The agreement about One Paseo was announced just before the City Council met to either rescind its prior approval of the project or place the issue before voters. The deal was contingent on the council voting to rescind, which they did unanimously.
The large, mixed-use development was approved by the council in February over objections of residents and community organizations.
Donahue Schriber, an Orange County-based firm that owns the Del Mar Highlands Town Center across the street from the 23.6-acre lot eyed by developer Kilroy Realty, subsequently funded a successful referendum effort that forced today's vote.
Opponents contended that One Paseo would add traffic to an already congested area, and that the developer ignored community planning groups.
Kilroy Vice President Jamas Gwilliam said the design process for a new proposal was just starting, but it would stay within certain parameters called for in the deal, including cutting the average daily vehicle trips by half, limiting office buildings to no more than seven stories, reducing the overall "bulk and scale," and establishing 30-foot setbacks from major streets.
One Paseo will still have the planned 600-plus housing units, according to Kilroy.
"We believe this is a fair compromise," Gwilliam said.
City Council President Sherri Lightner, who represents the area and opposed the original plan, said she welcomes a "refined" proposal that fits those parameters.
"This would represent a significant collaboration between the community and the developer, and bring about the results everyone desires -- a mixed-use development that would benefit the community, Lightner said.
The City Council was supposed to decide the issue Monday, but postponed the item until today when it was learned that negotiations were underway.
City regulations will prohibit a similar plan from returning to the council for approval for another year. However, Kilroy said a new design will go through the community planning process, which could take that long, anyway.