Rouse Properties had big plans for The Shoppes at Carlsbad mall on El Camino Real when they purchased the property in 2015. While attempting to reinvigorate the Carlsbad retail epicenter, they also wanted to introduce 321 apartments or condos, a 214-room hotel, and 25,800 square feet of additional retail space across 24 city-owned acres that are currently used as a parking lot.

The City Council didn’t quite see things that way, however, and voted unanimously to deny the request before the development process began. Per the San Diego Union-Tribune, city planner Don Neu said that construction of so many new residences would hurt retail operations and stunt ongoing growth of the area.

The larger issue is that the area the mall is located in, Carlsbad’s northwest quadrant, is already nearing the maximum number of residences allowed by the growth management plan. 

The council has asked Rouse to continue working on fine-tuning their plan, perhaps with less homes included. Both sides also need to discuss further the city’s role as owner of the land and the risks involved.