Crescent City officials aim to replace a former seafood processing and ice plant with condos on U.S. Hwy. 101 near the harbor.
At a meeting last week, the city Planning Commission recommended that City Council allow home construction at the site near Oceanworld.
Zoned commercial-manufacturing, the only residential use now allowed at the 2-acre parcel includes motels, hotels or RV parks.
The change would let developers build up to 60 condominiums per acre, with special use permits. Mixed-use projects could also include retail businesses.
"We'd really like to get this property demolished and redeveloped," said city planner Will Caplinger, noting requests from real estate agents to ease building limits in order to allow more condo construction. "We feel it's a good jumpstart."
The change marks one step that the city can take to clear the blighted property. Other options include a state receivership law that lets a municipality temporarily take control of property, clean it up and bill the owner for the work after citations have failed to prompt such work.
"That's a big eyesore for us," Caplinger said of the property at the city's southern entrance. "We're extremely interested in seeing it redeveloped."
The city also aims to buy a 9-acre site west of the ice plant near Shorline RV Park for open space, Caplinger said.
The City Council could consider the zoning law change next month.