OCEANSIDE — A recently approved infill housing project will bring 35 single-family detached homes to a 4-acre site in the “rural-ish” Fire Mountain neighborhood, despite opposition from many residents over potential increased traffic in the area.
The proposed Kelly Street Lagoon Pacific project received a 6-1 vote of approval from the Oceanside Planning Commission on May 19.
The project site is a vacant parcel on the south side of Kelly Street, between Hunsaker Street and Andy Lane, bordered by single-family homes to the north, the North Coast United Methodist Church to the west, state Route 78 to the south, and the Pacific Coast Plaza commercial center to the east.
Under local zoning laws, the site, located within the Fire Mountain planning area, could accommodate up to 18 homes, but the developer, Oceanside Community Partners LLC, is using the state’s density bonus law to nearly double that number by reserving six homes as deed-restricted affordable units — three for very low-income and three for moderate-income households.
The law also allows the developer to request unlimited waivers of construction standards, including reduced lot sizes, setbacks and usable open space.
Each home is planned to have four bedrooms, ranging from 1,794 to 2,360 square feet, with 2.5 to 3.5 bathrooms, two-car garages, driveways, and 18 guest parking spaces, averaging 4.17 parking spaces per unit. Sixteen homes will be three stories tall, while the remainder will be two stories tall.
Access to the site will come from Kelly Street via a new 28-foot-wide private driveway. Developer Steve Sheldon has also proposed a pedestrian entryway with a decorative arbor, upgraded landscaping featuring new trees, and a walking path through the development that connects to a shared open space area for the neighborhood.



Originally proposed as a 36-unit project, the plan was reduced by one lot after neighborhood feedback, with the removed lot added to the open space.
Despite these changes, a dozen residents spoke against the project at the commission meeting.
Andy Lane resident Bob Ashton said that while he supports reasonable city growth, he believes the project’s density is “irresponsible by the developer and the city to allow … in our rural parts of the city.”
Ashton argued the project would create a specific adverse impact by adding at least 70 cars to already busy Cassidy Street, increasing the risk of severe vehicle accidents.
“The increased traffic on our local streets will unquestionably cause a significant increase in the probability of vehicle incidents with a high severity outcome, which could result in injury and potentially death,” Ashton said. “We currently enjoy a very walkable and ridable neighborhood — I walk my dog every day, I walk my grandkids — with this increased density as designed, and increased automobile traffic on our road, it will have a specific adverse impact.”
Ashton also urged the city to challenge what he called the state’s “density bonus equals open door zoning exemption policies.”
Planning Commissioner Tom Rosales noted the city has limited ability to deny density bonus projects under state law, which requires cities to approve them unless they result in a specific adverse impact, affect historical resources, or violate state or federal law.
Ultimately, the commission approved the project with a recommendation to further study local traffic impacts and consider additional calming measures such as solar speed signs or speed bumps.
Commissioner Louise Balma also suggested the developer add a pedestrian path connecting the project to a nearby shopping center.
“If I lived there, I would want to walk there rather than get in my car and drive around,” she said.
Commissioner Kevin Dodds cast the lone dissenting vote, citing concerns about neighborhood safety due to the lack of sidewalks.
“I’m concerned about the safety of walking on the roads. I’m stuck there, I’m sorry. I’m just stuck,” Dodds said.
According to City Planner Sergio Madera, under city law, the homes cannot operate as non-hosted short-term rentals; however, each lot may be built with up to two accessory dwelling units.