Oceanside residents fight plan to build single-family homes near I-5 and 78

Development's density, traffic would upset older Fire Mountain neighborhood, opponents say

A map of the Lagoon Pacific development proposed near the Interstate 5-Route 78 intersection in Oceanside. (Courtesy city of Oceanside)

By Phil Diehl | [email protected] | The San Diego Union-Tribune

UPDATED: May 27, 2025 at 10:19 AM PDT

A proposal to build 35 single-family homes on four vacant acres at the edge of Oceanside’s Fire Mountain faces opposition from residents of the older neighborhood.

The urban infill project next to a Walmart shopping center near Interstate 5 and state Route 78 is called Lagoon Pacific. It uses state housing laws that allow the developer to double the density on the property by including units reserved as affordable housing.

The Oceanside Planning Commission voted 6-1 last week to recommend the Oceanside City Council approve the project at a meeting later this year. Commissioner Kevin Dodds voted no, saying the additional traffic would be hazardous and that the project was “a square peg in a round hole.”

Other commissioners agreed the development may not be a good fit, but said it meets state housing guidelines. Sacramento encourages higher density to address the regional housing shortage and, because of that, the city must approve projects that meet state standards.

Three of the homes will be deed-restricted for 55 years to buyers who qualify as “very low income” and three others will be restricted for “moderate income” based on San Diego County’s median income.

As with many density bonus developments, long-time neighbors said it will bring an unsafe increase in traffic and spoil the character of their once-quiet community.

Resident Danny Powers said the project is one of several recent developments that have boosted traffic on Fire Mountain streets. Most of the homes there are single-family structures on lots averaging 10,000 square feet or more, and some of the streets have no sidewalks.

“It’s totally about money,” Powers said. “It does not consider … the value of the neighborhood. We need some commissioners with backbone who will say, ‘I’m sorry, this does not fit into this neighborhood.’ I plead with you. Help us.”

Another concern for several people was that the new residents would use their garages for storage instead of parking. They said that will force more cars onto Kelly and adjacent streets for parking where there’s already too little space.

Some of the project’s opponents shouted, spoke out of turn or interrupted others’ comments. At one point, commission Chair Tom Morrissey declared a five-minute recess to restore order.

Commissioner Tom Rosales said it was “not the first time” that the commission has reviewed a development “that’s not terribly popular with the community.”

However, state legislation supports higher densities, and, “We are very limited in our ability to kill a project.”

He encouraged anyone unhappy about the situation to contact elected state officials.

Along with their recommendation for approval, the commission agreed to ask the developer to continue working with the city on possible traffic-calming devices such as speed bumps that could be installed near the entrance. Also, they suggested creating a pedestrian walkway to the nearby Walmart shopping center.

David See, a representative of the developer Oceanside Community Partners LLC, said there was an informal pathway to the center, but a previous property owner had attempted to fence it off because of problems with the homeless.

The site is on the south side of Kelly Street between Hunsacker Street and Andy Lane. All of the homes will face a new private street with a single access point on Kelly. Sixteen of the 35 homes will be three stories tall. The rest will be two stories and built at a lower grade to preserve the neighbors’ existing views.

Lot sizes will range from 1,955 to 3,134 square feet. Home sizes will range from 1,794 to 2,360 square feet, each with four bedrooms, 2.5 to 3.5 bathrooms, and a two-car garage.

Originally Published: May 26, 2025 at 6:25 AM PDT

This story has been corrected to say that 16 of the 35 homes will be three stories tall and the rest will be two stories.