Magnolia Tank Farm project returns to Huntington Beach council for final approval

The much-talked about Magnolia Tank Farm project comes back to the Huntington Beach City Council on Tuesday night for final approval.

The California Coastal Commission approved a land use amendment, with modifications, in July. Magnolia Tank Farm would feature 250 medium-density residential units, a 215-room hotel, retail shops and park areas on the 29-acre site in southeast Huntington Beach.

Now, the City Council will decide Tuesday in a public hearing whether to green-light the Coastal Commission’s modifications and push through the divisive project, brought forward by applicant Irvine-based Shopoff Realty Investments.

Proponents of Magnolia Tank Farm say it builds much-needed housing in the city. Neal Kuster often attends council meetings to speak on housing issues.

“As a package, what this project proposes kind of hits all the boxes for the things that I think the city wants to see,” Kuster said in an interview with the Daily Pilot. “We have new tourism development, new mixed use or commercial development, new affordable housing and new housing units in general. I think from a policy standpoint, and even from a resident’s standpoint, those are all really big positives for the city.”

As proposed, 20% of the homes built would be affordable rental units, with half of those to be offered to workers at the on-site hotel, per modifications made by the Coastal Commission. Also, at least 25% of the hotel rooms must be deemed affordable.

The Magnolia Tank Farm site in southeast Huntington Beach.

(Daily Pilot)

Huntington Beach resident Brianna Bowden sent an email to council in support of the project.

“This is a model project for coastal Orange County because it will provide four things Californians most need: housing, green space, transportation and jobs,” Bowden wrote. “It provides affordable housing and improves coastal access for the public, including a lodge with lower-cost accommodations, public parks and trails.”

But many have voiced concerns over the site’s location next to the former Ascon Landfill, which has had cleanup efforts stopped for now, though Ascon conducted air monitoring pilot tests last year.

There are also flooding concerns in the low-lying area.

A technical study by Q3 Consulting found that existing flood walls were recently improved, but the site could still flood if a major storm surge in the future combined with sea level ride.

Betty Flynn is a member of Friends of Edison Park and visits southeast Huntington Beach often. She said after it rains, lakes form in the park.

“What’s going to happen when we sell them that land, they build their dream and then it’s under water?” she said. “Where’s the money going to come from to fix that? The cons weigh more than the the pros … It’s just a bad idea for many reasons.”

Huntington Beach Councilman Casey McKeon spoke out against the Magnolia Tank Farm project at July’s Coastal Commission meeting.

(File Photo)

Environmental groups have also voiced their concerns to the Coastal Commission.

Orange County Coastkeeper associate director Ray Hiemstra told the Coastal Commission in July that this was the first time in its 25-year history that the organization had opposed a housing development in its entirety.

“This project is proposed to be built in a flood zone subject to sea level rise, on an earthquake fault next to a toxic waste dump,” Hiemstra said. “While good engineers can overcome problems, the combination of issues facing this project make the risk too high.”

In January 2021, the previous City Council made its first approval of the site’s zoning changes by a 5-2 vote, which the Coastal Commission approved with modifications in July of this year.

Council members Dan Kalmick and Rhonda Bolton spoke in favor of the project at that meeting, while Councilman Casey McKeon spoke against it.

The modifications must be approved in full via resolution within six months of the July approval date, or the Coastal Commission’s approval will expire.

The Huntington Beach City Council meets at 6 p.m. Tuesday at City Hall, 2000 Main St. Speakers are given three minutes for public comments, though that number could be shortened depending on the number of speakers.