HomeMy WebLinkAboutItem 5g Adoption of Ord No, 1747 (2025 Series) to amend the Airport Area Specific Plan to allow Mixed-Use Residential Development Item 5g
Department: Community Development
Cost Center: 4006
For Agenda of: 6/17/2025
Placement: Consent
Estimated Time: N/A
FROM: Timmi Tway, Community Development Director
Prepared By: John Rickenbach, Contract Planner and Rachel Cohen, Principal Planner
SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 1747 (2025
SERIES) TO AMEND THE AIRPORT AREA SPECIFIC PLAN TO ALLOW
MIXED-USE RESIDENTIAL DEVELOPMENT WITHIN THE SERVICE
COMMERCIAL (C-S) AND MANUFACTURING (M) ZONES SUBJECT TO
A MINOR OR CONDITIONAL USE PERMIT
RECOMMENDATION
Adopt Ordinance No. 1747 (2025 Series) entitled “An Ordinance of the City Council of the
City of San Luis Obispo, California, amending the Airport Area Specific Plan to allow
mixed-use development in the Service Commercial (C-S) and Manufacturing (M) zones
subject to a minor or conditional use permit where appropriate and consistent with the
Airport Area Specific Plan, including adoption of an addendum to the Final Environmental
Impact Report for the Airport Area and Margarita Area specific plans and relate d facilities
master plans.”
POLICY CONTEXT
The proposed amendments are intended to expand housing opportunities in the City by
allowing mixed-use development in areas zoned Service Commercial (C-S) or
Manufacturing (M) within the Airport Area Specific Plan (AASP) consistent with many of
the City’s goals, policies, and programs outlined in Table 1 below.
Table 1: Major City Goals and General Plan Policy Consistency
Goal/Policy/Program Consistency Analysis
Major City Goal
Housing and Homelessness. Support the
expansion of housing options for all, and
continue to facilitate the production of
housing, including the necessary supporting
infrastructure, with an emphasis on affordable
and workforce housing as well as accessibly
connected development. Collaborate with
Consistent. The proposed amendments
allowing mixed-use in the AASP directly
addresses this major city goal by creating an
additional area of the City that can
accommodate housing in the City.
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Item 5g
Goal/Policy/Program Consistency Analysis
local non-profit partners, non-governmental
agencies, the county, the state, and federal
governments to advocate for increased
funding and implementation of
comprehensive and effective strategies to
prevent and reduce homelessness.
Work Program Item #3.1.c. Initiate an
update to the Airport Area Specific Plan to
allow mixed-use residential development,
where appropriate and consistent with the
County Airport Land Use Plan.
Consistent. The proposed amendments to
the AASP would fulfill MCG work program
item 3.1.c to allow additional residential
development as part of a mixed-use project
consistent with the ALUP.
General Plan Housing Element
Program 5.5. Update the Zoning
Regulations to allow mixed-use development
within Service Commercial (C-S) and
Manufacturing (M) zones without a use
permit within one year of the adoption of the
Housing Element.
Consistent. Program 5.5 has already been
implemented in C-S and M zones throughout
the City, with the exception of several specific
plan areas, such as the AASP. With the
recent update of the Airport Land Use Plan
(ALUP), there is now an opportunity to
implement this program in the AASP.
However, a Conditional Use Permit (CUP)
would be required subject to specific findings
due to existing conditions in the AASP.
Program 6.13. Consider General Plan
amendments, as projects are proposed, to
rezone commercial, manufacturing, or public
facility zoned areas for higher-density, infill or
mixed-use housing, where compatible with
surrounding development…
Consistent. While Program 6.13 encourages
mixed-use residential development through
amendments to the General Plan (and not to
specific plans), its intent is consistent with the
specific plan amendment currently being
proposed, which would allow for mixed-use
residential development in a substantial
portion of the City where it had not been
previously allowed, and would have a similar
effect to what would occur through a General
Plan amendment.
General Plan Land Use Element
Policy 3.8.5. Mixed Uses. The City
encourages compatible mixed uses in
commercial districts.
Consistent. By allowing for mixed-use
residential development within the Service
Commercial and Manufacturing zones within
the AASP, the project directly implements this
policy.
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Item 5g
DISCUSSION
In 2005, the City adopted the Airport Area Specific Plan (AASP) in the southern part of
the City surrounding the San Luis Obispo County Regional Airport. The specific plan only
included commercial and industrial type uses and development standards based on the
regulations outlined in the 2002 San Luis Obispo County Regional Airport’s Airport Land
Use Plan (ALUP). In 2021, the Airport Land Use Commission (ALUC) updated the ALUP
and removed restrictions to residential development in specific airport safety zones. This
update has provided the City an opportunity to consider mixed-use residential projects
within the AASP.
