realestate

California Developer Threatens to Halt Construction Amid Zoning Dispute

Tensions erupt at city council meeting over JB Pastor project development appeal.

A
contentious zoning dispute is unfolding in Carmel-by-the-Sea, California, where a group of residents is fighting to block a mixed-use development despite the village's severe housing shortage. The project, known as the JB Pastor project, has been approved by the local planning commission after six years of review, but opponents have filed an appeal citing concerns over parking and zoning regulations.

    The dispute has pitted neighbor against neighbor in the idyllic coastal town, with some residents welcoming the development's potential to bring much-needed long-term rentals. However, others are fearful that it will disrupt the area's historic charm and believe Pastor's wealth and status give him an unfair advantage.

    Billionaire developer Patrice Pastor, who has invested over $100 million in Carmel properties, is now considering pulling out of the project due to the ongoing opposition. "Following this latest city council meeting, it's clear that I need to reconsider my investment in Carmel," Pastor said in a statement. "It's time to leave this strange community, if you can call it a community."

    The median home price in Carmel is over $2.4 million, making it nearly impossible for younger generations to afford homes in the area. Prop 19, a California law passed in 2020, has also triggered higher property taxes for heirs after the owner of a home dies, forcing many families to sell their inherited properties.

    Resident Carol Williams, who founded an art gallery in Carmel 50 years ago, says that her daughter's generation is largely forced to rent due to unaffordable housing prices. "My daughter's generation of Carmelites are nearly all renting if they desire to remain in Carmel," she said. "I believe there are many people in the local community who would love to remain in Carmel and walk to work, but can't find any suitable long-term rentals."

    The city council failed to reach a decision on the appeal, scheduling another vote for next month. Realtor.com senior economist Joel Berner notes that discouraging development is counterproductive to addressing affordability issues in Carmel, where new construction remains extremely limited.

    For now, Pastor's future plans for Carmel remain uncertain, and residents are left wondering if the village will lose out on much-needed housing units due to the ongoing dispute.

California developer pauses construction amidst zoning dispute in Los Angeles area.