a letter to SANDAG asking the agency to delay the bridge replacement project until the routing for the corridor is finalized.
The 22nd DAA sent its own letter arguing delays could mean losing funding for the bridge replacement and the seasonal events platform.
However, the bridge project is fully funded, approved by federal officials, and moving through its final design phase. The project website says construction is set to begin in 2026, with completion anticipated in 2030.
During SANDAG’s presentation to Del Mar on Feb. 18, Mario Orso, SANDAG’s CEO, tried to address their fear that moving forward with the bridge project would affect the feasibility of the Fairgrounds option.
“What we’re looking at on that project,” Orso said, “[Is] seeing how we can segment or sequence a very long construction project, so certain things that are not in question can proceed, and other sections can be left at the tail end of the construction, in case we have a better idea of which alternative the Agencies are leaning [toward].”
But the Mayor’s letter and her support for the Fairgrounds alignment are already jeopardizing an affordable housing development on Fairgrounds property.
Affordable Housing Allocation
The City of Del Mar, like every jurisdiction in California, is required by state law to plan for a certain number of new and affordable homes as part of their housing element that you can read online.
If a city doesn’t submit a plan that is approved by the California Department of Housing and Community Development, that city loses some of its power over permitting under the Builder’s Remedy law.
SANDAG’s RHNA plan calls for more than 170,000 homes in the San Diego region; Del Mar’s portion is 175.
As part of reaching this goal, the City of Del Mar identified land at the Fairgrounds as a site for affordable housing. The city’s housing element was approved in part because of the expectation that this site would be developed.
In 2024, the city and the 22nd DAA launched a “two-year committed discussion” to explore building 61 affordable homes on the Fairgrounds property.
This kept the city in compliance with state law and free to deny plans for Seaside Ridge, a housing development proposed on the northern coastal bluff that would have included 259 homes, 54 of which were affordable.
The project was submitted under the Builder’s Remedy while the city’s housing element was not yet approved; the developer says this should mean they are entitled to their permits.
They argue it would provide real opportunities for new families to live in Del Mar.
The City of Del Mar’s housing element reports a net gain of 138 homes since 2000; in that time, the city’s population decreased by 10%, from 4,389 to 3,954 people, according to US Census data.
A lawsuit asking a court to mandate approval of Seaside Ridge is currently pending, according to The Coast News.
New developments
Last week, the Coast News reported that the Fairgrounds board is halting talks over the proposed 61-unit affordable housing development on Fairgrounds property due to the mayor’s comments on the City’s preferred rail alignment – saying they were “stabbed in the back” by Del Mar officials.
Board member Michael Gelfand, who motioned to pause talks, told Coast News the route supported by Mayor Gaasterland could negatively impact their property.
“This is not retaliation. It’s a response to a betrayal,” he said.
Failing to plan for all the homes in their housing element could leave Del Mar unable to reject the development proposed on the north bluff and subject to other penalties.
Coronado recently found out the state is ready to levy monetary penalties along with a loss of local zoning control on cities that don’t have a compliant housing element.
After a years-long back-and-forth with the state, the Coronado City Council “begrudgingly” adopted a housing plan to allow more than 900 homes.
“The City of Coronado has wisely chosen to collaborate with us and confront its housing challenges head-on,” Attorney General Rob Bonta said in a statement. “The housing crisis we are facing in California is enormous, and the only way we can tackle it is if every local government follows the law and builds its fair share of housing.”
But Del Mar City Manager Ashley Jones told ABC 10News that the city’s housing element would not be deemed non-compliant if the Fairgrounds plans were to fall through.
“If any of the sites that the city is relying on to meet its remaining Regional Housing Needs Assessment (RHNA) requirements become infeasible,” Jones said in an email, “The City will need to identify replacement sites within 180 days once those circumstances arise.”
She says the city has already amended zoning at multiple sites, which would allow for the development of affordable homes, but believes that won’t be necessary.
“We are highly optimistic that we will be able to find a path forward to continue discussions toward development of affordable housing on Fairgrounds property,” Jones said.
SANDAG is currently sharing the Value Analysis Study with different stakeholders, like the cities of Solana Beach and Del Mar. Staff will present their proposed alternatives to the SANDAG board on Feb. 28 and could then move forward to the environmental review process.
This will likely include another chance to gather feedback from the community, the City of Del Mar, and the 22nd District Agricultural Association.
The LOSSAN corridor realignment will probably take years before any plans are finalized, and it will be even longer before construction begins and any homes or the Fairgrounds are impacted.
Whether that debate will continue to impact the very real and immediate need for affordable housing in San Diego County remains to be seen.
