OCEANSIDE — A City Council majority has delayed final approval of a major redevelopment project at the Oceanside Transit Center that would add 547 residential units, a boutique hotel and retail options, while improving public transit, including rerouting the existing bus system.
The council voted 3-2 during a special meeting on Oct. 7 to continue the project until Nov. 19, seeking clarification and potential changes from the developer, Toll Brothers Apartment Living.
If approved, the project would include:
• A new North County Transit District headquarters in a four-story, 59,156-square-foot office building, including a 1,692-square-foot Amtrak customer service center on the ground floor.
• Two five-story residential buildings totaling 547 apartment units and 790 parking spaces. Of those, 15% would be affordable, with 55 units set aside for low-income households and 27 for moderate-income households.
• New bus circulation and relocation of bus bays to the southwest corner of the site, shifting them from their current location at Seagaze Drive.
• A total of 1,768 public and private parking stalls, including a new above- and below-grade parking structure with 801 spaces, 611 of which would be public. The existing city-owned parking structure at Cleveland Street and Seagaze Drive would remain, as it falls outside the project boundary. Bicycle and electric vehicle parking are also planned.
• A central transit plaza designed for small events, art installations and performances, featuring green space, shade structures and seating.
• A 173,463-square-foot, 170-room boutique hotel with 12,806 square feet for retail and food and beverage tenants.
• An additional 29,196 square feet of commercial space.
An Oceanside Planning Commission majority approved the project in June.
While most comments expressed support for the redevelopment, several neighbors opposed plans to reroute bus service onto Missouri Street, instead preferring to maintain the current route on Seagaze Drive.
Kevin Ham, with the Oceanside Coastal Neighborhood Association, said the project would create safety and noise issues along Missouri and Michigan avenues due to their smaller size compared to Seagaze Drive and proximity to homes. He said the project also appears to overlook the city’s plans to redevelop Coast Highway and fails to consider future roundabouts.
Others voiced concerns about additional traffic on Tremont Street.
According to the North County Transit District, relocating the bus transfer station was the result of extensive analysis.
NCTD CEO Shawn Donaghy said buses currently struggle using Seagaze Drive because of pedestrians crossing and traffic from the nearby parking structure. Even without the project, the transfer station would still need to be rerouted, he noted.
Some opponents also raised concerns about pollution from buses affecting residential air quality. Donaghy explained that most of NCTD’s current bus fleet consists of zero-emission vehicles and will be completely zero-emission within a few years.
Supporters of the project emphasized the need for more housing near transit options as a way to help reduce citywide traffic congestion.
Mayor Esther Sanchez, Deputy Mayor Eric Joyce and Councilmember Jimmy Figueroa voted to delay approval until next month to allow the developer time to clarify and adjust certain components.
Sanchez said she wants bus circulation rerouted away from Missouri Avenue, noting the community’s long-standing opposition.
“I think it’s doable — we ought to be able to get some kind of condition that this will completely avoid Missouri,” she said. “I don’t know why they weren’t listened to before.”
Figueroa sought clarification on the number of prevailing-wage jobs that would be offered and on the project’s jobs-to-housing ratio.
Michael McCann, regional director of Toll Brothers, said that prevailing wages were guaranteed for the public improvement portions of the project, including the office building, parking garage, and transit facilities. Extending prevailing wages to private components, such as the residential units and hotel, would “kill the project” by adding about 25% in costs, he said.
Joyce also requested more information about the use of the public plaza and the inclusionary housing component.
The developer has proposed 15% affordable housing across both residential buildings, with 10% reserved for low-income and 5% for moderate-income households in each. Joyce objected to splitting the inclusionary component this way, saying “low income should be the floor.”
He noted that a low-income, one-bedroom apartment for two people would rent for $1,570 per month, while the same unit for a moderate-income household would cost $2,878 per month.
“That’s not accessible,” he said.
Figueroa agreed, saying there “is a big difference between moderate and low income.”
Joyce also criticized removing the project from the Downtown District, which exempts it from the district’s housing cap.
“It’s obviously part of the downtown — I’m frustrated by taking it out,” he said.
On Oct. 1, the City Council approved a 326-unit apartment project at 401 Mission Avenue, directly across Seagaze Drive from the Oceanside Transit Center. Several other high-density projects have been completed downtown, with more in development.
Joyce previously noted that the 401 Mission project brings downtown’s total to 5,144 housing units, nearing the district’s 5,500-unit cap.
Both the developer and NCTD representatives expressed frustration with the continuation.
McCann warned that the project might not return, especially if conditioned to change the bus routes.
“We’ve been at it for six years,” McCann said, noting that his company’s management has cut off all project spending until it can demonstrate a likelihood of approval.
Donaghy agreed to extend NCTD’s agreement with Toll Brothers until November but cautioned that this was the seventh extension.
“We’ve been waiting since 2008 to develop the land,” he said.
City Manager Jonathan Borrego also cautioned that changes to bus circulation may not be feasible by November.
In response, Sanchez said she would not vote in favor of the project if that were the case.
Later that night, Borrego said in an email that the timing of hotel construction would also be clarified during the continuance.
“We will use this time to provide additional information on these items and continue to discuss bus routing options with NCTD and the developer in hopes of coming up with a solution that alleviates the adjacent neighborhood’s concerns,” he told The Coast News.
Councilmembers Rick Robinson and Peter Weiss opposed the continuation and favored approving the project Tuesday night.
“I think this is a good project,” Weiss said. “Every project is going to have some issues. My biggest fear is if we do not approve and support this project, what happens after the governor signs SB 79? That would be a disaster.”
Passed by the Legislature last month, Senate Bill 79 aims to boost residential development near high-frequency public transit by overriding local zoning laws and requiring cities to allow taller, denser housing projects near train stations and major bus routes. The bill awaits Gov. Gavin Newsom’s approval.
Because the Oceanside Transit Center redevelopment project was delayed, the proposed 810 Mission Avenue mixed-use project — which includes 206 units, 31 reserved for low- and moderate-income households, five live-work units and ground-floor commercial space — was also postponed.
The developer of that project requested the delay since both are “tethered together.” NCTD plans to relocate its headquarters to the Oceanside Transit Center and redevelop the 810 Mission site into a mixed-use development.
