Palm City Village – TOD with Affordable Housing Moving Forward in San Diego

On October 14, 2021, the Metropolitan Transit System (MTS) Board approved a 390-unit affordable housing complex to be built on a four-acre parking lot at the Palm City Trolley Station in South San Diego. The Board voted to enter into Disposition and Development Agreements (DDAs) with two co-developers, National Community Renaissance of California (National CORE) and Malick Infill Development (MID).   National CORE is proposing a 288-unit affordable rental project and MID plans a 102-unit middle -income rental project.  The Project, dubbed Palm City Village, is a transit-oriented development that will also include a child care facility and outdoor recreation space.

Keyser Marston Associates (KMA) was retained to undertake a feasibility analysis of the Project, including evaluation of three proposed phasing scenarios, and analysis of the proposed ground lease structures and related business terms. The KMA analysis also took into consideration the impact on the Project from the MTS Board’s joint development policy, which includes provisions for affordable housing prevailing wage and skilled and labor requirements on all joint development projects.

The Project fulfills multiple MTS policies including promotion of transit ridership, limiting on-site parking demand, facilitation of in-fill development to achieve climate goals, and provision of direly needed affordable housing. The Developers will incentivize and facilitate transit ridership by providing mobility friendly features such as bike lockers and a ride share pick up area while other incentives will target residents. The Developers also signed a Project Labor Agreement guaranteeing union wages and benefits, which insured the support of the San Diego Building and Construction Trade Councils.