In 2020, the City adopted the Housing Element and included Program 5.5 t hat called for
updating the Zoning Regulations “to allow mixed -use within Service Commercial (C-S)
and Manufacturing (M) zones without a use permit within one year of the adoption of the
Housing Element.” In 2021, the City Council adopted an update to the Zoning Regulations
that removed the Conditional Use Permit (CUP) requirement and allowed mixed -use by
right in the C-S and M zones. However, updates could not be made to specific plan areas
such as the AASP because of the existing 2002 ALUP safety zone and noise contour
limitations.
With the update to the ALUP, an update to the Zoning Regulations, and the Major City
Goal of Housing and Homelessness, City Council included work program item 3.1.c in the
2023-25 Financial Plan; “Initiate an update to the Airport Area Specific Plan to allow
mixed-use residential development, where appropriate and consistent with the County
Airport Land Use Plan.” In September 2023, the City received an application from a
developer to initiate and implement this task.
As such, the City is proposing to amend the AASP to allow mixed-use development within
parcels zoned either Service Commercial (C-S) or Manufacturing (M) in ALUP Safety
Zone 6 with a Minor Use Permit (MUP) or a Conditional Use Permit (CUP). A project
would be required to demonstrate that it has access to sufficient water and sewer capacity
and infrastructure, is fiscally neutral, compatible with nearby uses, consistent with the
ALUP, and that there is adequate emergency response. Each project would be subject to
environmental review as required by the California Environmental Quality Act (CEQA).
Previous Action and Public Engagement
Airport Land Use Commission – January 15 and February 19, 2025
On January 15, 2025, the project was informally presented to Airport Land Use
Commission (ALUC) for preliminary review and formally reviewed on February 19, 2025.
The ALUC found the project to be in conformance with the ALUP, subject to findings and
conditions, which have been incorporated into the proposed AASP amendment.
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Item 5g
Planning Commission – February 26, 2025
The Planning Commission reviewed the proposed specific plan amendment s on February
26, 2025, which incorporated the recommendations of the ALUC. The Planning
Commission unanimously recommended that the City Council approve the proposed
amendments with a minor edit to the amendment to clarify that emergency response is
consistent with the Climate Adaptation and Safety Element (CASE). Public notice was
provided for the Planning Commission meeting and the opportunity for public comment
was provided during that meeting. No one commented at the Planning Commission
meeting.
SLO Chamber of Commerce Economic Development Committee – April 3, 2025
City staff provided a presentation to the Economic Develo pment Committee on the
proposed amendments to the AASP and answered questions the committee had about
the proposed changes.
City Council – May 6, 2025
The City Council voted 5-0 at the May 6, 2025, public hearing to introduce an ordinance
amending the Airport Area Specific Plan to allow mixed -use development in the Service
Commercial (C-S) and Manufacturing (M) zones subject to a minor or conditional use
permit where appropriate and consistent with the Airport Area Specific Plan . The
Ordinance introduced by Council included modifications to specify that a Minor Use
Permit (MUP) be required for projects that qualify as a minor or moderate development
review and require a Conditional Use Permit (CUP) for projects that qualify as a major
development review, consistent with Municipal Code Section 17.106, as presented by
staff at the hearing, instead of requiring a Conditional Use Permit for all mixed-use
projects. These modifications and associated administrative changes are included in
Attachment A, Ordinance No. 1747 (2025 Series). Public notice was provided for the
public hearing consistent with the City’s notification procedures. Public comment was
received both in writing and during the public meeting held on May 6, 2025.
Public notice for this City Council meeting held on June 17, 2025, has been published in
a widely circulated local newspaper, and hearing agendas for this meeting have been
posted at City Hall and online, consistent with adopted notification procedures.
CONCURRENCE
Planning Division Staff, as well as the City Attorney’s office, have reviewed the proposed
amendments to the AASP and any feedback has been incorporated in the draft ordinance.
ENVIRONMENTAL REVIEW
The Final Programmatic EIR for the Airport Area and Margarita Area Specific Plans and
Related Facilities Master Plans (“Final EIR”, or “AASP Final EIR”) addressed future
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Item 5g
development within the Airport Area Specific Plan. The Final EIR was certified in
September 2003 and has provided the basis for evaluating th e impacts of future
development within the AASP area. Subsequent amendments to the AASP were subject
to separate CEQA evaluations to address the potential impacts stemming from those
amendments.
An Addendum to the Final EIR has been prepared to address changes to the approved
project, and is included as Attachment G. Pursuant to Section 15164(b) of the CEQA
Guidelines, an addendum to an adopted Final EIR may be prepared by the Lead Agency
that prepared the original Final EIR if only minor technical changes or additions are
necessary or none of the conditions described in Section 15162 have occurred that
require preparation of a subsequent EIR. An Addendum is appropriate to address the
modified project because the proposed changes to the approved project do not meet the
conditions of Section 15162(a) for preparation of a subsequent EIR.
