By Geoff Page
Those of us raised in the television generation grew up with images for stories. The generation before TV listened to radio programs with as much enthusiasm, it seems, as the TV generation did to TV. We have images that are inseparable from horror stories we know. It was a wonder to us how the radio generation could be as scared as we were, without pictures.
This writer does not wonder any more after listening to a podcast by two developers, Shawn DiMartile and Mike Tighe, talking about their ADU project in Ocean Beach. It is possible to horrify a person with only words.
This was a psychological horror podcast. What was horrible about it was the complete lack of morality and the nonchalance. Clearly, the only goal is money, nothing else matters.
This appears to be a second ADU Complete Communities project in OB, a third project is just outside the OB boundary. No idea if these are connected in any way. The podcast did not give the address.
These two developers bought a property that consists of a two-bedroom, one bath house on a 7,000 square foot lot. They plan to add 12 more living units for a total of 13. They will remodel the existing house, expanding it for two new units. There will be a new three-story building with 10 units in it. One more unit will be over the garage.
The new building will have four studios on the first floor and four on the second. The third floor will have two two-bedroom units. There will be a rooftop deck.
They plan to have six parking spots but residents will have to pay extra to rent one of those. The speaker said parking was not needed anyway because there are a “kajillian” places to park on the surrounding streets. No hint of sympathy at all for the people this would affect.
The developers also plan to have storage on site but, that too, is only for rent. The podcasters nonchalantly discussed this saying that naturally, people will need space to store things because these studios will be very small. So, they are providing it, for extra rent.
What this really means is that a person’s “rent” for a studio will be higher than advertised as residents will need to “rent” more space to live.
Then, the story got really bad. These two are planning to remodel the front house, taking care to only remove 50% of the structure to avoid a coastal permit. Once done, they will turn the existing house into a short-term vacation rental in order to cash flow the project. They said they already had the vacation rental permit.
It does not take a genius to see what a really bad precedent these two developers could be setting. Cash flowing a construction project using STVR income is an obscene idea. It is a double whammy to wherever these things pop up. Ruining a neighborhood with overly dense projects with no parking is egregious enough but adding a vacation rental to the cacophony is just an insult.
Sadly, a former resident of OB is responsible for a big part of this. Apparently, a man owned this property and a few others in OB at one time. The podcasters said he sold everything and moved to Texas and bought a ranch but still owned the one house.
The two developers talked the property owner into owner-financing the purchase saving them money. And, they talked him into interest-only payments for a period while the place was being built. They said without this deal with the owner they could not have gone forward with the project. The owner will make a lot of money on the deal at the expense of his old neighborhood, but he lives in Texas now so he apparently does not care.
There was a long discussion about how they decided on how many studios or two-bedrooms should be in the project. They said they wanted the mix that they could sell for the highest dollar. They said that studios have a high transiency rate, which provided opportunities to raise rents frequently.
The plan is to lease the units and then sell the whole development. According to the podcasters, the eventual return on this project for investors would be 20%.
They are confident they can rent the units easily because each unit will have an ocean view, which will enable them to charge more for rent. They said they do not plan to offer any rent concessions, expecting the units will be so popular.
They said that they packed as much on this lot as humanly possible. The only desire, expressed throughout this podcast, was to make as much money as possible. There was not a hint of human emotion at all.
They saved the scariest for last. They said they are going to target this zip code for more projects.
This is not what the mayor’s Complete Communities Housing Solution was meant to produce. These two developers never mentioned affordable housing and were in fact, blatantly appealing to a high-end market. How will this kind of thing help the housing problem? It will not, but it will allow developers with no conscience to make money and that makes the mayor happy.
Listen for yourselves folks. Here.
https://podcasts.apple.com/us/podcast/the-real-estate-takeoff/id1490657109?i=1000612525110
These people and their ilk are coming after YOUR NEIGHBORHOOD. If we don’t fight them every step of the way, every street in OB and PL will have at least one 8 unit ADU property with zero parking on every block. Listen to the podcast linked in the article. Be afraid, BE VERY AFRAID.
I receive daily messages and weekly snail mail from realtors and/or investors who want to buy my property. I seriously doubt they are seeking homes for families, but are looking for investment opportunities just like these two guys are.
I think this is a problem/feature of homes being treated by the same economic system in the same manner as any other commodity like cars, TV’s, or couches. The seller is encouraged to maximize profits, the commodity goes to the highest bidder, with no consideration of collateral impacts. This works ok for Tv’s and couches where the collateral impacts are minimal, but not so great where collateral impacts are widespread, and involve more folks than just the seller and the buyer.
