VISTA — The owners of Vista’s iconic Pepper Tree Frosty are partnering with developer Tideline Partners to create a 109-unit mixed-use project on their property at South Santa Fe Avenue and Eucalyptus Avenue.
The project will replace all the current buildings on the 1.5-acre site known as Peppertree Corner — including the frosty business, Danny’s Donuts, Vista Flower Shop, Salon Chic, and a home goods store — with a five-story building featuring one story of commercial space on the first floor and four stories of residential space.
Most of the 109 housing units will be studios and one-bedroom apartments.
Members of the Villaseñor family, who have operated the Pepper Tree Frosty for over 60 years, said the beloved business will return as one of the commercial tenants in the new development.
“We are partners in this project, and we will remain owners,” said Joe Villaseñor, the son of current Pepper Tree owners Danny and Linda. “We aren’t going anywhere, we aren’t selling anything, and we aren’t being forced to do anything … We have been heavily involved in every step of this process. We have invested a lot of time and resources, and we will continue to do that.”
The Vista Planning Commission provided positive feedback for the project at an early design review on Tuesday. Further hearings will be held before the project can proceed.
“I think this partnership is amazing. You have a really talented group, and you guys have thought really deeply about what it means to be in this spot. It’s a beautiful example of mixed-use space,” said Commissioner Clay McCarthy.
Danny Villaseñor said he and Linda are ready to take a step back from the business and leave it in the hands of their adult children, who can continue the legacy.
The restaurant first opened as a Tastee-Freez in 1953 and was purchased by Danny’s parents, Chuy and Velia, in 1959. Danny and Linda took over in 1984 and have remained at the helm ever since.
“We’re very proud of our community, and how they’ve been very supportive of us over the years,” said Danny Villaseñor. “Through all these decades, we’ve been part of the historic nature of Vista.”
The family’s ice cream legacy is already expanding. Last year, Danny’s and Linda’s son, Richard Villaseñor, and his wife, Kristen, opened a spin-off of the Pepper Tree in Solana Beach called Solana Frosty, which has seen great success.
Richard and Kristen, as well as other members of the Villaseñor family, have also been involved in plans for the Vista project and plan to be involved when the Pepper Tree Frosty reopens.
“They’re gonna put their spin on it. It’s gonna be Pepper Tree 2.0,” Danny Villaseñor said.
Tideline has brought forward other housing projects in the downtown area, including the 42-unit Found Lofts project on South Santa Fe Avenue and the 183-unit Kensho development off Guajome Street, which was approved in late 2023.
Lev Gershman, founder and managing partner of Tideline, said he has been working on this project with the Villaseñors for several years. Updating this lot, which is a focal point of the downtown area, will align with the vision of an Arts and Culture District as outlined in the city’s Downtown Specific Plan, he said.
“It was so important to bring this property to a higher use to meet the downtown vision,” said Gershman. “We feel a great sense of responsibility. Pepper Tree is a special place.”
One of the more challenging aspects was addressing the site’s groundwater issues, which were essential to pursuing any development.
Working with the Villaseñors, the city, and hydrologist Tory Walker for around two years, Gershman said they were able to update FEMA flood maps to move the property out of the flood zone, along with most of the downtown.
“It would have been a lot easier for the Villaseñors to sell the property and wash their hands. Instead, over the last two years, we’ve worked together to get the property out of the flood zone, and by doing that, got a lot of other properties out of the flood zone by adjusting the FEMA map,” Gershman said.
The project will also cap a portion of the Rancho Buena Vista Creek that runs in a channel through the property, and create a small public plaza. They also plan to maintain the historic wishing well and recreate the old creek pathway that once ran along the edge of the site.
During the Planning Commission meeting, other commissioners expressed some concern about there being enough parking.
While a project of this size would normally require 155 spaces, Tideline will offer 100 spaces, which is permitted under the density bonus law due to the inclusion of low-income units and the project’s proximity to public transit.
Several residents also spoke at the meeting, mostly in support of the project. When news of the development first hit social media, many were concerned about the fate of the Villaseñors and the Pepper Tree.
Hearing that the family was involved in the development soothed some of those anxieties.
“I understand the deep connection that we all share with Pepper Tree, which has been a cherished part of our neighborhood for decades. The upcoming development is not affront to our memories,” said resident Jacob Aldridge.
Rachel Beld, president and CEO of the Vista Chamber of Commerce, also commended the Villaseñors for their continued involvement in the project. She also stated that the project will help address the need for housing in the downtown area.
“As we all know, Vista needs more housing. Apartment complexes across the city have lengthy waitlists, especially for studios and one bedroom apartments. This project helps meet that need in a thoughtful and well-located way,” Beld said.
