A plan by the developer of The Outpost mixed-use project to increase the number of homes to a total of 72 was approved in a 4-1 vote by the Poway City Council Tuesday night.

But that was after a tongue-lashing from City Council members about the delays in the much-anticipated project and a bankruptcy filing in September.

The Outpost, which broke ground on Poway Road in August 2018, was supposed to set the tone for the area and serve as an example, said Councilmember Caylin Frank.

“This has been impacting our community negatively,” Frank said. “We want you to be a good neighbor.”

Councilmember Dave Grosch, who voted against the plans, said he needed more time to think about the changes. He asked developers for a schedule, which he could post online to keep them accountable.

“We’ve been taking crap for two years — at least two years,” he said.

The revised plans for the three-story project include a reduction of 24,342 square feet in order to accommodate the new housing — an addition of 19 homes for a total of 72 residential units.

The project will look the same as what the City Council previously approved, according to a staff report. Nine of the units will be affordable to low-income residents, the report said.

The original plan approved by the city called for 53 residential units, a food hall, a fitness center and two stories of underground parking. Under that plan, residential would have accounted for 60 percent of the total 100,000 square feet, and commercial uses would have occupied 40 percent.

Under the revised plans, the food hall will be reduced nearly in half and will now be shared use outdoor space for food hall and residential units. The space for the fitness center will instead be used for 13 more living units.

The project, once touted as a model for the development of a pedestrian-oriented district along Poway Road, is about 25 percent completed, said an attorney for the developer. The underground parking and foundation are 80 percent completed.

Howard Blackson, who spoke on behalf of the developers, said he was sorry for the inconveniences that have come with the project, including closed sidewalks.

“We sincerely apologize,” he told the council. “We are moving forward. It’s been a difficult time for everyone.”

Blackson said the project should be completed by summer 2023.

Mayor Steve Vaus said he has been a cheerleader for the project from the start.

“I was happy to champion it here,” Vaus said, adding the new plan isn’t nearly as exciting to him. “It’s been an embarrassment to have a hole in the ground.”

The 1.58-acre venture is on the south side of Community Road, east of Bowron Road.

The proposed changes include two four-bedroom townhomes, four three-bedroom lofts, 12 two-bedroom residences, 29 three-bedroom homes, one four-bedroom, three two-bedroom mezzanines, 17 four-bedroom mezzanines and four four-bedroom mezzanines flex.

Revised plans include converting 6,345 square feet of commercial office space on the second floor to seven residential units.

Blackson said the project will move forward to a successful completion despite the Chapter 11 bankruptcy filing. Poway Property LP, the owner-developer of the project, filed for bankruptcy protection on Sept. 13, listing debts of $22.9 million owed to 11 creditors, and liabilities to a 12th creditor undetermined, according to the bankruptcy filing. The largest amount, $21 million, is owed to UC Poway Post Holder, LLC.

The developer listed assets of $50,000 or less, according to the bankruptcy filing.

The project, the first of its kind to be approved under an update to the Poway Road Specific Plan, has suffered some setbacks since construction began. In 2019, the developer announced completion would be delayed by one year due to complications in removing a larger-than-anticipated amount of groundwater during excavation.

In July of this year, a sub-contractor on the project, PERI Formwork Systems Inc. filed a lawsuit against Poway Property LP, Capexco and the general contractor on the project, K.D Stahl Construction Group Inc., alleging it had not been paid for concrete formwork and shoring materials it had provided for the project.

Also at Tuesday’s meeting, Danny Sherlock, president and CEO of Boys & Girls Club of Greater San Diego, told councilmembers the developers rented space at Community Park in order to store equipment. Sherlock said they still owe money for the use of the property.

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Angela Brandt is a staff writer for the Poway News Chieftain and Rancho Bernardo News Journal.

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