Mission Viejo Pauses Los Osos Core Area Project

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Rendering of the Los Osos Core Area Project showing shopping and outdoor spaces.

News Summary

Mission Viejo has temporarily halted the Los Osos Core Area Project, aimed at redeveloping the Village Center into a shopping and entertainment district. City leaders cited the need for additional due diligence on received construction bids before proceeding. Challenges, including retail store closures and water district delays, have complicated the project’s timeline. A revised timeline for contract awarding is anticipated by December, with construction potentially starting in winter or spring 2025.

Mission Viejo has announced a temporary halt to the Los Osos Core Area Project, which aims to transform the Village Center into a new shopping and entertainment district. City leaders indicated that more time is needed for further “due diligence” concerning the future development of the area.

The decision to pause came during a recent City Council meeting, where City Manager Elaine Lister communicated the need to evaluate the two construction bids received before proceeding. The project was on the verge of awarding a contract to kick off the first phase of the development. Lister stated that the pause is meant to allow for a thorough consideration of all available options.

The project seeks to create a vibrant new shopping space at the Village Center, located at the intersection of Marguerite Parkway and La Paz Road, transforming an older shopping center into a modern facility. The planned development encompasses a 22,736-square-foot shopping center that will connect to the larger project on Oso Creek.

As part of the first phase, a recreational pedestrian and bikeway corridor called the North Pasea will be constructed, linking the Civic Center and Library to the new shopping area. The construction had an estimated cost of $6.2 million last year, with initial plans for construction to begin as early as winter 2024, pending council approval.

However, the city recently faced challenges as several large retail stores, including Michael’s, Party City, and Big Lots, closed their locations. Additionally, delays have occurred with the Santa Margarita Water District regarding its site plan redesign, further complicating the project’s timeline. Despite these challenges, the city has assured residents that no additional costs will arise from the delay.

No specific timeline has been provided for when the bidding pause will be lifted. Assistant City Manager Jerry Hill noted that the City Council aims to award a contract by December, with the possibility of construction commencing later in winter or spring 2025. The completion of this initial phase is expected by 2026 and will include various public amenities such as an ADA-accessible plaza, gathering spaces, restrooms, lighting, landscaping, and space for a weekly market.

The project has been in development since 2021, and community feedback sessions held last year helped shape its direction. New mayor Robert “Bob” Ruesch, who has been involved in Mission Viejo governance since 2016, will discuss his priorities during the first city meeting of the new year, scheduled for January 14. Wendy Bucknum has been appointed as the new mayor pro tem, representing District 5 on the City Council.

In addition to the Los Osos Core Area Project, Mission Viejo is also addressing traffic concerns along La Paz Road with an expansion initiative. This project aims to widen the road from four to six lanes and update the bridge to comply with modern safety regulations. The completion of the La Paz Road improvements is anticipated by January and will also include aesthetic enhancements such as landscaping and street lighting.

Despite the expected benefits of the new lanes in alleviating traffic, Mayor Kelley has cautioned that the efforts may not completely resolve congestion problems during the morning hours, particularly near local schools. As the City Council continues to navigate these developments, the community’s input and needs remain integral to Mission Viejo’s planning efforts.

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