Energy company seeks to convert Huntington Beach oil and gas complex to large-scale oceanfront housing

A desirable stretch of oceanfront land in Huntington Beach could switch from an oil and gas production complex to housing, a hotel and more.

Energy company California Resources Corp. (formerly Occidental Petroleum’s California operations) has announced it has applied to rezone its 92-acre property, which runs from Goldenwest Street to Seapoint Street on the inland side of Pacific Coast Highway.

C.R.C.’s proposal seeks to transform the 1.2-mile long site from industrial use into space featuring up to 800 residential units, a hotel and open space.

“The goal of this project is to shape the future of the property with the evolving needs of the local community,” said Bob Grundstrom, C.R.C.’s senior vice president of business development, in a statement. “We recognize the importance of thoughtful growth and understand the community’s concerns about high-density housing — and that’s not what this is. By transitioning the property from an industrial site to a mixed-use community, we’re not only creating housing and economic opportunities but also ensuring that this coastal asset serves residents and visitors for generations to come.”

Nital Patel, C.R.C.’s external relations manager, said the company wants to build up to 800 residential units on about 53 acres of the property, or slightly more than half of it. They would be a mixture of single-family detached homes, townhouses and condos, with 10% complying with affordable housing policies.

The space would also include up to 350 hotel rooms on approximately 16 acres, which would also feature retail and dining options. The remaining 23 acres would be open space, including a 1-mile linear park along PCH.

C.R.C.’s application, submitted to the city on March 28, proposes to amend the city’s Palm/Goldenwest specific plan, which currently designates 94% of the property for commercial uses. The Long Beach-based company’s application also includes updates to Huntington Beach’s general plan and local coastal program, since the property is in the coastal zone. The California Coastal Commission would have to approve any change of the local coastal program.

The Huntington Beach Planning Commission and City Council also need to sign off on the rezoning.

“Following the required approvals, existing oil and gas facilities would be removed and the site would be restored for future development,” Patel said in an email. “We will work closely with the city of Huntington Beach and other relevant agencies to ensure that all environmental and regulatory standards are met throughout the remediation and redevelopment process.”

Patel added that development is not expected to begin for several years, and C.R.C. will continue to provide energy resources at the site in the meantime.

The development news comes months after the previous council unanimously approved the Magnolia Tank Farm Project, which would also be on the site of a former oil pumping and storage facility in southeast Huntington Beach.