Trading Land for New Homes : Oceanside Approves Plan for Marine Housing Site

Plans to replace a run-down U.S. Marine Corps housing complex with a multimillion-dollar commercial and residential development moved closer to fruition this week when city officials approved in concept a proposal for the 57-acre site near downtown.

During a joint meeting Monday night, the Oceanside City Council and Planning Commission voted to approve a proposal to replace the 40-year-old Sterling Homes complex with a commercial center, apartments and condominiums. Later this week, the Marine Corps, which owns the property, will begin soliciting plans from developers interested in the unusual project.

“This action was a critical milestone,” said Marilyn Cox, an Oceanside city planner and coordinator of the project. “We’ve been working for years to get those buildings demolished because they are deteriorating and have a blighting influence on the city. Now we’re closer to that goal.”

Situated east of Interstate 5, north of Mission Avenue and not far from downtown, the 647-unit Sterling Homes complex sits behind high wire fences and is notorious for its dilapidated appearance and crime problems. The complex houses low-ranking military personnel and has long been a source of disciplinary trouble for the Marine Corps.

The latest plans for the complex were born of a unique real estate deal that allows the Marine Corps to swap the Sterling Homes land for construction of an equal number of new housing units on Camp Pendleton.

Under terms of the deal, made possible by a special act of Congress last year, the military will hire a developer to build the new units. In exchange, the developer will receive title to the Sterling Homes site and about $14 million in federal money originally allocated for rehabilitation of the housing project.

The City of Oceanside is acting as a broker of sorts, preparing a specific development plan and an environmental impact report for the site. Cox said the city intends to designate about 10 acres fronting Mission Avenue for a commercial center and the rest of the property for moderately priced condominiums and apartments. Part of the site may be set aside for housing for the elderly, she said.

When it was built in 1945, the Sterling Homes complex was intended to be temporary quarters for construction workers at Camp Pendleton. Cox said the units are so run-down that they are considered inadequate under federal housing standards.