And if you live high on a hill, overlooking the bay or ocean and think this could never happen in your hood, THINK AGAIN.
I’ll give my last $ and breath to fight this b.s.
These are your planning peeps, the ones in charge:
The Planning Commission conducts hearings on all special use permits, all re-zonings, all community plans, the General Plan, considers land use ordinances and such other improvements as Council may, by ordinance, determine.
Planning Commissioners are subject to the California Political Reform Act and the City’s Ethics Ordinance and are required to file Statements of Economic Interest. They must disclose any conflicts of interest and recuse himself or herself from the meeting if necessary.
Kelly Moden
Kelly owns a company called cREate – from her website describing what she does for a living:
A woman-owned real estate development company with a focus on untapped value and creative solutions. Although we are based in San Diego, our acquisitions and projects are focused on the multi-family asset class within the western United States. Progressive in our aesthetics and amenities, forecasting market demands, cost effective designs, and maximizing site potential are some of our strengths. Our goal is to thoughtfully change the landscape and add more homes in the localities in which we develop.
Matthew Boomhower- he is pro-SB10
Matthew is pres and founder of Southern Cross Property Consultants, ie: he makes his $$ in the following ways:
“SCPC is a construction management, technical architecture, project permitting and facilities management company. He remains active in the business as President, presiding over offices in San Diego and Orange counties. He also has a solo law practice in San Diego where he advises clients in land use matters and serves as outside counsel to several closely held businesses.”
Farah Mahzari
Farah is aka: San Diego Land Lawyers, she fights for the side of the developer/owner and helps to find loopholes – how I interpreted their mission statement from their site
Ted Miyahara – he is pro-SB10 – currently the Executive Director for the San Diego Community Housing Corp – they build “affordable” housing. They do however, work on projects that provide housing for homeless veterans (they get a star for that one.)
Kenneth Malbrough – retired deputy fire chief and former chair for Encanto Community Planning Group – no other affiliations that I could find.
Dennis Otsuji – landscape architect- no other affiliations that I could find.
Am i correct in assuming these commisioners were appointed by Todd Gloria ?
Appointed by Mayor with Council Approval. One vacancy currently. Thanks to Cindy for digging up these backgrounds.
Genuine question: There are 7 Planning Commission Members for San Diego and 9 Districts. Why do Districts 5 and 7 both have 2 Planning Commission Members whereas Districts 2, 3, 6 and 8 have none? I doubt it would make ANY difference, but this smacks of development without representation.
https://onboard.sandiego.gov/board/3477
Also scary that the 2 who are not known to have other development affiliations are the ones with expiring terms in just 8 months. We need to be very aware of who is proposed by the next mayor and voice our opinions to our Council Members at that time. It can’t just be a rubber stamp.
Not to stray too far from the heart of the matter which is very frightening, but the part about the man who sold everything in OB and bought a ranch in Texas sounds a lot like the former owner of a very popular noodle restaurant here in OB who also started a liquor company that has become quite successful. Could be totally wrong about this, but if this is indeed that same person, I wonder if he’s aware of what kind of disaster this is creating and if we have any recourse in appealing to his OB heart strings to stop these guys from doing what they’re trying to do.
I don’t think it is the person you are describing, who, I believe, still lives in OB.
he moved to texas.
Also, note that Complete Communties and Bonus ADU are 2 different programs. The only STR allowed in either would be in the front dwelling unit of a bonus ADU project.
How do you know he moved? I can’t find anything about that.
Moving to Texas was mentioned in the podcast. I agree that it’s not the noodle restaurant owner, as he’s still in OB to the best of my knowledge.
What’s the problem, folks? They are not doing anything illegal, just smart business people, how come one of you did not get off your duffer and buy the home and leave it as a SFH, I barely graduated from Mission Bay high school, worked for Bud Fisher and quickly learned real estate is where the money is in San Diego, I hobbled together RE loans through shady lenders, bought property with 3% down, stacked in HUD tenants and starting my “mini empire” avoided OB like the plague, it was too dirty, got into a few crackerboxes in La Jolla, it’s been decades since I have had to chase p****. it chases me,
oh I dunno Mr. Marx, maybe because no one thought a bunch of douchbags would come into town and actually do something like this?
Cindy are you saying that no one ever believed that people would buy property to make money? I find that hard to believe!
Good grief, please stay on track.
That’s a good one, Cindy. Thanks.
I didn’t listen to the podcast but your summary sounds exactly like the property at Pescadero and Froude (PRJ-1111217: 4591 Pescadero Avenue).
