A developer is proposing to build 36 single-family homes on a 4-acre vacant parcel at the northeast corner of Interstate 5 and state Route 78, just west of a Walmart-anchored shopping center. Six of the homes would be set aside as affordable housing, which under state law allows more homes on the si te than otherwise permitted by local zoning. The state density bonus law also allows the houses to be built closer to the street and cover a larger percentage of each lot. “The Kelly Street (Lagoon Pacific) project is still under review by city staff and a date for the Planning Commission has not been set yet,” Senior Planner Shannon Vitale said in an email Friday. “The Planning Commission will make a recommendation to the City Council, and the City Council will take action to approve or deny the project.” Developer Steve Sheldon of Tustin, the applicant, recently hosted two community meetings to publicize the project and about 40 people attended each one, according to an April 10 update provided to the Oceanside City Council. “Concerns raised by the attendees included the proposed density, increase in traffic, site access, fire evacuation, reduced lot size, reduced property values, compatibility with existing neighborhood, and impacts to existing infrastructure,” the update states. The developer’s application states that the project is “compatible with surrounding residential development … with adequate setbacks, parking, vehicular access, and open space to ensure no impacts occur on adjacent properties.” State density bonus laws are intended to encourage higher density in projects near public transportation, jobs, services and within areas already developed as a way to help reduce the regional housing shortage and address environmental concerns. The vacant site is on the south side of Kelly Street, between Hunsacker Street and Andy Lane, just east of North Coast United Methodist Church. All access to the homes would be from a private street to be built within the development. Each home will be two or three stories ranging from 1,680 to 2,360 square feet with four bedrooms, an attached two-car garage and a driveway. Lot sizes range from 1,955 to 3,134 square feet. The project includes 18 guest parking spaces on the private street. ...read more read less