Del Mar's City Council asked county and federal prosecutors to investigate California Attorney General Rob Bonta and Del Mar Fairgrounds board member Mark Arabo, alleging potential conflicts of interest tied to the contested Seaside Ridge housing project.

The 3-0 vote came during a special meeting Monday, Aug. 3, called on 24 hours' notice and lasting barely 10 minutes. Councilmember Dan Quirk was absent. Mayor Tracy Martinez, Deputy Mayor John W. Spelich and Councilmember Terry Gaasterland approved sending referrals to San Diego County District Attorney Summer Stephan and U.S. Attorney Adam Gordon.

The referrals were prompted by a letter signed "Debrah Barnes" raising concerns about campaign contributions and real estate connections linking Arabo, Seaside Ridge broker Brian Guiltinan and Bonta. The letter does not allege specific illegal conduct. The San Diego Union-Tribune reported that the newspaper was unable to independently verify Barnes' identity or residency.

According to campaign finance records cited in the referral, Arabo has made yearly maximum contributions to Bonta's campaign committee since August 2021, and Guiltinan has donated more than $18,000 to Bonta since 2022. The complaint notes Arabo purchased a Rancho Santa Fe home through Guiltinan, who also serves as advisor and broker for Seaside Ridge.

City Manager Ashley Jones said the city was not accusing anyone of wrongdoing and wanted to refer the resident's concerns to agencies equipped to investigate, according to Voice of San Diego.

Martinez said in an email after the vote that the action "was simply a referral of a concern raised by a member of the public to outside agencies for review and consideration, as the City of Del Mar is not an investigative agency."

Arabo denies wrongdoing

Arabo, a Governor-appointed member of the 22nd District Agricultural Association Board that oversees the Del Mar Fairgrounds, submitted a written denial to the council on July 31. He stated he had no private communications about Seaside Ridge, never discussed the project with Bonta or Guiltinan, and holds no financial interest in the development.

In his letter, Arabo denied requesting, encouraging or coordinating any action by Bonta's office regarding Seaside Ridge. He characterized the referral materials as a narrative built on unrelated lawful events and asked the council to consider the complete factual record before referring a Governor-appointed official to criminal authorities.

The city's referral letters allege Arabo "publicly and aggressively denounced" the city's proposal to develop affordable housing at the Fairgrounds. However, exhibits attached to those same referrals include transcripts of Arabo saying he hopes development happens on the fairgrounds site, according to city agenda documents.

Notably, the city did not send a referral to the Fair Political Practices Commission, which routinely handles non-criminal investigations into financial conflicts of interest by public officials.

Developer calls action 'outrageous'

Attorney Brooke Miller of Sheppard, Mullin, Richter & Hampton, representing Seaside Ridge developer Carol Lazier, submitted a letter characterizing the city's action as an attack on the reputation of individuals seeking to enforce housing laws. Miller wrote that the city appeared more interested in preventing legally mandated housing than in compliance with the law, and she requested the council cancel the meeting and retract its assertions. Miller also filed a California Public Records Act request for all communications between city officials and state officials relating to Seaside Ridge since October 2022.

Seaside Ridge is a proposed 259-unit multifamily project with 85 affordable units at 929 Border Avenue on Del Mar's north bluff. The application was submitted in October 2022, and the project is now in active litigation. Lazier has a pending petition in San Diego County Superior Court arguing the project should proceed under the state's Builder's Remedy provision, which allows developers to bypass local zoning when a city lacks a certified housing plan.

If the city loses the lawsuit, it faces at least $2.59 million in state penalties plus attorneys' fees, according to city agenda documents.

The dispute unfolds as Del Mar relies on a deal with the Fairgrounds to build 61 of 113 affordable housing units required under its state-mandated housing allocation, with a November 2026 deadline to secure a lease agreement with the fair board.

The next regular Del Mar City Council meeting is scheduled for Tuesday, Aug. 25. Residents can submit public comments through the city clerk's office or speak during the meeting's public comment period.