A San Diego developer has proposed a mixed-use project with 218 apartments and 13,800 square feet of shops and restaurants for the Carlsbad Village Plaza anchored by a Smart & Final grocery just west of Interstate 5.

The retail businesses will be in two single-story buildings facing Carlsbad Village Drive. The apartments, including 22 reserved for very low income tenants, will be in two five-story buildings behind the shops and facing Oak Avenue, according to an application filed June 13 with the Carlsbad Planning Division.

“Our team has worked hard to design a thoughtful project that delivers needed affordable housing and creates opportunities for local retail businesses, including a neighborhood market,” said Jonathan Frankel of the Atlantis Group, who represents the property owner, in an email. “This property will serve as a model for sustainable, transit-oriented development, and we look forward to continued dialogue with the city and Carlsbad community,” he said.

The 4.12-acre site is on a Breeze bus route and about half a mile from the Carlsbad Village Coaster Station, which makes it a transit-oriented development. The Coaster provides commuter train service to eight stations from San Diego to Oceanside.

The project includes a five-story parking structure and at-grade parking with a total of 350 spaces. Daily traffic generated by the project is expected to be a 65 percent reduction from the existing uses on the site or about 4,500 fewer daily vehicles, Frankel said.

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