National City’s Pepper Park can soon expand in size by nearly 50%, thanks to a ruling this week by the California Coastal Commission to approve the National City Balanced Plan.

The approval of the plan at the CCC’s Wednesday meeting, developed by the Port of San Diego, means that not only will the popular park have the ability to increase in size, big changes are coming for commercial, recreation and maritime uses on the National City bayfront.

“We are grateful to the California Coastal Commission for its support of the National City Balanced Plan,” said Danielle Moore, chair of the Board of Port Commissioners. “The progress we have made has been anchored in tireless collaboration with the community, business leaders and, of course, the city of National City. It’s about bringing more recreational opportunities to the bayfront while also streamlining and strengthening maritime operations, and we are eager to bring these projects to life.”

Other components of the balanced plan include:

• Realigning Marina Way to serve as the buffer area between commercial recreation and maritime uses
• The closure of Tidelands Avenue between Bay Marina Drive and West 32nd Street, and West 28th Street between Tidelands Avenue and Quay Avenue, around six acres, to increase terminal efficiency by eliminating redundancies
• The development of a recreational vehicle park, tent sites, cabins and the “ultimate development of up to two hotels with up to 365 rooms, as well as dry boat storage,” a port statement read
• A connector rail project to connect the existing rail and loop track located on the National City Marine Terminal to additional rail car storage spots at the existing Burlington Northern Santa Fe National City Yard east of the National Distribution Center

The Board of Port Commissioners must accept the CCC’s certification, then the port and city can begin the process of completing the above projects.

“I am proud of the work we have done to help create a lasting legacy for National City, the Port of San Diego, and the entire region,” said Port Commissioner GilAnthony Ungab. “Nearly a decade in the making, this plan balances the interests of the community and many other stakeholders, addresses public access, maritime, and recreation uses, and expands waterfront access in my community.”

The National City Bayfront is 273 acres of waterfront land and 167 acres of water, and includes the National City Marine Terminal, Pepper Park, Pier 32 Marina, the Aquatic Center and pieces of public art.

Mayor Todd Gloria announced an initiative Wednesday intended to expand housing options in neighborhoods by integrating small-scale residences such as townhomes, rowhomes and cottages into an area’s existing character.

The Neighborhood Homes for All of Us initiative is also intended to support community land trusts — nonprofit organizations that acquire land to create permanent affordable housing.

“Since Day 1 of my administration, I have been focused on building more homes that San Diegans can actually afford — and getting them built faster,” Gloria said at a news conference Wednesday. “‘Neighborhood Homes for All of Us’ is the latest piece of that puzzle. This innovative program will break down the barriers that have gotten in the way of building the type of housing that I believe is ideal for young families and first-time homebuyers for whom the dream of homeownership has long felt out of reach.”

Around 80% of land zoned for housing in the city is restricted to single-family homes, which continue to increase in price, Gloria said. And a significant portion of new housing being built consists of apartment buildings with primarily studio and one-bedroom units, leaving working-class families fewer and fewer options for homes.

Neighborhood Homes for All of Us is intended to increase the housing supply and allow community land trusts to keep housing affordable in disadvantaged communities for low- to middle-income families.

“San Diego is an incredible place to raise a family, and more families need the opportunity to do that in San Diego’s existing, highly desirable single-family neighborhoods where their kids can learn and play in a great community,” City Planning Director Heidi Vonblum said. “But today, that comes at a price that is out of reach for too many. Integrating more options for families requires careful and thoughtful planning, with input from existing and future community members across the city, to ensure these new home opportunities for San Diego’s families are built in ways that best enhance and benefit San Diego’s amazing neighborhoods.”

The initiative will roll out in two phases. In the first phase, beginning this week and continuing through next summer, San Diegans can help determine what the neighborhoods can look like. The public will be able to see renderings showing small-scale neighborhood homes within San Diego’s existing communities, along with new regulations that “provide a clear pathway for building these homes,” according to a statement from Gloria’s office.

Phase 1 will also include an open house and ways for the community to provide feedback and concerns.

Phase 2, scheduled for the second half of 2026, will be for city staff to develop regulations allowing for the building of more neighborhood homes in a way informed by the public feedback.

The initiative is partly funded through a Regional Early Action Planning grant from the San Diego Association of Governments.