It does sound very similar but, I just checked the plan set and it describes a different project. The plan set that the Peninsula Community Planning Board got shows a new 8-unit building on a lot with an existing house. There is nothing about remodeling the front house or adding a unit over the garage.
However, Shawn Dimartile is listed as the Owner. It appears that these two may have two projects or something is amiss with the description on the podcast and what the plans show.
The podcast was made a year ago, when SB-10 was still being considered. The plans may have changed since then, due to its defeat. There is also something on the city website applying to add a kitchenette to the main house.
4648-4650 Point Loma Ave is another project using the Bonus ADU law. The scope I saw showed 8 ADUs plus the main house, which also had the garage being being expanded. Not clear whether that garage included a 9th ADU conversion or not.
The existing front house does have a STRO license on it. I did not look up ownership, and I haven’t seen any plans since it is a Process 1 and not going to CPG review.
The PCPB Project Review Committee saw 4591 Pescadero. It was an information item only. NO ONE from the project showed up so we had to dive into it ourselves. 128 members of the public attended. This is adding 8 units and no remodel.
Looks like a hotel. Can’t get the Front Elevation to copy here.
The Mayor’s office has responded to a neighbor:
Hello,
Thank you for contacting the Office of Mayor Todd Gloria. The process you are describing is considered to be a discretionary level but not at a process level high enough to receive City Council hearing, therefore, it is out of elected officials’ control. The project is as described, but the location is within a Transit Priority Area and therefore qualifies for the ADU Density Bonus Program which allows one market-rate ADU for every deed-restricted home up to a certain density limit. The 923-bus route passes a block away from this location and connects to the Airport and Downtown. See route image below.
Additionally, I wanted to share that the City uses SANDAG’s 2021 Regional Plan to determine the location of Major Transit Stops both existing and planned for 2035. The Major Transit Stop closest to 4591 Pescadero Avenue is located on Orchard Avenue and Sunset Cliffs Boulevard and is based on the intersection of Route 923 and Route 10. SANDAG has identified these routes as having 10-minute frequencies during peak commute times in 2035 (see pages A1-1 and A1-6 of the SANDAG Regional Plan Appendix A), which is consistent with the definition of a TPA in PRC Section 21099 and the City’s TPA definition in section 113.0103.
Here is a link to SANDAG’s webmap of the 2021 Regional Plan Major Transit Stops and TPAs:
Also included a map.
IMHO all this should be stopped until challenge to SB9 is settled.
The City’s transit priority map is so disgusting with how much of the City it covers given the current state of transit. Really shows that TPAs are a developer handout and have NOTHING to do with building near transit.
https://webmaps.sandiego.gov/portal/apps/webappviewer/index.html?id=4efd01a2e06246adb36122fcf136f95d
As I’ve mentioned before, Mao Tse Tung, in 1930, in his
Statement “A Single Spark Can Start A Prairie Fire”, identified the three enemies of the people as the Imperialists, the Warlord class, and the Landlord class. While the Imperialist and Warlord class engage in wars in Ukraine, Israel and Yemen, the Landlord class wages wars against the people who seek affordable housing. It’s time to shut them down.
Yeah let’s follow Mao’s philosophy. What could possibly go wrong?
Hey, whether you like it or not, Mao was the George Washington of the modern Chinese nation.
Sorry Frank, he is not someone to be admired.
It’s okay. A2DA
The Brits said that about George Washington.
Tom: Please tell me how helping greedy developers build 20 units, 17 of which will be market rate rents and only 3 of which will be “affordable” based on some government formula, is helping “the people who seek affordable housing” shut down the “Landlord class”? Slogans are great, but real solutions are more complicated.
Thank you, Jane for the information about the podcast, you may have cleared that up. You mentioned the city website showing a kitchenette, do you have a link to that?
It no longer says kitchenette (or I’m not remembering what it said correctly), but it says “Combination building permit for proposed remodel to existing residence. Work to include: new paint, bathroom fixtures, flooring and landscaping; conversion of existing living room into JADU”. So I believe a JADU must come with some type of kitchen. T<a href="http://“>his is the site.
It also seems that it is being given a new address of 1485 Froude, but the link is found by searching on 4591 Pescadero. I walked by looking for a 1485 Froude and there is none. Considering the nearby addresses, it makes sense for the 4591 Pescadero house (which is on the corner at Froude).
