DATE: June 3, 2026
TO: Honorable Mayor and City Councilmembers and Chairperson and Members of the Community Development Commission
FROM: Development Services Department
TITLE: ADOPTION OF AMENDED TEXT TO ARTICLE 12 OF THE DOWNTOWN ZONING ORDINANCE ADDRESSING DOWNTOWN DENSITY AMENDMENTS PER LCPA22-00002 TO INCLUDE MODIFICATIONS SUGGESTED BY THE CALIFORNIA COASTAL COMMISSION
RECOMMENDATION
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Staff recommends that the City Council and the Community Development Commission adopt amended text proposed by the California Coastal Commission (CCC) to add language clarifying that the existing downtown density cap of 5,500 units is a target that may be exceeded. The CCC further suggest the addition of language requiring the City to submit a Local Coastal Program Amendment to update density bonus regulations (including within the Downtown District) and add objective design standards for multifamily projects that qualify for streamlined review.
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BACKGROUND AND ANALYSIS
On November 17, 2021, the City Council/Community Development Commission (CC/CDC) adopted an ordinance amending Article 12 of the Zoning Ordinance to remove the 43-dwelling-units-per-acre density limit for mixed-use projects in the Downtown zoning district. By doing so, private development would not be subject to a density requirement, but would be reviewed under objective zoning standards and the Redevelopment Plan’s maximum allowance of 5,500 dwelling units as a means to regulate Downtown residential density (Attachment 1).
On October 4, 2023, the CC/CDC considered text amendments to Article 12 to reinstate a density cap of 100 dwelling units per acre and establish an enhanced density bonus schedule (Attachment 5). The CC/CDC voted 2-2 (with Mayor Sanchez absent) on a revised cap of 85 dwelling units per acre with the enhanced density bonus schedule resulting in no action and automatic continuance to the next meeting for further consideration. Pursuant to City Code Section 2.1.34, the Mayor was authorized to participate in the decision on October 18, 2023, after reviewing the record and public testimony.
On October 18, 2023, the full CC/CDC reconsidered the item and voted to re-instate a density cap of 86 dwelling units per acre without enhanced density bonus schedules (Attachment 6). Additional analysis of the prepared text amendment is provided in the CDC staff report dated October 18, 2023, included as Attachment 6.
On August 20, 2025, the CC/CDC’s adopted amendments to Article 12 were submitted to the CCC for review and certification. The CCC granted a one-year time extension on November 5, 2025. Before the amendment is certified, the City must take formal action to adopt the suggested modification from CCC resolution of certification.
On February 5, 2026 the CCC approved the amendment with suggested modifications to revise the 5,500 maximum dwelling units from an enforceable cap to a target range. As compared to a hard cap, a “range” would permit a future dwelling unit count in the Downtown area to exceed the 5,500 unit threshold if consistent with both the California Coastal Act and State Density Bonus Law. In addition, the City would be required to update its existing density bonus regulations to include the Downtown District by 2029. The staff report for that meeting, dated January 22, 2026, is included as Attachment 8 and the full text of the suggested modifications is included as Attachment 4, Exhibit A.
Modification No. 1
The CCC’s first suggested modification applies to Article 12, Section 1232, Additional Regulation D. The suggested language clarifies that 86 dwelling units per acre is the maximum base density, exclusive of any applicable density bonuses. It also clarifies that although the Downtown District may have a target density cap of 5,500 units, that number is just a target and may be exceeded.
Modification No. 2
The CCC’s second suggested modification applies to Article 12, Section 1232, Additional Regulation KK. The modification further clarifies that the Downtown District’s 5,500-unit density cap figure established by the General Plan is a target number that may be exceeded.
Modification No. 3
The CCC’s final suggested modification also applies to Article 12, Section 1232, Additional Regulation KK. The modification adds three subsections to (1) clarify that State Density Bonus Law does not override or diminish the requirements of the California Coastal Act; (2) clarify that the approving body may allow minor LCP inconsistencies for density bonus projects only if they avoid significant coastal resource impacts, and it requires denial for any concession/waiver/incentive/density increase that would cause unavoidable or unmitigable impacts; and (3) require the City to submit a LCPA to the Coastal Commission by January 1, 2029 to update its density bonus regulations and establish objective design standards for qualifying multifamily projects.
ENVIRONMENTAL REVIEW
Pursuant to the California Environmental Quality Act (CEQA) of 1970 and State Guidelines thereto, the City of Oceanside acting as acting Lead Agency determined that the project was exempt from CEQA per Article 5, Section 15061(b)(3), under the common-sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The Notice of Exemption (NOE) prepared for LCPA22-00002 is included as Attachment 9.
FISCAL IMPACT
Does not apply.
COMMISSION OR COMMITTEE REPORT
Not applicable.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed and approved as to form by the City Attorney.
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Prepared by: Nichole Weedman, Planner II
Reviewed by: Brian Thomas, Interim Development Services Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS
1. City Council Ordinance
2. City Council Resolution
3. City Council Ordinance No. 21-OR0740-1 (ZA19-00006) w/ Exhibit A
4. October 4, 2023, City Council Meeting Minutes
5. City Council Resolution No. 23-R0718-1 (LCPA22-00002)
6. City Council Staff Report - October 18, 2023
7. Coastal Commission LCP Certification Letter and Suggested Modifications - February 17, 2026
8. Coastal Commission Staff Report - January 22, 2026
9. Notice of Exemption