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Monterey pushes county to scrutinize 239‑unit ‘builder’s remedy’ proposal near Highway 1

Monterey City Council · February 17, 2026
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Summary

City staff warned an 11‑story, 239‑unit proposal on Viejo Road could create water, septic, traffic, fire‑safety and wildlife impacts for Monterey and urged the county to require full environmental analysis. Dozens of residents and neighborhood groups told council the project is unsafe for the steep site and urged strong county review.

Monterey planners urged the Monterey County Board of Supervisors to subject a large proposed housing development on Viejo Road to rigorous environmental review, saying the project could strain water, wastewater, emergency and wildlife protections for neighboring Monterey.

Kim (city planner) told the council the proposal — currently described in county filings as an 11‑story building with roughly 239 dwelling units and several alternative applications for the same steep site — raises multiple technical and public‑safety issues. “Water supply is the obvious first concern,” she said, noting the region is under a regional cease‑and‑desist order and that the applicant has not identified an adequate off‑site supply. Kim said the developer submitted plans for an on‑site wastewater treatment system on slopes exceeding 25 percent and that county environmental health staff has requested geotechnical and hydrogeologic data the applicant has not supplied.

The city requested additional traffic intersections be analyzed, asked for a vehicle‑miles‑traveled (VMT) assessment for the nearby portion of Highway 1, and flagged tree and biological impacts along an important wildlife corridor. Staff also warned Cypress Fire Protection District and Monterey police would need automatic aid plans and new funding to meet additional service demand if the project is approved.

“This raises a number of health and safety issues,” Kim said, listing water, wastewater, evacuation and fire‑response concerns. Staff recommended the mayor send a comment letter asking the county to expand the scope of its CEQA (environmental) review and require the outstanding technical studies before permitting moves forward.

Public testimony filled the evening. Residents, neighborhood‑association leaders and representatives of the Agujido Property Owners Association described the site as steep, fire prone and on known wildlife corridors; former Cypress Fire District officials warned high‑severity fire maps show the area is a poor match for dense development. Chip Bates, an Agujido board member, said the best way for council members to understand the scale and risks is to visit Viejo. “When you walk up there and see what’s going on, it will shape your opinion,” he said.

Other speakers called the filing a likely legal strategy: several commenters noted multiple, different applications had been submitted for the same parcel and suggested the developer might use an oversized initial filing to gain leverage in later negotiations. Council members asked city staff about legal options and whether to involve the state Department of Housing and Community Development (HCD); staff and the city attorney said the “builder’s remedy” is a state mechanism that can allow projects in jurisdictions without a certified housing element to advance but does not exempt applicants from CEQA or public‑safety review.

Council voted unanimously to authorize the mayor to send the staff‑recommended comment letter to Monterey County raising the city’s concerns and asking that the county thoroughly adjudicate water supply, wastewater, VMT, fire protection, evacuation routes and biological impacts in the EIR process.

What happens next: Monterey will submit its formal comments to the county and the county will proceed with its environmental review and public hearings. The project remains a county‑jurisdiction matter; city staff emphasized the purpose of the letter is to ensure Monterey’s concerns are fully included in the county’s public record and EIR scope.