PLANNING COMMISSION STAFF REPORT
SUBMITTED TO: Planning Commission
SUBMITTED BY: Jennifer Villasenor, Community Development Director
PREPARED BY: Jason Kelley, Senior Planner
SUBJECT:
title
TENTATIVE TRACT MAP (TTM) NO. 19331/CONDITIONAL USE PERMIT (CUP) NO. 25-005/COASTAL DEVELOPMENT PERMIT (CDP) NO. 25-003 (MAGNOLIA COAST)
REQUEST:
TTM: To subdivide a 29-acre site into seven lettered lots and six numbered lots. CUP: To grade the site with approximately 133,425 cubic yards of imported soil and construct a retaining wall up to ten feet tall topped with a seven-foot-tall wall along the north property line. CDP: For the proposed subdivision, demolition, grading, walls and to construct all onsite and offsite street and infrastructure improvements.
LOCATION:
21845 Magnolia Street, 92646 (West side of Magnolia St. between Pacific Coast Highway and Hamilton Ave.)
body
APPLICANT:
Debra Schales, Fuscoe Engineering, Inc., 15535 Sand Caynon Ave., Suite 100, Irvine, CA 92618
PROPERTY
OWNER:
SLF-HB Magnolia LLC, 18565 Jamboree Rd., Suite 200, Irvine, CA 92612
BUSINESS
OWNER:
Not Applicable
RECOMMENDATION:
recommendation
That the Planning Commission take the following actions:
A) Find the proposed project is consistent with Environmental Impact Report No. 17-001 approved and certified by the City Council on January 19, 2021.
B) Approve Tentative Tract Map No. 19331, Conditional Use Permit No. 25-005 and Coastal Development Permit No. 25-003, with suggested findings and conditions of approval (Attachment No. 1).
end
ALTERNATIVE ACTION(S):
A) Deny Tentative Tract Map No. 19331, Conditional Use Permit No. 25-005 and Coastal Development Permit No. 25-003, with findings for denial.
B) Continue Tentative Tract Map No. 19331, Conditional Use Permit No. 25-005 and Coastal Development Permit No. 25-003, and direct staff accordingly.
PROJECT PROPOSAL:
The project includes the following requests:
Tentative Tract Map (TTM) No. 19331 - To subdivide a 29-acre site into seven lettered lots and six numbered lots.
Conditional Use Permit (CUP) No. 25-005 - To grade the site with approximately 133,425 cubic yards of imported soil and construct a retaining wall up to ten feet tall topped with a seven-foot-tall wall along the north property line.
Coastal Development Permit (CDP) No. 25-003 - For the proposed subdivision, demolition, grading, walls and to construct all onsite and offsite street and infrastructure improvements.
Separate entitlements will be submitted for the hotel and residential developments as well as open space improvements.
Background:
In January 2021, the City Council approved Environmental Impact Report No. 17-001, General Plan Amendment No. 17-001, Zoning Map Amendment No. 17-001, Zoning Text Amendment No. 17-005, Local Coastal Program Amendment No. 17-001, and Development Agreement No. 19-001 to amend the General Plan, zoning map, and establish the Magnolia Tank Farm (MTF) Specific Plan for the proposed mixed-use project. In December 2024, the Coastal Commission certified the Local Coastal Program Amendment.
The goal of MTF Specific Plan was to encourage the creation of a mixed-use community that provides visitor serving commercial uses, new residential neighborhoods, opportunities for coastal access and passive recreation and incorporates measures to protect adjacent natural resources. The Specific Plan consists of 29-acres of which 2.84-acres are dedicated as Coastal Conservation (CC), 3.94-acres are dedicated to Open Space Parks, 17.05-acres are dedicated to Medium Density Residential with a maximum unit count of 250 units and 4.32-acres zoned as Commercial Visitor for a 215-guest room hotel.
