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Costa Mesa takes a step toward replacing massage parlors with high-density housing

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A Costa Mesa commercial center known for Hotties Pizza and massage parlors is now poised to become the site of more than two dozen new homes.

The City Council unanimously approved a zoning change this week for 440 Fair Drive, near Harbor Boulevard, from commercial to high-density residential. The decision allows the project’s Newport Beach developer, Steve Sheldon, to proceed with further design changes for his 28-unit tract.

Sheldon said the homes, which could sell for as much as $800,000 each, will be a facelift for the adjacent College Park community, reduce traffic and increase property values.

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Last month, Sheldon hosted two community input sessions to hear out neighborhood concerns, which included criticism of the project’s density, its limited on-site parking and its future residents relying on street parking.

“I felt at the end of the meeting, while there wasn’t 100% agreement, I believe that we did listen and we worked to address some of the concerns in this initial screening process,” Sheldon said, “and we will continue to work with the neighbors.”

Councilman Gary Monahan was enthusiastic about the change.

“How can you not want to do something like this compared to what you have?” he said.

The 1.66-acre 440 Fair Drive property, built in the 1960s and owned by Dennis D’Alessio, includes Hotties Pizza — which plans to relocate — a car rental business, small offices and nearly 10 massage parlors.

Police raids in 2011 visited the parlors, suspected to be prostitution fronts, though no arrests were made. Years ago, the property also housed medical marijuana dispensaries, which have since closed.

Mayor Steve Mensinger has noted that legal costs and staff time concerning issues at 440 Fair Drive have cost taxpayers tens of thousands of dollars over the years.

Councilwomen Sandy Genis and Katrina Foley had reservations about the project.

Genis was critical of the homes’ design, saying they aren’t particularly family friendly or fit for seniors. Considering the College Park homes next door, she also opined that medium density, not high, would be more appropriate for the site.

Foley was concerned about some of the 28 homes being too close to the adjacent gas station, at the corner of Fair and Harbor.

“They [could] get the wafts of what I believe is a very noxious smell,” she said.

Sheldon, who also represents Irvine and Newport Beach on the Orange County Water District, said his project will include air-quality and vapor studies.

Mayor Pro Tem Jim Righeimer said the project isn’t perfect, but if he were in the area, he would rather view nice homes with front patios than “a bunch of parked cars,” which are common there now.

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