HomeMy WebLinkAbout5/6/2025 Item 7b, Tway and Cohen - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: May 6, 2025
TO: Mayor and Council
FROM: Timmi Tway, Community Development Director
Rachel Cohen, Principal Planner
VIA: Whitney McDonald, City Manager
SUBJECT: ITEM # 7b - INTRODUCE AN ORDINANCE AMENDING THE AIRPORT
AREA SPECIFIC PLAN TO ALLOW MIXED-USE RESIDENTIAL
DEVELOPMENT WITHIN THE SERVICE COMMERCIAL (C-S) AND
MANUFACTURING (M) ZONES SUBJECT TO A CONDITIONAL USE
PERMIT WHERE APPROPRIATE AND CONSISTENT WITH THE
AIRPORT
Staff received the following questions regarding the proposed amendments to the Airport
Area Specific Plan. The questions are below with staff’s response shown in italics:
1) The consultant identified “minimum commercial requirements for residential
projects” as an option for addressing the fiscal impacts of the zoning change.
Is this a viable option that staff is supporting? Would this be determined on a
project-by-project basis? Would it require an economic study at the time of the
CUP application?
Yes, the Kosmont Study identified that minimum commercial requirements for
proposed mixed-use projects could achieve fiscal neutrality. However, Kosmont also
highlighted the disadvantages of a prescriptive minimum amount, since there are other
options to achieve fiscal neutrality and a prescriptive approach could limit any new
development (residential and/or commercial) in the AASP area, as a required amount
of commercial space may render new development projects financially infeasible, and
thus unable to proceed at all (Attachment E, Page 11). Based on these disadvantages,
the proposed amendment does not require a minimum commercial square footage as
part of the requirements of the Conditional Use Permit (CUP). Rather, staff is
recommending that each project be evaluated on a project-by-project basis, allowing
flexibility and the ability for the applicant to determine the right mix of uses that best
suits the project’s goals and feasibility. For example, there are currently parcels within
the AASP that contain existing commercial development that have capacity to add a
certain number of residential units to the site (e.g. horizontal mixed-use) and meet the
fiscal neutrality requirement. The CUP would require the applicant to provide an
economic analysis that demonstrates how the project achieves fiscal neutrality
whether that is through providing enough commercial space to offset the residential
units or a mechanism where fees are collected from homeowners to provide public
services (e.g. Community Facilities District (CFD)).