Dana Point’s Doheny Village is expected to see the construction of a new 306-unit housing that has been in the works since 2020.

The city council approved the development during a first reading on June 18 in a 3-1 vote, with Councilman Michael Villar dissenting and Councilman Matthew Pagano absent. 

Supporters say the project will improve Doheny Village and give the area a facelift while also adding new affordable housing opportunities, while some critics said it could lead to bigger projects throughout town.

“The developer has put together a project that supports the community and supports the objectives of the community,” said Councilmember John Gabbard. 

“While it’s not perfect by any stretch of the imagination, I think it’s a plus for not only the city of Dana Point but also a bigger plus for Doheny Village in that we’re going to put some new life down there that it hasn’t seen in a very long time,” he added.

Although Villar also expressed support for the project, he voted against the item since the developer couldn’t guarantee they would hire union workers during construction.

“I feel terrible that that’s the position that I’m in, but that is critically important to me personally that we find a way to have union workers on that job,” Villar said at the meeting on June 18.

Currently, the space is being used as a bus yard for the Capistrano Unified School District with some residents describing the area as an eyesore.

According to a staff report, 46 of the 306 units proposed — about 15% — would fall under affordable housing requirements. 

The available affordable housing is broken up to include 5% of the units for very low-income tenants, 5% for low-income tenants and 5% for tenants with moderate income.

The city’s 2021-2029 Regional Housing Needs Allocation — state housing mandates — call for the city to add 147 very low, 84 low, 101 moderate and 198 above moderate-income units.

The development is expected to feature a mix of studios and 1-, 2- and 3-bedroom apartments less than a mile from the beach, although none of the apartments are expected to have a coastal view.

The project was originally proposed to include about 400 housing units before it was decreased to 306 due to size concerns.

As part of the development agreement, the project will generate approximately $40 million to benefit and improve Dana Hills High School and other local schools, according to the staff presentation during the meeting.

“This is a great resource for our community to come together and support our future scholars of Dana Hills,” Melissa Caldwell, the current President of the Dana Hills High School Parent Teacher Student Association, said during the meeting. “After all, they are the future of Dana Point and our community.”

There is also expected to be a $6.45 million community benefit from the project as part of the development agreement. 

Currently, there’s no formal commitment on how the money will be spent, but city officials expressed an interest to see if they can use it to improve their parks.

Other residents who came to speak at the meeting said the development and bus yard removal will help improve the look of Doheny Village.

“Most of us who live in the Palisades are excited for the day when instead of driving past a derelict bus yard that attracts unsavory elements, we can drive through Doheny Village with pride and feel that it compliments the coastal style and quality of our neighborhoods,” Dana Point resident Toni Nelson said during the meeting.

Critics say the large development could open the door for even bigger projects in their coastal town, a concern that’s prevalent across Orange County.

“Is this where we watch the city of Dana Point turn into one megalith complex after another like they’re doing in Irvine?” another resident asked. “And our beautiful, nice, small-town beach city is gone forever?”

The item will return to the council at a future meeting for a second discussion before a final vote and approval. The California Coastal Commission will also need to approve the development.

Angelina Hicks is a Voice of OC Tracy Wood Reporting Fellow. Contact her at ahicks@voiceofoc.org or on Twitter @angelinahicks13.

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