The Costa Mesa Planning Commission recommended Monday night that the City Council deny a controversial plan to replace a commercial center in the College Park neighborhood with a multi-story housing development.

After about two hours of public comments from College Park residents, most of them against the project, the Planning Commission voted 3-0 during a special meeting to recommend council denial, citing concerns about building a high-density project next to a single-family neighborhood. Commission Chairman Robert Dickson and Vice Chairman Jeff Matthews were absent.

For the development to move forward, the City Council would have to approve a general plan amendment to change the land-use designation from neighborhood commercial to high-density residential. The council is expected to consider the project Dec. 6, according to city staff.

The applicant, Newport Beach-based Sheldon Development LLC, is seeking to demolish the existing two-story commercial building at 440 Fair Drive to make way for 28 residential units. The 1.66-acre property is at the intersection of Fair Drive and Carnegie Avenue.

The proposal includes eight detached units and 20 duplex units in multi-level buildings that would be 33 and 37.5 feet tall, respectively. The duplex units would include rooftop decks.

The buildings would have a contemporary design consisting of geometric layouts of wood, stone and composite siding.

This commercial center at 440 Fair Drive in Costa Mesa would be demolished to make way for a 28-unit multi-story housing development under a proposal the Planning Commission recommended the City Council deny. (Luke Money | Daily Pilot)

Commissioners and several residents said they favor redeveloping the center, which includes Hotties Pizza, small offices and several spas and massage parlors. In 2011, police raided the parlors, which were suspected of being prostitution fronts. No arrests were made.

The property also has housed medical marijuana dispensaries.

“That center over there is an eyesore,” Commissioner Colin McCarthy said. “Any way you want to cut it, it’s not good for the community.”

However, commissioners and residents said the proposed project doesn’t fit the character of College Park.

“Rezoning this thing to high density next door to single-family residential without a strong reason, aside from getting rid of massage parlors ... it’s not palatable to me,” McCarthy said.

Commissioners said they would be more in favor of a medium-density project on the site, noting 33 two-story detached homes underway on 3.71 acres at the northeast corner of Merrimac Way and Harbor Boulevard.

Steve Sheldon, chief executive of Sheldon Development, said his company’s project would eliminate an aging and blighted commercial building and “provide high-quality housing for Costa Mesa families” while increasing property values.

He declined to comment after Monday’s meeting about the commission’s recommendation.

Dozens of College Park residents packed City Hall to speak against the project, and 99 residents sent letters to the commission outlining their objections.

“This project would do little or nothing to enhance the community but would be detrimental to property values in every surrounding neighborhood,” College Park resident Jim Lindsay wrote. “It would also create traffic problems associated with developments like this, as well as require infrastructure upgrades.”

Sheldon said the new homes would reduce traffic to and from the site, because residential properties typically generate fewer car trips than commercial uses. The project also would provide 117 parking spaces onsite, all but five of them in garages or driveways, he said.

Staff had suggested the Planning Commission delay voting on the project Monday and direct the developer to meet again with local residents about their concerns. Staff also suggested that code violations at the commercial center should be addressed before the new project moves forward.