Oceanside may soon welcome a new residential community just off one of its busiest corridors. A proposal is currently under review to build 36 single-family homes on a 4-acre parcel at the northeast corner of Interstate 5 and State Route 78, just west of the Walmart shopping center.
Known as Lagoon Pacific, the development would include six affordable housing units, qualifying the project for state density bonus incentives. These incentives allow the builder to place homes closer to the street and build on a larger percentage of each lot than local zoning typically permits.
Project Overview
- Total Homes: 36 (including 6 affordable units)
- Lot Sizes: 1,955 to 3,134 square feet
- Home Sizes: 1,680 to 2,360 square feet
- Stories: Two to three
- Bedrooms: 4 per home
- Parking: Two-car garages and driveways, plus 18 guest spaces
- Access: Private street off Kelly Street
Community Response
The project has drawn mixed reactions. At two recent community meetings, dozens of residents voiced concerns over:
- Increased traffic and congestion near Kelly Street
- Fire evacuation safety
- Reduced property values
- Neighborhood compatibility
- Impacts to local infrastructure
Developer Steve Sheldon, who is based in Tustin, says the homes are designed to be compatible with existing neighborhoods, maintaining appropriate setbacks and providing ample parking and open space.
What’s Next?
The project is still under review by Oceanside city staff, and a Planning Commission date has not been set. Ultimately, the City Council will vote to approve or deny the Lagoon Pacific development.
This proposal highlights the ongoing balancing act between addressing California’s housing shortage and maintaining neighborhood character. State density laws are encouraging new developments near transit and jobs, but cities like Oceanside are tasked with ensuring that growth is managed thoughtfully.
Stay tuned for updates as the project moves through the planning process, and check the City of Oceanside’s website for future public hearing dates.