Jane: I think that this is the permit for the remodel done on the existing house on the property. The applicant/developer illegally, without permits, remodeled the existing house with the intent to rent it as an Air B&B . Vigilant neighbors caught this and reported it to Code Compliance. The City has now required that the developer get a permit and re-do the work in compliance with Code. The really bad thing about this is the City is apparently working this property on two tracks. The City is treating the remodel as “What is the processing timeline requested for this application?: Standard”, while allowing the ADU project to proceed on the expedited timeline, instead of requiring the developer to complete the permitted remodel before moving forward with the ADU project. Just another thing we should all be really angry about.
The illegal remodel at 4591 Pescadero seems to be the reason they are not ready to present to the PCPB. They need to clear this up first.
Also the neighbors caught this error. Another reason a Grand Jury Investigation into DSD is necessary.
Why would they be referred to you at all? This sounds like a Process 1 “Administrative CDP” project.
Not requiring planning group review to build a new 8 unit apartment building (without parking) in a single family home area is ridiculous, but not surprising given recent events. This project is completely out-of-character for the neighborhood and an affront to all homeowners.
That is my question too. In the past, any project that required a CDP or a an NDP had to come to the planning board. But, the city has removed the planning boards from the process so I don’t understand that either.
Wild, but true. This is a recent change as of late 2022 I think, in order to expedite these projects, it was certified by the Coastal Commission. Non-appealable [to Coastal Commission] area covers pretty much anything inland of the closest road to the shoreline.
“ADUs in the non-appealable area can be processed using an administrative CDP per §126.0707(g)(1). The project appears to be proceeding through this process, which does not require a CDP.
-Martha Blake”
“Yes, a process 1 CDP is applied to projects proposing ADUs in the non-appealable area of the Coastal Overlay Zone. Two ADUs are permitted on a multiple dwelling unit zone. The regulations allow one additional ADU for every ADU on the premises that is set aside as affordable.
Thanks,
Michael Prinz”
I hope someone will summarize all that you have discussed and have determined …
So, there’s an uncured building code violation and yet the city has allowed them to maintain an active STRO licence on it? Here is the listing:
https://www.airbnb.com/rooms/922706705217449193?source_impression_id=p3_1715976066_Tr3v0ltWBNQL%2BzIQ
Does anyone know if they left 50% of the original walls intact?
I brought up the code violation (by number) and the fact that it was a STRO (by license number and including the website) in my emailed letter to DSD and elected city officials. Here is the portion of the reply regarding that matter that I got from Jen Campbell’s office:
“The City is aware of the prior outstanding violations and therefore has notified the property. The violation must be rectified and the Code Enforcement officers will be working with the property to ensure things are rectified and to ensure moving forward rules continue to be followed. In short, Code Enforcement will keep a close on eye on this development moving forward to ensure everything is going according to the rules. At this point, the City Council and more specifically CM Campbell don’t have the ability to weigh in as the developers are following the regulations and guidelines in place to build this sort of ADU development”
So all they really say is that they’ll watch it more closely. A lot of words, but no beef in this answer (with all due respect to vegetarians and Hindus). BTW, what does notifying a property do? Shouldn’t the property owners be notified?
I have had no luck getting that site to work for me. I just did a search by address for 4591 Pescadero and the answer was there are no records. How did you do it?
here’s some data from the link:
Parcel Number:448-582-1500 *
Block:582
Lot:–
Subdivision:–
DSD_PARCELOWNERSHIP_ID: 187884
DWELL_UNITS_NUM: 1
MPR_MAIL_ADDRESS: 7901 CIVITA BLVD #441*SAN DIEGO CA\
MPR_MAP_NUMBER: 000279
MPR_OWNER_NAME: #TAKEOFF INVESTMENT 1 SPE LLC\
MPR_PROP_DESC_CHAR: BLK 13*LOTS 47 & 48*
RECORDED_DOC_CD: 1
RECORDED_DOC_DT: 04/14/2023
RECORDED_DOC_NUM: 098318
NAD83_EASTING: 6254149.48496
NAD83_NORTHING: 1848875.00609
SANGIS_APN_10: 4485821500
SANGIS_PARCEL_ID: 346755
I just checked TAKEOFF INVESTMENT 1 SPE LLC and Shawn Dimartile is one of the three contacts.
https://investorshawn.com/
https://www.linkedin.com/in/shawn-dimartile-ba6595274/
This is the guy we need to shut the door to, hard.
Okay, step-by-step, but no pictures.
Start at https://www.sandiego.gov/development-services
Choose big blue button “Search for Status of my Project” (I also tried the Interactive Map, but that didn’t work).
Choose “Building”
Choose “Yes” for application submission date.
