Understanding the Legal Loopholes Fueling an Out-of-Scale Project in a Coastal Neighborhood
The proposed Turquoise Tower is a luxury high-rise planned in a modest coastal neighborhood. It’s tall, dense, and completely out of step with local zoning, infrastructure, and design guidelines.

So how is it possible?
Because it exploits state housing laws, local bonus programs, and legal loopholes that shift all the power to developers. Let’s walk through how this works—and why it matters.

1. State Laws Override Local Zoning—and the City Can’t Push Back

Developers of the Turquoise Tower, Kalonymus LLC (developer) are using laws like:

• The State Density Bonus Law (Gov. Code §65915)

If they add a few affordable units, they can demand extra height, more units, reduced parking, and bypass most design rules.

• The Housing Accountability Act (Gov. Code §65589.5)

If a city denies the project -even for valid reasons - they can be sued, and courts almost always side with the developer with high priced legal teams.

2. Fake Transit = Real Towers

Turquoise Tower developer claim the project qualifies for “Transit Priority Area” bonuses—because of a nearby bus stop.

But:

• That stop doesn’t offer high-frequency, all-day service
• There’s no trolley or rail nearby
• The area is still car-dependent

This “Fake Transit” designation opens the door to density bonuses never meant for this kind of neighborhood.

3. It’s Zoned Mixed-Use—But the Project Is Neither True Housing nor a True Hotel

The Turquoise Tower is proposed on mixed-use zoned parcels, which allows a combination of commercial and residential uses. But the developer isn’t building a clear version of either.

Instead, they’re proposing:

• 30+ day furnished “rental suites”—not apartments with long-term leases
• No front desk, no concierge, no public reception, no hotel-style services
• No lobby or amenity space typical of a hotel
• Units designed more like corporate suites or furnished rentals than homes

This means the project is:

Not a true hotel (so it avoids hotel taxes, CEQA commercial analysis, and city hotel planning rules)
Not true housing (so it avoids long-term residential oversight, lease protections, and parking expectations)

Yet by claiming it’s housing, the developer is attempting to unlock:

• Extra density and height under the State Density Bonus Law
• Ministerial approval with no public hearings
• Reduced parking and infrastructure requirements
• A legal shield from discretionary city oversight

This is purpose-built ambiguity. The developer is threading the needle between two categories to maximize profit while minimizing accountability.

4. City of San Diego Adds More Bonuses for 3-Bedroom Units

City law gives extra density for including 3-bedroom units—even if:

• They’re not affordable
• They’re not intended for families
• They’re just larger “suites” marketed to high-income tenants or travelers

This is the “3-Bedroom Bonus”, and it’s being stacked on top of the state incentives under the pretense of family housing, and yet it has no affordability requirement.

5. Developer Inflates FAR with Hotel + Garage—Even Though It’s Not Allowed

The developer claims a Floor Area Ratio (FAR) of 8.37 by counting the entire 408,641 sq ft building - including hotel rooms and the 7-story parking structure.

But under California law:
Only the 74 housing units are allowed to count toward FAR and density bonus calculations—not the 139 commercial hotel-style units or the garage.

They’re inflating the numbers because they can—and the City may let them.

To quote a certain malignant narcissist:

“If you’re going to lie, lie big.”

This FAR is a big lie.

6. Burden of Proof Is Backwards. And Taxpayers Pay the Price

This is where it gets even more unfair.

• The developer proposes 10 affordable units (5 very low income, 5 moderate)
• Demands massive height and density bonuses
• State law requires the City - not the developer - to prove those bonuses aren’t needed

To do that, the City has to:
• Hire outside consultants
• Build financial models
• Spend your tax dollars just to try to say “no”

If the City can’t prove a negative, the project must be approved - by default.

7. All Approved Through a Ministerial Permit

This entire project is being processed as “ministerial permit”—meaning:

• No public hearings
• No CEQA environmental review
• No oversight by the Planning Commission or City Council
• No chance for community feedback

A tower that will impact traffic, schools, infrastructure, parking, fire services, and views is being approved like a kitchen remodel.

8. Taxpayers Pay for Infrastructure Upgrades

The Turquoise Tower adds major density to an aging neighborhood but the developer isn’t required to fund the necessary upgrades.

Instead, you will.

• New traffic signals? Taxpayer-funded.
• Water and sewer upgrades? Taxpayer-funded.
• Increased demand on emergency services? Taxpayer-funded.
• School overcrowding? Taxpayer-funded.

This is public subsidy for private profit.

9. City Transparency Has Been Minimal—and Fear May Be Driving It

San Diego’s Development Services Department (DSD) has been unwilling or unable to answer basic questions about how they’re evaluating this project:

• Is the developer correctly applying the Density Bonus Law?
• How are they justifying hotel use under housing laws?
• Is the 3-bedroom bonus being applied properly?
• What modeling is being done to assess financial need for the bonuses?

Despite community inquiries, DSD has provided almost no clear answers.

Why?

Like many cities, San Diego may be afraid of being sued by the developer’s high-powered legal team, known to work with Turquoise Tower’s real estate investor developer Kalonymus LLC, who is behind similar controversial projects statewide.

This is the chilling effect of California’s housing law:
Cities are scared into silence, and the public is locked out.