Overcame Three Major Obstacles to Secure Approval for a Process 2 Neighborhood Use Permit (NUP) in San Diego
A Dogtopia franchise planned to open a dog daycare facility in San Diego and initially received guidance from City counter staff that only a tenant improvement permit would be required.
Based on that information, the client retained an architect and contractor to prepare permit plans. However, when the project was submitted for plan check, the City determined that the site was located within the Prime Industrial Land Overlay, creating a major entitlement obstacle because dog-related facilities were believed to be restricted.
At that stage, Strom Permit was brought in to identify a path to approval and manage the discretionary permitting process.
Strom Permit functions as the technical extension of the project owner—protecting project feasibility, resolving entitlement barriers, and navigating California’s most complex discretionary approval challenges with confidence.
Dog Day Care
Facility
San Diego,
California
Prime Industrial Land Overlay, deed restriction, change-of-use fee
Neighborhood Use Permit (NUP) – Process 2
Fee reduced from $340,000 to $40,000
NUP approved and business opened
Strom Permit managed the discretionary approval strategy required for the facility, including:
A discretionary Process 2 permit reviewed by planning staff that authorizes specific land uses subject to zoning and operational requirements.
Independent zoning verification to determine whether a dog daycare facility could legally operate within the Prime Industrial Land Overlay.
Preparation and presentation of project information to the local community planning group as part of the discretionary approval process.
Resolution of deed restriction concerns raised by Miramar Marine Air Base through technical land use interpretation and agency coordination.
The project faced four major approval obstacles during discretionary review:
1. Incorrect Planning Counter Guidance
The client was originally told only a tenant improvement permit was needed. After plans were prepared, the City determined discretionary approval would instead be required.
2. Prime Industrial Land Overlay Restrictions
Because the site was within the Prime Industrial Land overlay, Strom Permit conducted zoning research and confirmed dog facilities could proceed through a Neighborhood Use Permit.
3. Miramar Deed Restriction Concerns
After community approval, Miramar Marine Air Base raised concerns over deed restrictions prohibiting animal husbandry. Strom Permit identified a land use distinction separating dog day care from animal husbandry, allowing the project to continue.
4. $340,000 Change-of-Use Fee
The City imposed a change-of-use fee that threatened project feasibility. Through strategic outreach and advocacy, Strom Permit helped reduce the fee to approximately $40,000.
We managed the approval process through a structured entitlement strategy:
Conducted zoning research and coordinated directly with senior planning staff to confirm project requirements rather than relying solely on preliminary counter guidance.
Prepared and submitted the required Neighborhood Use Permit application to establish a viable path to approval.
Participated in presenting the project to the local community planning group, where the proposal received unanimous approval from its 20-member board.
Researched Miramar Marine Air Base land use requirements and established an alternative interpretation distinguishing dog daycare operations from prohibited animal husbandry uses.
Coordinated outreach to the Mayor’s Office, Development Services leadership, local City Council office, and local media to challenge the project’s $340,000 change-of-use fee.
As a result of these efforts, the City reduced the required fee from $340,000 to $40,000, an approximately 91% reduction, making the project financially viable.
Speak with a permitting expert who acts as your technical representative from day one.
The client successfully moved from a stalled approval process to an operating business despite multiple entitlement and financial obstacles.
According to Brian Crepeau, Vice President Management Division at Pacific Coast Commercial Asset Management, Strom Permit’s persistence and understanding of municipal approvals helped navigate a situation that initially appeared financially and procedurally impossible.
Brian Crepeau – Vice President Management Division at Pacific Coast Commercial Asset Management
”Just when you think you have seen it all along comes a real estate lease transaction that tops them all. This transaction required the prospective tenant to obtain a NUP (Neighborhood Use Permit) as a condition for locating their business in this area of San Diego. The feedback from the city was that this would be approved after all of the necessary documents were submitted for review. The missing piece of this puzzle was that after review the cost of getting the NUP was over $300,000. This was a small business entering into their first commercial lease and business venture. For most people faced with a situation like this “trying to fight city hall or change a city hall decision” the outlook would be bleak. However, this group found Terry Strom. Terry through tireless efforts worked through the maze of requirements and eventually presented a case to the city where not only was the NUP approved but the fees were reduced to $40,000. In addition to this type of work Terry has helped me, my team members and clients with guidance and evaluation on difficult deals where how you approach a municipality regarding zoning and permitting are critical to the success of the transaction. I highly recommend Terry for any and all issues that require additional city approvals such as CUP’s, NUP’s, permitting issues, entitlements issues etc.”
On this project, we went beyond standard permitting services by:
This level of advocacy, technical problem solving, and owner-side representation is rarely provided by permitting consultants, but proved critical to securing project approval.
