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POWAY, CA-The San Diego City Council Tuesday approved a project on former General Dynamics Corp. property, calling for apartment units and houses on an undeveloped part of the city’s northeastern border.

The 2,658-acre Rancho Encantada will include 828 single-family houses, 106 multifamily units, two parks and land for an elementary school. McMillin Land Development will pay the city $2.2 million for improvements to Mission Trails Regional Park.

McMillin also will contribute $3 million toward improvements to Interstate 15 and $750,000 for improvements to Spring Canyon Road. Poway officials turned up at the meeting to oppose the Rancho Encantada project, saying it will cause traffic gridlock in their city.

The project is about two miles east of Interstate 15, between Poway, the Miramar Marine Corps Air Station on the south, the communities of Scripps Miramar Ranch and Miramar Ranch North on the west and Goodan Ranch and the Sycamore Canyon Open Space Preserve on the east.

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