Mixed-use makeover hits roadblock at downtown Oceanside centerpiece

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Mixed-use makeover hits roadblock at downtown Oceanside centerpiece
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City Council says developer can do better and agrees to delay a decision for eight weeks.

A major makeover proposed for Oceanside’s downtown centerpiece hit a roadblock Wednesday when the Oceanside City Council postponed a decision for eight weeks to avoid an apparent denial of the project.

The seven-story, 332-apartment development with two restaurants, retail shops and an outdoor public plaza would replace an aging 16-screen Regal Cinema and a lineup of small shops in a complex at the corner of Mission Avenue and North Coast Highway. Yet three of the five council members sided with residents who said the proposed mixed-use building is not right for the 2.72-acre site. “I think the developer can do much better,” said Mayor Esther Sanchez, focusing on the public plaza in the plan. “It’s … not like the open area we have today. We don’t have any public art in the project, and that could do something to show a sense of place. It just feels very cavernous.” As the council’s position became clear, the developer asked for time to modify plans for the plaza at the front of the building. In response, the council voted unanimously to continue the matter to its Oct. 1 meeting. “This project is not ready,” said Councilmember Eric Joyce. “I do wish we had gone with a more modest one that fits with downtown. This is a cultural centerpiece of downtown.” The center, known as Ocean Place, was approved in 1999 and opened in 2001. At the time it was considered the keystone in Oceanside’s downtown renaissance, part of an effort to bring more people and commercial activity to the area. It was one of several downtown blocks the city purchased and cleared for redevelopment. However, the center has been struggling in recent years and is in “a state of decline,” said Manuel Baeza, the city’s principal planner. Attendance at movie theaters nationwide dropped dramatically with the COVID pandemic that began in 2020 and, facing a steady increase in online entertainment and retail activity, has never fully recovered. Four of the retail spaces in the complex, including the former Breakwater Brewing Company, are vacant. There is no on-site parking, and most of the nearby lots formerly used for parking have been covered by recent multi-story development. A four-level parking structure with 591 spaces and an entrance on Seagaze Drive is proposed as part of the new building. The residential portion of the building would include the minimum requirement of 34 apartments, 10% of the total, reserved for low-income tenants. Oceanside increased its minimum affordable housing requirement to 15% after the project’s application was submitted in 2023. One of the restaurants would occupy the corner of Mission and North Coast Highway, and the other would face Mission in the center of the block. The existing complex includes a public plaza outside the main entrance to the theaters. The area has become a popular gathering spot, and since 2008 it has been home to community events including the city’s annual Christmas tree and its lighting ceremony. The plaza must stay open to the public under an easement tied to the property through the city’s deal with the original developer. The proposed agreement with the new developer, J.H. Real Estate Partners, would add 30 years to the easement that now expires in 2034, extending it to 2064. J.H. Real Estate Partners has owned the property for about 10 years. The company spent more than $500,000 in 2018 to renovate the plaza by adding a pergola, improved seating and other changes, said Ernie Rivas the group’s representative. The new plaza will be slightly larger with a more open design to make the space more welcoming and usable, Rivas said.Residents who spoke at the meeting raised other issues such as traffic, density and landscaping, but City Council seemed most interested in the design of the plaza. “The open plaza … has become iconic with Oceanside,” said Councilmember Jimmy Figueroa. “It is a place where our community does convene. You see people there all the time.”“It’s actually more usable space than what they have now,” Robinson said. “I have been to the theater with my grandkids recently,” he said. “I have you tell you that when you walk in and there are six people there, that’s not viable.”Audit spurred by students’ investigation finds financial mismanagement by San Dieguito high school foundationsPour House owners open new restaurant in historic Oceanside homePadres star Fernando Tatis Jr. taking what pitchers give himRyan O’Hearn, Jose Iglesias key Padres rally in ninth; bullpen comes up big in win over D-backsPadres pregame: The fates of Martin Maldonado, Tyler Wade; Fernando Tatis Jr. sits

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