Caruso Affiliated's plans to build a $10.5M luxury shopping center on the south shore of the Agua Hedionda Lagoon failed to gain enough voter support in the special election a week ago to move forward.

The unofficial results released by the San Diego County registrar yesterday were 20,362 No (52%) to 18,806 Yes (48%), according to the San Diego Union-Tribune.

Caruso Affiliated founder/CEO Rick Caruso congratulated his opponents on their hard-fought success. “This was a close election with a historically strong voter turnout on both sides,” he says. “Both sides share a common love for their Carlsbad community, a sentiment we share. While we had hoped for a different outcome, we are proud of our effort, our plan, the integrity of our message.”

Caruso spent $10M promoting his plan, while opponents raised $100k in donations ($75k of that came from retail competitor Westfield Corp). Caruso still could apply for permits to get the project approved through the city’s conventional planning process, which the developer had hoped to avoid by gathering signatures for a citizens’ initiative.

The project calls for an outdoor retail promenade anchored by Nordstorm on 26 acres of a 200-acre site, leaving the remaining open space for community recreational uses. [SDUT]