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Developer to hold community meetings about homes that would replace massage and pizza businesses

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A Newport Beach developer wishing to replace a Costa Mesa commercial building whose tenants include massage parlors and Hotties Pizza has organized two neighborhood meetings about the project to gather community input and possibly support.

Steve Sheldon, of Newport Beach-based Sheldon Development LLC, is seeking to replace the 1960s-era building at 440 Fair Drive with 28 new homes, whose asking prices may be as high as $800,000.

To do so, Sheldon, acting on behalf of the property owner, Dennis D’Alessio, first needs a zoning change for the 1.66-acre property, from neighborhood commercial to high-density residential.

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Sheldon, also an Orange County Water District director representing Irvine and Newport Beach, had been scheduled to bring the matter to the City Council on Sept. 1, but, after hearing community concerns beforehand, he asked the council to postpone the hearing.

It has since been tentatively rescheduled for Oct. 6.

Sheldon’s community meetings are scheduled for 6 p.m. to 8 p.m. Friday at City Hall, 77 Fair Drive, and 2 p.m. to 4 p.m. Saturday at Coco’s, 2750 Harbor Blvd.

“This [project] is really about a major face lift in the city,” Sheldon said in a statement to the Daily Pilot on Thursday. “Demolish the building and construct modern homes that are attractive, pedestrian and bicycle friendly, save water and energy, create more open space and increase property taxes” that fund essential city services.

Sheldon described the homes, which will have two or three stories, as a mix of California Craftsman with a beachside vibe. Though designs have not been finalized yet, some could have rooftop decks.

Because the houses would have far fewer people coming in and out of them compared to the commercial building, the project is predicted to dramatically decrease the average daily car trips, from 752 to 268, according to city staff estimates.

Should the council approve 440 Fair Drive’s zoning change, the project would still face several approvals and design review before coming back to city officials in the next few months.

The asking price for the two-bedroom homes with a loft could be about $650,000, Sheldon said, and the four-bedroom units could go for $800,000. They range from 1,786 to 1,811 square feet.

The 440 Fair Drive property has been a source of contention at City Hall in recent years.

Law enforcement raids at the building in 2011 targeted seven massage parlors, believed to be prostitution fronts, within the building. No arrests were made.

Medical marijuana dispensaries once operating out of the building were also targeted in various enforcement efforts in recent years.

Between legal costs and city staff time, 440 Fair Drive has “cost the city a lot of money,” said Mayor Steve Mensinger.

“The landlord has not been very cooperative with dealing with public-nuisance issues,” he added.

Mensinger noted that Sheldon’s upcoming input meetings could help smooth the development’s approval process.

“There’s always a solution,” he said, “if you meet with the stakeholders in the area and educate them along the way.”

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