Using the rlocus function, you can see that up to a certain value of C (around 0.4 in your case) your closed loop will still be stable. Notice that the closer you get to that value your system will be closer to being unstable and will oscillate more.
Therefor you can start your controller design with a lower gain, such as:
CLgain = 0.25;
CLTF = feedback(CLgain*gs,1)
and try moving on from there.