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Oceanside redevelopment coming into focus

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The plan Oceanside has for a key nine blocks along its waterfront on either side of the Oceanside Pier is finally coming into focus after years of preliminary work.

The cornerstone of the plan is a two-block, multi-building hotel/timeshare development south of the Pier by SD Malkin Properties of Greenwich, Conn.

SD Malkin Properties envisions a 336-room Westin hotel and a 48-unit timeshare component.

Malkin currently proposes a 336-room Westin hotel and a 48-unit timeshare component. This was where Manchester Resorts tried and failed because the California Coastal Commission deemed its 400-room hotel too massive for the site.

Jeremy Cohen, SD Malkin senior vice president who is banking that the S.B Architects of San Francisco design will pass muster this time around, said he has earned the support of Oceanside citizens and the environmental community, which was instrumental in bringing down the Manchester project.

Along with the hotel rooms and timeshares, the project also will include retail and full-service restaurant space, and more than 30,000 square feet of ballroom and meeting space.

"About 90 percent of the rooms have views of the ocean," Cohen said before adding that he is currently negotiating a ground lease with the city for the hotel/timeshare project site.

The hotel property also will incorporate the relocated late 19th century Graves house that may be best known for its presence in the movie "Top Gun."

The hotel will be served by a 600-space underground parking garage.

Based on information provided by Keyser Marston, a research firm, the hotel/time share project is expected to generate at least $46 million over 20 years for Malkin.

By the 10th year, the combination of transient occupancy tax, sales tax, ground lease and other revenues from the Malkin plan is projected to generate $6.5 million for the city annually, and $8.7 million annually by year 20.

Cohen said he would like to begin construction in phases in the fourth quarter of 2008.

SD Malkin is the developer of such projects as The Bridgeworks in the Gaslamp Quarter and the Cable Building Lofts in Hillcrest. It is currently planning a 130-room hotel at Fifth Avenue and E Street in downtown San Diego.

CityMark Development owns five blocks straddling the A.T & S.F. rail line east of Malkin's project and is planning a mixed-use residential/retail project and a possible hotel.

Rich Gustafson, president of CityMark, said his next community meeting on his plan is June 12.

Plans for the property formerly owned by Catellus Development could change, but currently call for a total of 220 residential units, ground-floor retail/restaurant space and perhaps a hotel.

The ground-floor retail on the CityMark blocks is expected to add up to slightly more than 50,000 square feet.

The community plan is such that if Malkin's Westin resort plan falls through, CityMark or any subsequent owner of its property would be obligated to develop as many as 250 hotel rooms. Gustafson said he doesn't know whether or not he would like to have a hotel as part of his plan.

"It's really important that Jerry's (Cohen) plan goes through. These projects are really dependent on each other," Gustafson said.

The CityMark plans, which will vary between four to eight stories, is being designed by J2MK Design of Irvine.

"The height will depend on which block. Also the architecture will be different on each block, so it won't look like a single development," Gustafson said.

As for the timetable, Gustafson said since the CityMark plans are tracking behind the hotel, he expects it will be two to three years before he breaks ground. He says he can't wait.

"We are looking for the kind of energy we are seeing in downtown San Diego," Gustafson said.

CityMark is perhaps best known for its San Diego projects: The 86-unit Aperture development in Little Italy is under construction, and its 231-unit Pier project, also in Little Italy, is scheduled to begin in July.

Gustafson said the CityMark plan has a leg up in that it already is part of an approved coastal plan. This does not rule out the possibility that the Coastal Commission could appeal it, however.

Kathy Baker, Oceanside redevelopment manager, noted that Fairfield Resorts of Las Vegas and Orlando, Fla., is already well under construction on 24 hotel rooms and 144 timeshare units on the block immediately to the north of the Pier and Malkin's Westin site (photo Page 2B). The project was once expected to be developed by Winners Circle Resorts head James Watkins, who sold the property to Fairfield about two years ago.

Rendering of the Fairfield Resorts in Oceanside.

That project is tentatively slated for completion in early 2008.

Baker said sales already have started at Janez-Ledcor Properties' planned Oceanside Terraces development east of CityMark's proposed project. The project will include 38 condominiums, 18,000 square feet of office space and about 10,000 square feet of ground-floor retail.

The two- and three-bedroom condominiums will range from 1,600 to 2,700 square feet, and completion is expected by early next year.


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