OCEANSIDE — After postponing its final decision over the summer, the City Council has unanimously approved a revised version of the controversial 401 Mission Avenue project, which will replace downtown’s Regal Theater.
The project, previously presented to the council on Aug. 6, initially proposed 332 residential units and 18,682 square feet of commercial space on a 2.72-acre site along Mission Avenue in the downtown district. The original plan would have replaced the existing 15,462-square-foot public plaza in front of the theater with two smaller outdoor plazas totaling 9,449 square feet.
After hearing pushback from residents, the developer requested a continuance to address concerns. The council postponed its final decision until Oct. 1.
The developer returned with several changes, including reducing the total number of units to 326 and expanding the commercial retail space to 26,490 square feet. The revised plan also includes a new 15,439-square-foot public plaza.
Like the existing plaza, the new one will face Mission Avenue, with future retail spaces along North Coast Highway and Mission Avenue on the south side of the plaza.
The project’s previous central tower design was scrapped and replaced with two towers framing the plaza on either side.
“It’s really opened up from before,” said city planner Manuel Baeza, who presented the project to the council.
The plaza will be set back 60 feet and span 250 feet wide, featuring three masonry pedestals for public art, benches, lounge seating, and tables with large umbrellas. Palm trees have been removed from the design, replaced with canopy and accent trees.
Ernie Rivas, vice president and director of acquisitions and development for JH Real Estate, said he is working with Oceanside Public Library Director CJ DiMento to decide whether the artwork will be temporary or permanent. The two also discussed featuring cultural art representing the region’s Indigenous people, the local Samoan community, and the military.
Rivas said he is also collaborating with Kristi Hawthorne of the Oceanside Historical Society and Leslee Gaul of Visit Oceanside to create QR codes that link directly to their websites, which will be integrated into the plaza’s art and events.
Because the number of residential units changed, several other project elements were adjusted as well:
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Affordable units decreased from 34 to 33
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One-bedroom units increased from 165 to 176, while the 15 studio units remained
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Two-bedroom units decreased from 113 to 100
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Three-bedroom units decreased from 39 to 35
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Dwelling units per acre dropped from 122 to 120
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Parking spaces decreased from 591 to 554, still above the required 545
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Common open space increased from 19,592 to 19,651 square feet
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Private open space increased from 21,615 to 21,662 square feet
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Open space per unit grew from 123.8 to 126.7 square feet
The leasing office was relocated from the first floor to the second, accessible through the parking structure. Entrances to the parking structure remain at the rear of the site, facing Seagaze Drive.
When asked whether the developer considered retaining a cinema, Rivas explained that the property lacks the parking capacity typical for a movie theater due to nearby development over the years. The COVID-19 pandemic further hurt the theater’s business, and Regal Cinemas’ parent company, Cineworld Group, filed for bankruptcy in 2022.
“Even before that, they were trying to downsize and make the theater smaller,” Rivas said.
Rivas said the developer explored other potential theater operators but found no interested parties, citing easier access points at other regional theaters.
He said the existing theater is “on life support.”
“We’ve kept it open,” he said.
The developer also modified the building design to be more “bird friendly,” as previously requested, by eliminating extensive glass along front-facing balconies.
City Council members generally praised the revised project.
“Those two (projects) don’t even look like they were in the same room. It’s just so fantastic,” said Mayor Esther Sanchez. “Great change, definitely iconic, definitely a destination.”
Deputy Mayor Eric Joyce raised concerns about a proposed amendment to the public plaza easement. The plaza will remain open to the public until 2064, but the amendment clarifies the developer’s right to use the area for special events and pedestrian passage. Joyce worried this could restrict public access, but Rivas assured the council the plaza would continue to operate as it has for years.
