Planning Commission backs conversion of Studio 6 to 98 rental homes with 15 affordable units

The City of Carlsbad Planning Commission on Aug. 20 voted to recommend approval of a project to convert the existing Studio 6 extended‑stay hotel at the southeast corner of Cannon Road and Avenida Encinas into 98 rental units, including 15 units restricted as affordable housing.

Mike Strong, assistant director of community development, told commissioners the project proposes interior renovations to an existing three‑story, roughly 65,000‑square‑foot building and no increase in building square footage. The conversion would yield a residential density of about 31.4 dwelling units per acre and retain 123 surface parking spaces, exceeding the 98 spaces required by city code.

Staff and the applicant said the project qualifies for a CEQA Class 15332 infill exemption and requires amendments to a coastal development permit, a conditional use permit and a planned development permit. The applicant, Alliance Development Services, is requesting four waivers under state density‑bonus law and related local standards: an inclusionary housing standard waiver, a landscaped setback waiver on Cannon Road, a reduction in required community recreational space from 19,600 square feet to 15,518 square feet, and a waiver to allow the existing building height (roof edge ~36.9 feet and two towers at ~45.5–45.6 feet) to remain where the planned industrial standard limits height to 35 feet (45 feet for architectural projections).

Jim McMenemin of Alliance Development Services said the project will include amenities such as two pickleball courts, a dog run and a roughly 288‑square‑foot bike and surfboard storage shed, plus enhanced perimeter landscaping. Anna McPherson, the applicant’s consultant, said the project will reserve 15 units as affordable and will meet the city’s inclusionary housing rules and state density bonus eligibility while not exercising the maximum additional density allowed under state law.

Public comment collected during early outreach produced seven letters; six were supportive and one supported the project while expressing concern about pickleball noise. A noise study provided with the application concluded the project complies with the city’s noise guidelines and general plan noise policies. Commissioners also asked about interior unit amenities; the applicant confirmed each dwelling unit will be required to include kitchen facilities that comply with the California Building Code.

Commissioners discussed parking, setbacks and the project’s location near employment centers and the coast. Several commissioners praised adaptive reuse of an underperforming commercial property to deliver near‑term workforce housing. Commissioner Ginger Foster made the motion to approve staff’s recommendation and Commissioner Heubinger seconded; the commission then voted to forward the recommendation for council action.

Staff said building permits will require additional construction details, including building permit submittals for the proposed bike/surfboard enclosure and trash enclosure, and that the residential conversion must comply with applicable building codes (including green‑building requirements such as solar photovoltaic systems). The applicant said it expects to pursue building permits promptly and aims to open the project "hopefully by early ’27."

The Planning Commission’s recommendation forwards the CEQA exemption determination and the coastal development permit amendment, conditional use permit and planned development permit to the City Council for final action. Staff indicated the item is tentatively scheduled for City Council consideration this fall.