California Resources Corporation (CRC) has unveiled ambitious plans to transform its 92-acre oceanfront industrial complex in Huntington Beach into a mixed-use development featuring housing, hospitality, and recreational space. The proposal represents a significant shift in land use for this prime coastal property that stretches 1.2 miles along Pacific Coast Highway from Goldenwest Street to Seapoint Street.
The energy company’s rezoning application, submitted to the city on March 28, seeks to convert the industrial site into a development with up to 800 residential units, a hotel with 350 rooms, retail and dining options, and 23 acres of open space including a mile-long linear park along PCH. This transformation would radically alter the character of this stretch of Huntington Beach coastline, long dominated by industrial energy operations.
“The goal of this project is to shape the future of the property with the evolving needs of the local community. We recognize the importance of thoughtful growth and understand the community’s concerns about high-density housing — and that’s not what this is,” CRC’s Senior Vice President of Business Development, Bob Grundstrom, said in a statement.
According to a report in the Daily Pilot, Nital Patel, CRC’s external relations manager, added that the proposed residential units would occupy approximately 53 acres or slightly more than half of the property. The development would offer a diverse housing mix, including single-family detached homes, townhouses, and condominiums, with 10 percent designated as affordable housing in compliance with local policies.
The hotel component would occupy about 16 acres and include not just accommodations but also retail and dining options for visitors and residents alike. This hospitality-focused area would likely capitalize on the property’s proximity to Huntington Beach’s famous coastline, potentially attracting tourists while providing amenities for the new residential community.
A key feature of the proposal is the dedication of 23 acres to open space, including a mile-long linear park along Pacific Coast Highway. This public space component could significantly enhance coastal access and recreational opportunities in an area previously closed to public use due to industrial operations.
The project faces a complex approval process requiring multiple regulatory green lights. CRC’s application proposes amendments to the city’s Palm/Goldenwest specific plan, which currently designates 94 percent of the property for commercial use. Additionally, updates to Huntington Beach’s general plan and local coastal program would be necessary since the property falls within the coastal zone.
The Huntington Beach Planning Commission and City Council must approve the rezoning request. Perhaps most significantly, the California Coastal Commission would need to approve any changes to the local coastal program, adding another layer of regulatory oversight to the process.
“Following the required approvals, existing oil and gas facilities would be removed and the site would be restored for future development,” Patel was quoted in the report. “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.”
CRC has indicated that development isn’t expected to begin for several years, and in the meantime, the company will continue to provide energy resources at the site.
The transformation from an industrial oil and gas complex to residential and commercial use raises important environmental questions. Site remediation will be a critical component of the redevelopment process, ensuring that decades of industrial use don’t impact future residents’ health and safety.
Environmental groups and local residents will likely scrutinize the proposal carefully, particularly given the site’s proximity to sensitive coastal ecosystems. The California Coastal Commission, known for its rigorous oversight of coastal development, will assess how the project impacts coastal resources, public access, and environmental quality.
CRC’s proposal reflects a broader trend among energy companies seeking to diversify their assets and capitalize on valuable real estate as the energy landscape evolves. Formerly part of Occidental Petroleum’s California operations, California Resources Corporation appears to be looking beyond traditional oil and gas activities toward real estate development in prime locations.
For Huntington Beach, the project could significantly reshape a substantial portion of its oceanfront, potentially boosting housing inventory while creating new public spaces in what has long been an industrial zone. The addition of 800 housing units would make a meaningful contribution to local housing stock in a region facing persistent housing shortages.
The hotel, retail, and dining components would likely generate new tax revenue for the city while creating permanent jobs in the hospitality and service sectors. Construction activities would also create temporary employment opportunities during the multi-year development process.
As this proposal moves through the approval process, community engagement and public input will play vital roles in shaping the final development plan. Local residents, environmental advocates, business interests, and municipal officials will all have opportunities to weigh in on this significant land use change.
