OCEANSIDE — A controversial mixed-use development project on the northeast corner of Seagaze Drive and North Nevada Street achieved its final step on Wednesday.
The City Council voted 4-1 to approve the financing plan, which includes a $65 million bond through the California Municipal Finance Authority for the eight-story project. However, the city is not responsible for paying back the bonds as those are the responsibility of the developer, Manhattan, Kan.-based Elsey Partners.
Mayor Esther Sanchez voted no on the project and ripped the process saying it was a bait-and-switch from its previous proposal. The developer applied and received $48.7 million from the California Affordable Housing and Sustainable Communities Grant Program in August 2024, which required the project be 100% affordable.
However, Sanchez, and another source, said the city was never notified of the grant application or change to a 100% affordable project. She said several reporters reached out for comment about the grant, but Sanchez said she had no idea what they were asking.
“This is a first, a single-residence occupancy in one building and no mix of family units does bother me a bit,” Sanchez added. “Apparently, that application went forward without any communications to the city. We were completely left out of the loop. I wish we could’ve had a better project.”