ISSUES AND ANALYSIS:
Subject Property And Surrounding General Plan Designations, Zoning And Land Uses:
|
LOCATION |
GENERAL PLAN |
ZONING |
LAND USE |
|
Subject Property: |
Residential Medium Density- Specific Plan Overlay (RM-sp), Open Space-Conservation - Specific Plan Overlay (OS-C-sp), Open Space-Parks-Specific Plan Overlay (OS-P-sp), Commercial Visitor-Specific Plan Overlay (CV-sp) |
Specific Plan 18 (SP-18-CZ) (Magnolia Tank Farm Specific Plan-Coastal Zone) |
Vacant |
|
North of Subject Property: |
RM-sp |
Specific Plan 10 (SP-10-CZ) (Magnolia Pacific Specific Plan-Coastal Zone) |
Vacant |
|
East of Subject Property (across Magnolia Street): |
Residential Low Density (RL-7) |
Residential Low Density-Coastal Zone (RL-CZ) |
Residential |
|
South of Subject Property: |
OS-C |
Coastal Conservation-Coastal Zone (CC-CZ) |
Wetland |
|
West of Subject Property: |
Public (P) |
Public Semi-Public-Coastal Zone-Oil Overlay (PS-CZ-O) |
AES Power Plant |
General Plan Conformance:
The General Plan Land Use Map designations on the subject property are Open Space Conservation - Specific Plan Overlay, Open Space Park - Specific Plan Overlay, Commercial Visitor - Specific Plan Overlay, and Residential Medium Density - Specific Plan Overlay. The project is consistent with these designations and the goals and policies of the General Plan as follows:
A. Land Use Element
Goal LU-1 - New commercial, industrial, and residential development is coordinated to ensure that the land use pattern is consistent with the overall goals and needs of the community.
Policy LU-1A - Ensure that development is consistent with the land use designations presented in the Land Use Map, including density, intensity, and use standards applicable to each land use designation.
Policy LU-1B - Ensure new development supports the protection and maintenance of environmental and open space resources.
The proposed project will begin to implement the General Plan and zoning designations for the site enabling future development of lodging, visitor serving commercial, residential, and open space to serve residents and visitors. As required by the Specific Plan, the site must be raised to comply with sea level rise along with grading of the site to prepare for future development.
B. Natural and Environmental Hazards
Goal HAZ-2 - Coastal environments accommodate coastal changes and reduce coastal development impacts.
Policy HAZ-2B - Implement priority measures to reduce and mitigate sea level rise impacts to property and infrastructure outlined in the Coastal Resiliency Program.
As required by the MTF Specific Plan, the site must comply with its associated Sea Level Rise Study by elevating the property to a minimum elevation of 11.3 feet. To meet this requirement, approximately 133,425 cubic yards of soil will be imported to the site and graded to support future development.
C. Coastal Element
Policy C 1.1.4 - Where feasible, locate visitor-serving commercial uses in existing developed areas or at selected points of attraction for visitors.
Goal C 2 - Provide coastal resource access opportunities for the public where feasible and in accordance with the California Coastal Act requirements.
Policy C 2.2.2 - Maintain existing pedestrian facilities and require new development to provide pedestrian walkways and bicycle routes between developments.
Objective C 2.4 - Balance the supply of parking with the demand for parking.
Policy C 2.4.7 - The streets of new residential subdivisions between the sea and the first public road shall be constructed and maintained as open to the general public for vehicular, bicycle, and pedestrian access. General public parking shall be provided on all streets throughout the entire subdivision. Private entrance gates and private streets shall be prohibited. All public entry controls (e.g. gates, gate/guard houses, guards, signage, etc.) and restrictions on use by the general public (e.g. preferential parking districts, resident-only parking periods/permits, etc.) associated with any streets or parking areas shall be prohibited.
Objective C 2.5 - Maintain and enhance, where feasible, existing shoreline and coastal resource access sites.
Policy C 2.6.6 - Promote public access to coastal wetlands for limited nature study, passive recreation and other low intensity uses that are compatible with the sensitive nature of these areas.
Goal C 3 - Provide a variety of recreational and visitor commercial serving uses for a range of cost and market preferences.
Policy C 3.2.4 - Encourage the provision of a variety of visitor- serving commercial establishments within the Coastal Zone, including, but not limited to, shops, restaurants, hotels and motels, and day spas.
