17-Story Towers on Highway 68? What County Planners Say

A preliminary builder's remedy application proposes about 750 apartments in three 17-story buildings at the southwest corner of Highway 68 and Laureles Grade in Monterey County. It sounds alarming. County planners, however, are openly skeptical it has a viable future, and the reasons why tell you a lot about how this process actually works. If you own or are buying on the Highway 68 corridor, here is what the verified record shows, and what to watch next.

What exactly was filed at Highway 68 and Laureles Grade?

On September 20, 2026, a preliminary application was submitted for a large-scale development on property owned by the Diocese of Monterey at the southwest corner of Highway 68 and Laureles Grade, in Supervisor Kate Daniels' district. The applicant is Ben Eilenberg and associates, who declined to comment to KSBW.

According to Monterey County Weekly, the larger application covers three 17-story buildings of 500,000 square feet each, with 752 apartments, 98 of them affordable. KSBW describes the plan as about 1.5 million square feet with 1,200 underground parking spaces, and reports that planners say the developer is now trying to move forward with a scaled-down version of 200 units. Separately, a 200-unit application on the adjacent Laureles Grade parcel was marked voided on September 20, according to Monterey County Weekly.

The Diocese of Monterey has been clear about its role. In a statement dated October 9, 2026, it said the property is under contract for sale, that authorizing a preliminary application "did not constitute approval or endorsement," and that its role is seller, not developer. Escrow is scheduled to close at the end of October. If it does not close, the Diocese may extend the contract or walk away.

What is builder's remedy in California, and why does it apply here?

Builder's remedy is a provision of California housing law that applies to cities and counties that lack a state-approved housing element. When a jurisdiction is out of compliance, developers can use it to bypass local zoning codes and general plan requirements, and it limits the jurisdiction's ability to deny certain projects.

Monterey County is currently among the jurisdictions exposed to builder's remedy. Its housing element was originally due in December 2023 and has not yet received state approval. That gap in compliance is the legal opening this filing used. A preliminary application does not mean a project is approved, entitled, or ready to move forward. It means the clock on a review period starts once fees are paid and the county formally accepts the application.

Does Monterey County have an approved housing element?

Not yet, but that is actively being addressed. On October 14, 2026, the Monterey County Planning Commission approved the overdue housing element and recommended rezoning five opportunity sites. The county is required to plan for more than 3,300 new units by 2031.

The housing element now goes to the Board of Supervisors on November 3, 2026. If the Board approves it and the state subsequently certifies it, Monterey County's builder's remedy exposure would end. As KSBW reported, county leaders hope the plan gets them out from under builder's remedy, and Monterey County Weekly notes that final state approval would eliminate it.

Can the county deny a builder's remedy project, and where does this one stand?

County planners have not formally accepted the Highway 68 application because the fees have not been paid. Monterey County Weekly reported the county billed more than $61,000 in application fees. As of the reporting, the developer had paid $500 in March. Until those fees are paid, the formal 30-day review period does not begin.

Beyond the fee issue, county officials say the properties have no water or sewer service, and that traffic concerns have not been addressed. Craig Spencer, director of the Monterey County Department of Housing and Community Development, told KSBW: "I don't see it actually having a viable future, so I want to make sure that there isn't too much alarm and panic over what has been submitted and where it stands today."

That quote matters. It is the county's own housing director, not a neighbor or critic, saying this project is unlikely to move forward as filed.

Will the 17-story towers on Highway 68 be built?

Based on the verified record as of late October 2026, county planners doubt it, and here is why. The application has not been formally accepted. Fees remain largely unpaid. The site has no existing water or sewer service. And the land sale itself has not closed yet. Spencer's public statement is about as direct as a planning director gets.

None of that means the issue disappears immediately. A related filing in Carmel Valley Village, a 90-unit builder's remedy project on the airfield refiled by a separate developer on September 29, 2026, is a reminder that builder's remedy activity is real across the county. But a filing is not a building.

How does the housing element vote on November 3 affect this?

Builder's remedy exposure exists precisely because Monterey County lacks a state-certified housing element. If the Board of Supervisors approves the plan on November 3 and the state certifies it, that legal window closes. New builder's remedy applications would no longer carry the same weight, and the county would regain more control over how and where new housing is reviewed.

That does not mean every local planning debate ends. It means the specific legal lever that made a 17-story tower filing on Highway 68 theoretically possible would no longer be available to applicants in the same way.

November 3 is the date worth watching if you live, own, or are buying anywhere on this corridor.

FAQ

Is the Highway 68 tower project approved?

No. It is a preliminary application. County planners have not formally accepted it because application fees have not been paid.

How many apartments are proposed?

The larger filing proposes about 750 apartments. Monterey County Weekly reported 752 total units, including 98 affordable, across three buildings up to 17 stories tall.

Who owns the land?

The Diocese of Monterey owns the property and says it is under contract for sale. The Diocese has stated it is the seller, not the developer, and that permitting the preliminary application was not an approval or endorsement of the project.

What are the main reasons county planners doubt the project?

County officials have cited unpaid application fees, no water or sewer service on the property, and unresolved traffic concerns. The county's housing director publicly said he does not see it having a viable future.

Should buyers avoid purchasing on Highway 68 because of this filing?

The verified facts show a preliminary filing, not an approved project. Buyers should check current county planning records for any property they are considering, ask their agent about disclosure obligations, and understand that a filing at this stage is not the same as an entitled development.

Do sellers on Highway 68 have to disclose this filing?

California disclosure law is fact-specific. Sellers and their agents should consult with a real estate attorney or their broker about what is required. When in doubt, disclosing known material facts is the standard of practice.

If you have questions about what this means for a home you own or are considering on the Highway 68 corridor, I am happy to talk through it with you directly.

Sirrom Alizem, REALTOR
eXp Realty Nor Cal Inc
DRE #02137532
(650) 695-1919
sirrom@realtywithsirrom.com
www.realtywithsirrom.com

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