Under DSD Permits, choose “Search Applications”
Type in 4591 and Pescadero in the Street No and Street Name boxes, respectively
Click Search
Top 2 records are for the 8 unit ADUs
Bottom 2 records are for the remodel
Click on the PMT or PRJ number
Click on More Details
Click on Application Information
You should see the sentence I quoted earlier, though I’m not sure if it was from the 3rd or 4th record (or both).
Thank you very much for that information, Jane, it is useful for everyone.
In the meantime, I compared your url to mine from my bookmark and discovered the one I bookmarked was the problem. I went to https://aca-prod.accela.com/SANDIEGO directly and started from there and that worked.
This system is pretty new which is why they ask that date question. Anything before that date can be found on the interactive map, which I have used for years. I just tested it checking on two new houses near me about three years old. They show up on the interactive map but not in the new site. Thanks again for everyone.
@GeofPaige.. Id be interested to see a follow up specifically focusing on the potfalls this poses for lending on single family homes. Once a property has more than 4 units it triggers commercial lending guidelines; this means no more FHA or VA loans, and only 30%+ down payment requirements. So if you go to buy a home for you and your family, you’ll be competing with multifamily capital funds and syndications. My concern being that it forces a scenario that only ends residential neighborhoods as we know them, and any chance of home affordability. Our Mayor has failed to understand this concept from day one; wondering if anyone else has ears for this concern?
It’s ok, we can just pay market rent for a lifetime to live in a studio off the alley.
And a few of us will get the benefit of a 15-year deed restriction that only allows they to price it at 110% AMI.. you know “affordable” to less than half the people in SD.
SD Assessors office shows:
4648-4650 Point Loma Ave
APN 4484610900
8/25/23
Grantee: Cooper Bryan Ray, Cooper Correy, Poppleton Robert A, Wright Dylan
It also shows a transfer to all 4 parties from what appears to be spouses. not sure why they’d do that, maybe to remove any joint-tenancy from marriage?
The RE listing for this property is nauseating:
“**Attention High End *Builders, *Developers and *Homeowners looking to build the dream.**** The 7000 sq ft ocean view lot , Zoned Rm2: Multiple Minor should accommodate *2*: 30’ tall homes with potential ADUs.Theres an alley, so both homes could have private entrances. Current home is cottage built in 1940, with an ocean view from the front porch. Imagine blue ocean views from a 3rd story deck. *****Location,Location, Location, just 1.5 blocks to the pacific ocean, and entrance to Sunset Cliffs Natural Park. *****Create you high end nest egg, in a luxury way, in this multi-million dollar neighborhood.**Attention High End *Builders, *Developers and *Homeowners looking to build the dream.**** The 7000 sq ft ocean view lot , Zoned Rm2: Multiple Minor should accommodate *2*: 30’ tall homes with potential ADUs.Theres an alley, so both homes could have private entrances. Current home is cottage built in 1940, with an ocean view from the front porch. Imagine blue ocean views from a 3rd story deck. *****Location,Location, Location, just 1.5 blocks to the pacific ocean, and entrance to Sunset Cliffs Natural Park. *****Create your high-end nest egg, in a luxury way, in this multi-million dollar neighborhood. There’s money to be made here!”
-Cindy Wing, Coldwell Banker West
Cooper Bryan Ray owns 1 other property since 2005.
Cooper Correy is on 7 other properties in SD including some local: 4486920800, 4486920700 (2246,2252 Seaside) Purchased in 2024 and 2016
Poppleton Robert A is listed on 15 other properties in SD, none in 92107
Wright Dylan is listed on 9 other properties in SD, none in 92107
I didn’t check spouses, or possible resale of these properties.
Property tax mailing address for the 4648 Point Loma ave ADU project goes back to a 5059 Newport Ave #301.
This is an office space within the South Beach address.
Formerly occupied by Kugler & Purvis Inc, Gordon Kugler, Donald W. Purvis, I don’t know who is receiving mail there or their affiliation with the property beyond that.
STR license is registered to Jamie Cooper
Correy Cooper has this website: https://www.currentadu.com/
I found the previous owner, Kevin Thomas Mchugh. https://www.kevintmchugh.com/About
Looks like a younger resident who probably inherited the house. Sold for $1.745 million in August of last year.
Cooper is Cooper General Contracting and he lives on Santa Cruz.
So, two locals together are doing this to their own community. Just for money.
This project I noticed has already started construction. Lots of framing going up behind the main house.
Get ready for another developer poop-show
Another house on Adair just went on the market, family has lived there for 60+ years. Can we fight this BEFORE it gets sold to a developer? I know, probably not but worth a try?
This many STRO’s ADU’s etc, directly next to and across the street from an elementary school…. How are registered sex offenders vetted?