An agreement has been reached on a scaled down version of the controversial One Paseo Project.
As part of the deal, the San Diego City Council will rescind an earlier approval of the $750 million development in Carmel Valley.
The 1.4 million square-foot One Paseo Project includes the construction of stores and eateries, the expansion of a movie theater and the addition of more than 600 family apartments and a parking structure in Carmel Valley. Sixty of those apartment units will be affordable housing, the city council mandated.
The city council approved One Paseo 7-2 in late February, but opponents to the plan collected enough signatures to send it back to the council. They believe it is too big for the Carmel Valley area and will create a traffic nightmare.
But supporters, including Kilroy Realty, say it will bring 1,600 new jobs, 600 new homes and $630 million to the local economy.
Multiple groups banded together to file two separate lawsuits against the project, hoping to block its development in the courts.
On Thursday, San Diego City Councilmembers spent the day with attorneys from both sides in closed-door meetings.
Developer Kilroy Realty Corp. describes the compromise as still providing the needed housing but reducing the scope of office and retail components.
Among the changes are a reduction in average daily automobile trips by half, a 30-foot setback on several major roads, the elimination of one traffic signal on Del Mar Heights Rd. and a height limit of seven stories on office buildings, according to Kilroy Vice President Jamas Gwilliams.