AFTER YEARS of environmental review, redesign and debate over the significance of the old bank building at Dolores and Seventh, developer John Mandurrago learned Wednesday he can tear it down to build five market-rate condos, two low-cost apartments, 4,550 square feet of commercial space and a two-level underground parking garage. Compelled by state laws that trump local rules when projects contain affordable housing, the Carmel Planning Commission unanimously OK’d the permits and environmental impact report for Mandurrago’s Plaza del Mar.

According to planning consultant Brian Roseth, the California Legislature has preempted local zoning codes and general plans to accommodate projects containing any low-income housing.

The bank building, which now houses Homescapes Carmel, was designed in a modern style by Walter Burde and built in 1972. A group of local architects asked the city to forbid its demolition, calling the building “unique and outstanding.”

“I certainly hate to see this project go forward,” commented former councilwoman Barbara Livingston.

While the project’s environmental analysis identified the loss of “great architecture” as a negative impact of Mandurrago’s plan, affordable housing laws make it impossible for the city to deny the project on that basis, Roseth said.

“The city does have the ability to make design changes and modifications that are relatively minor, but ultimately the city is compelled to approve it,” he said.

At the Aug. 13 meeting, city attorney Don Freeman backed Roseth’s interpretation of the state law.

“The state has determined affordable housing is a very high priority for the State of California,” he said. “They want to make it economically viable for developers to come forward and start putting forth affordable units.”

Commissioner Robin Wilson described housing for very low-, low- and moderate-income earners as “the golden key,” in gaining approval.

“It unlocks everything if it’s not a violation to health and safety,” he said.

Resident Monte Miller encouraged commissioners to exert their power wherever they could, even if they had to approve Mandurrago’s application.

“If they want to destroy the building the citizens of Carmel want to save, I’m hoping you can put their feet to the fire in any way possible,” he said.

Miller also wondered if the city council, which has two new members since the building’s historical significance was determined, “would declare the building historic the way we wanted them to.”

But the council’s 3-2 vote two years ago to declare the former bank not historic stands, Freeman said. It was not challenged in court and is therefore final.

Roberta Miller, president of the Carmel Residents Association, said, “I hope you can vote for preserving and protecting Carmel’s architectural diversity.”

Financially viable?

Architect Brian Congleton, who for the past four years has spoken in defense of protecting the structure, said the city had not taken a strong stand to save it and that no compromise had been reached between Mandurrago and those who wanted to preserve it.

He ruefully acknowledged attorney Anthony Lombardo’s skills in rooting out the California law that would benefit his client and thanked Mandurrago for maintaining his sense of humor during the years of hearings, debates and setbacks.

“It’s going to be very sad to see this building come down,” he commented.

Chairman Bill Strid said the commission has been striving for plans that Mandurrago could afford to build but that would also save the building.

“The applicant has presented some financial data that indicate this project, and this project alone, would be the only one that could be constructed and be financially successful,” he said, observing that the economic aspects of the project appear to be more important than anything else. “If there was a project that provided the housing that also kept the building, this would meet the intent of the [state] statute.”

But since Mandurrago already determined there’s no way he can achieve both, the commission voted on his proposal, unanimously certifying the environmental impact report and approving the permits.