Policy C 4.1.2 - Designate lands for the provision of passive and visual open space on the Coastal Land Use Map, which provide a balance to the urban and suburban development of the Coastal Zone.
Policy C 4.7 - Improve the appearance of visually degraded areas within the Coastal Zone.
Policy C 7.1.4 - Require that new development contiguous to wetlands or environmentally sensitive habitat areas include buffer zones. Buffer zones shall be a minimum of one hundred feet setback from the landward edge of the wetland.
The proposed project will begin to implement the General Plan and zoning designations for the site enabling future development of lodging, visitor serving commercial, residential, and open space to serve residents and visitors.
Zoning Compliance:
The proposed subdivision, including the proposed retaining wall, is consistent with the Magnolia Tank Farm Specific Plan (MTFSP) and complies with the Huntington Beach Zoning and Subdivision Ordinance (HBZSO). The numbered and lettered lots are consistent with established specific plan planning areas for commercial visitor, residential, open space, and streets.
The proposed map divides the residential portion of the site into five numbered residential lots ranging in size from approximately 66,964 square feet to 168,112 square feet, and the commercial portion of the site is one numbered commercial lot totaling approximately 188,281 square feet. The remaining lettered lots are for the open space areas and streets. All proposed lots exceed the minimum lot size requirements of both the MTF Specific Plan and the HBZSO of 3,100 to 6,000 square feet for residential and 10,000 square feet for commercial.
The MTFSP does not regulate wall height which requires referring to the HBZSO. The HBZSO permits block walls up to eight feet in height outside of the front setback and allows them to be constructed on top of proposed retaining walls up to a maximum height of two feet when resulting from a fill. Deviations from the wall regulations of the HBZSO require the approval of a CUP as is proposed with this project.
Tract Map:
The proposed subdivision is consistent with the General Plan and the site’s zoning designation. The approximately 29-acre site would be subdivided into seven lettered lots and six numbered lots. Lots A through F would consist of open space parcels ranging in size from approximately 6,835 square feet to 123,557 square feet (approximately 6.78 acres total). Lot G would consist of a private street totaling approximately 186,236 square feet (approximately 4.27 acres).
Lots 1 through 5 would subdivide the residential portion of the site into five separate parcels totaling approximately 13.63 acres. Lot 6 would result in the commercial visitor parcel totaling approximately 4.32 acres.
The proposed subdivision of the 13 lots, along with the import of soil and grading to address projected sea level rise will comply with the requirements of the General Plan, the MTFSP, HBZSO, and other city requirements. The project will include the construction of all street and infrastructure improvements. It will not cause serious health problems or substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat because the property was previously developed with oil tanks, is currently used as a parking lot, and is void of any wildlife habitat. Compliance with regulatory requirements and mitigation measures will be required and implemented.
Demolition, Grading, Walls and Street and Infrastructure Improvements:
Pursuant to Coastal Commission requirements in the MTFSP, the site is required to accommodate future sea level rise by raising the site elevation to 11.3 feet. Building pads will be raised an additional one to two feet above the street elevation within the site. Existing site elevations range from approximately 4.3 feet to 12.5 feet. To achieve the required minimum elevation, approximately 133,425 cubic yards of soil would be imported to the site and graded accordingly. As the site gradually slopes up westerly and towards the north, the perimeter parks and landscaping will help to soften the rise in grade. Following completion of site grading, all required infrastructure and street improvements would be constructed. As a result of the proposed grading and soil import, a retaining wall would be constructed along the north property line and topped with a seven-foot-tall block wall. Demolition will occur prior to any grading.
