SAN DIEGO—Proposed mixed-use development One Paseo's developer Kilroy Realty is meeting opposition to the 23.6-acre mixed-use project with LEED features that will improve traffic and the environment, the firm's VP of development Bob Little tells GlobeSt.com exclusively. As GlobeSt.com reported earlier this week, recent local news reports say that the San Diego City Council this week tentatively approved the $750-million mixed-use housing, retail and office project in the Carmel Valley submarket after hearing several hours of testimony from hundreds of opponents and supporters, as well as a few slight modifications to the original proposal.

Reports also indicate that the One Paseo development would encompass nearly 1.5 million square feet of floor space, including more than 600 units of homes, shops and offices south of Del Mar Heights Rd., between El Camino Real and High Bluff Dr. Kilroy's project would be composed of 10 buildings ranging from two to nine stories, and it would include a movie theater, landscaping and nearly 3,700 parking spaces. As part of the council's approval, it is requiring Kilroy to deem roughly 60 residences affordable housing and to add an adaptive traffic-control system at nearby intersections.

GlobeSt.com spoke with Little about what makes the project unique in San Diego, how he feels about the opposition and the place of mixed-use projects in future development.

Globest.com: What makes One Paseo unique and special for this particular market?

Little: One thing that makes it unique is the fact that it is mixed use and there are three different types of land uses for it. Also, we're introducing a very sustainable model of development. The project has been through prerequisite review with the USGBC and has passed qualifications for smart growth. The plan itself will have multiple sustainable green features such as very efficient energy modeling—way more efficient than code—water-conservation measures and a system for retaining and treating storm water on-site. It's the highest standard in LEED and in sustainability that a project like this has seen in the region. Also, there is the mix of uses all in one project.

GlobeSt.com: Mixed-use hasn't really hit the San Diego market in a big way yet, has it?

Little: There are a few mixed-use projects that have been pursued, and the general plan and all the policies that San Diego has are in place to pursue projects like this. In fact, the general plan was set up with a city-of-villages initiative aimed at minimizing sprawl and horizontal development and encouraging more infill development within the existing infrastructure. It is set up to have these projects be successful, but it's still a difficult process to get a project through. We're expecting to break ground on One Paseo near the end of 2015, and we're in process with some permitting, but we have a lot to do here in the next several months, and there's about a two-year build out after that. We're planning a phase rollout of spaces with the retail Main Street to be established as early as possible and the office development after that.

GlobeSt.com: We understand that there has been considerable opposition to this development. What is our take on the opposition now that the Council has tentatively approved the project?

Little: There's been both opposition and a significant amount of support. We are supported by Circulate San Diego (formerly MOVE Alliance), San Diego County Bicycle Coalition, the San Diego Coastal Chamber of Commerce, numerous organizations and hundreds and thousands of local residents and business owners. The industry sees it as a real benefit for San Diego once approved. The main opposition was concerned about traffic impacts primarily, and the facts are that we have a disclosure document, an EIR, that outlines where there are potential impacts. The responsibility is on us to find ways to mitigate and improve areas where there are issues, and we've done that. There have been $6 million in off-site traffic improvements, and studies show that with the project we will have improved traffic in some locations with today's conditions and in other locations the same amount of traffic in others. With the project, we can support this type of improvements, but without it we can't.

GlobeSt.com: Do you plan to build more projects like this in San Diego or in the California market?

Little: We build, own and manage a significant amount of square footage in San Diego—we're the second-largest landlord in the market, and much of our portfolio here we've developed. So we're very familiar with the San Diego market, and our regional office is right where One Paseo is located. But this will be the first mixed-use project we are doing in San Diego. Most of our projects are corporate or multi-tenant office-related projects with amenities onsite, but ancillary to the companies who occupy those places. This is different, the mixed-use with residential and retail. We have done this elsewhere in the state, but not in San Diego.

GlobeSt.com: What place do mixed-use projects like this hold in future development?

Little: In many ways, I view this as the wave of the future in sustainable development. We can't continue to use up our natural resources and sprawl into open spaces. The population is increasing, and we need a better way to create a housing/job balance Downtown and in the suburbs and exurbs. Infill areas need to grow smarter, and this as a model for the future for those reasons. We can't separate employment factors from housing because it creates traffic issues. Also, both the Millennial generation and the Baby Boomers—the two largest segments of our population—share the same wants and needs, and both share the desire to live in a compact development with walkable streets that they can be proud of from a sustainability and green standpoint. The pedestrian-friendly element reduces dependence on automobiles and promotes a healthy lifestyle. With the climate here, a project like this with an open Main Street and all of these uses synergizing each other is going to be wonderful. Daytime employment will fill restaurants and shops during the day, and new and existing residents in the community will be able to enjoy them in the evenings and on weekends.

A lot of this mixed-use is the right thing to do, but it's also market driven. This is what people are demanding. I call it location efficiency—it's great when you don't have to get in your car every day, when you live close to where you work and everything you need is nearby.

GlobeSt.com: Will San Diegans, who are traditionally dependent on their cars to live, be able to embrace this lifestyle?

Little: San Diego has a Car To Go car-sharing program that's been very successful Downtown. We have talked to them about establishing a North County location at One Paseo. There are also some bike-sharing programs that have taken off here where members can unlock any bike at any location and return it when they're done. These programs have taken off in parts of San Diego, so we believe those who live, work and play at One Paseo would also embrace them.

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Carrie Rossenfeld

Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.