The project will not be detrimental to the general welfare of persons working or residing in the vicinity or detrimental to the value of the property and improvements in the neighborhood because the import of soil onto the site is necessary to address projected sea level rise as required in the MTFSP. The soil import and mass grading are anticipated to occur over eight months with 200 truck trips per day. The trucks will enter and exit the site from Magnolia Avenue (south driveway) to Pacific Coast Highway and Beach Boulevard, avoiding residential neighborhoods and local streets. The project will be required to comply with Municipal Code requirements including the Noise Ordinance during construction and mitigation measures per the certified EIR. Additionally, the proposed wall will comply with the City’s Urban Design Guidelines by incorporating a stucco finish, pilasters and elevated landscaping. The granting of the conditional use permit will not adversely affect the General Plan because the project is consistent with the General Plan land use designations of Open Space Conservation - Specific Plan Overlay, Open Space Park - Specific Plan Overlay, Commercial Visitor - Specific Plan Overlay, and Residential Medium - Specific Plan Overlay on the subject site. The proposed project will begin to implement the General Plan and zoning designations for the site enabling future development of lodging, visitor serving commercial, residential, and open space to serve residents and visitors.
The project conforms with the City’s Local Coastal Program which encourages new housing, commercial visitor and open space development to locate within, contiguous to, or in close proximity to existing developed areas able to accommodate it. The project is also consistent with the requirements of the CZ Overlay District and conforms with the public access and public recreation policies of Chapter 3 of the California Coastal Act. The proposed project will prepare the existing vacant lot for future development in compliance with the adopted MTFSP, the HBZSO as well as other applicable provisions of the Municipal Code.
Quimby Act
The project will pay park and recreation in lieu fees to satisfy Quimby Act requirements pursuant to Chapter 254 of the HBZSO at the time residential development is proposed.
Urban Design Guidelines Comformace:
The proposed wall will comply with the City’s Urban Design Guidelines. Along the interior side, the wall will incorporate a stucco finish, pilasters, and have elevated landscape planters consistent with the design guidelines. The side facing the Ascon property will also incorporate a stucco finish and pilasters. A vegetated slope will be established upon the completion of the Ascon remediation.
Environmental Status:
The proposed project is covered by the Magnolia Tank Farm Specific Plan Final Environmental Impact Report No. 17-001, which was adopted by the City of Huntington Beach City Council on January 19, 2021. Furthermore, implementation of the project would not result in any new or more severe potentially adverse environmental impacts that were not considered in the certified EIR and the project is required to comply with all applicable EIR No. 17-001 mitigation measures. Considering the whole record, none of the circumstances described under Section 15162 of CEQA Guidelines are present; and therefore, no EIR or MND is required.
Coastal Status:
The proposed subdivision, demolition, grading, walls and construction of all onsite and offsite street and infrastructure within the appealable jurisdiction of Coastal Zone requires a CDP.
Design Review Board:
The Design Review Board reviewed the proposed wall and recommended approval to the Planning Commission at the January 14, 2026 Special Meeting.
Other Departments Concerns and Requirements:
Public Works, Building, Fire, and Community Services staff reviewed the proposed project and only Public Works identified code requirements applicable to the project.
Public Notification:
Legal notice was published in the Huntington Beach Wave on Thursday, January 15, 2026, and notices were sent to property owners of record and occupants within a 500 ft. radius of the subject property, individuals/organizations requesting notification (Community Development Department’s Notification Matrix), and applicant.
Application Processing Dates:
|
DATE OF COMPLETE APPLICATION: |
MANDATORY PROCESSING DATE(S): |
|
January 8, 2026 |
March 9, 2026 |
SUMMARY:
Staff recommends approval of TTM No. 19331, CUP No. 25-005, and CDP No. 25-003 with findings and conditions (Attachment No. 1).
This recommendation is based on the following:
- The project is consistent with the General Plan and its goals and policies, including the Local Coastal Program.
- The project is compatible with the surrounding area.
- The TTM meets the requirements of the Subdivision Map Act.
- The project complies with the provisions of MTFSP and HBZSO.
ATTACHMENTS:
1. Suggested Findings and Conditions of Approval of TTM No. 19331, CUP No. 25-005 and CDP No. 25-003
2. Vicinity Map
3. TTM Plans and Conceptual Grading Plans received December 2, 2025
4. Retaining Wall Plans received December 5, 2025
5. Code Requirements (for informational purposes only) dated December 16, 2025
6. MTF MMRP
7. PowerPoint Presentation