The County of San Luis Obispo Airport Land Use Commission conducted an Initial Study
and prepared a Negative Declaration for the 2021 update of its Airport Land Use Plan
(ALUP). That environmental document was used in part to inform some of the conclusions
contained in the Addendum prepared for the proposed AASP amendment.
FISCAL IMPACT
Budgeted: N/A Budget Year: 2024-25
Funding Identified: N/A
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $0 $0 $0 $0
State
Federal
Fees
Other:
Total $0 $0 $0 $0
Fiscal Impact of Approving the Specific Plan Amendment
There are no fiscal impacts directly related to approval of the specific plan amendments.
No previously unanticipated fiscal impacts would occur as a result of this action.
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Item 5g
ALTERNATIVES
1. Continue the second reading and adoption of the ordinance. An action continuing
the project should include direction for staff on pertinent issues that should be further
studied or analyzed for future presentation to the Council, with consideration that the
Council has provided direction to staff via Work Program Item #3.1.c. to “Initiate an
update to the Airport Area Specific Plan to allow mixed -use residential development,
where appropriate and consistent with the County Airport Land Use Plan.” If Council
pursues this alternative, any modifications to the ordinance would require another
introduction at a future Council meeting and a second reading / adoption at another
regularly scheduled meeting that follows at least five days after the introduction.
2. Do not adopt the introduced ordinance. The City Council could decide not to adopt
the attached Ordinance. Amendments to the AASP are required to be made per Work
Program Item #3.1.c. which supports Major City Goals and the City’s General Plan.
Denying the proposed amendments would also provide a barrier to future housing
production that will be required by the state. If Council pursues this option, they should
provide findings that cite the basis for denial, which should reference inconsistency
with Major City Goals, General Plan, or other relevant policy documents.
ATTACHMENTS
A - Ordinance No. 1747 (2025 Series)
B - Addendum to Final EIR
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ORDINANCE NO. 1747 (2025 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING THE AIRPORT AREA SPECIFIC
PLAN TO ALLOW MIXED-USE DEVELOPMENT IN THE SERVICE
COMMERCIAL (C-S) AND MANUFACTURING (M) ZONES SUBJECT
TO A MINOR OR CONDITIONAL USE PERMIT WHERE
APPROPRIATE AND CONSISTENT WITH THE AIRPORT LAND USE
PLAN, INCLUDING ADOPTION OF AN ADDENDUM TO THE FINAL
ENVIRONMENTAL IMPACT REPORT FOR THE AIRPORT AREA
AND MARGARITA AREA SPECIFIC PLANS AND RELATED
FACILITIES MASTER PLANS, AS REPRESENTED IN THE CITY
COUNCIL AGENDA REPORT AND ATTACHMENTS DATED MAY 6,
2025 (SPEC-0457-2023)
WHEREAS, it is a Major City Goal to address housing and homelessness by
supporting the expansion of housing options for all, and continue to facilitate the
production of housing; and
WHEREAS, the General Plan Land Use and Housing Elements include numerous
policies that support the development of additional housing to meet ongoing demand; and
WHEREAS, the City has allowed for mixed-use development in Service
Commercial (C-S) and Manufacturing (M) zones throughout the City except in the Airport
Area Specific Plan (AASP) in order to help address ongoing housing demand; and
WHEREAS, the City has not allowed for mixed-use development in C-S and M
zones in the AASP because of density and land use restrictions set forth in the 2002 San
Luis Obispo County Airport Land Use Plan (ALUP) in effect at the time of the adoption of
the AASP in 2005; and
WHEREAS, the San Luis Obispo County Airport Land Use Commission updated
the ALUP in 2021 in such a way that provides an opportunity for mixed-use residential
development in the C-S and M zones within the AASP; and
WHEREAS, the Airport Land Use Commission of the County of San Luis Obispo,
upon receipt of a formal referral from the City of San Luis Obispo, conducted a hearing
on February 19, 2025, and determined the proposed amendments to the AASP are
consistent with the ALUP subject to findings and conditions; and
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a
public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo,
California on February 26, 2025, and recommended adoption of amendments to the
AASP to allow mixed-use development within specified areas of the Service Commercial
(C-S) and Manufacturing (M) zones subject to a minor or conditional use permit where
appropriate and consistent with the ALUP; and
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Ordinance No. 1747 (2025 Series) Page 2
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WHEREAS, the City Council of the City of San Luis Obispo conducted a public
hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California
on May 6, 2025, for the purpose of approving amendments to the AASP to allow mixed -
use development within specified areas of the Service Commercial (C-S) and
Manufacturing (M) zones subject to a minor or conditional use permit where appropriate
and consistent with the ALUP; and
WHEREAS, notices of said public hearings were made at the time and in the
manner required by law; and
NOW, THEREFORE, the City Council of the City of San Luis Obispo does hereby
ordain as follows:
SECTION 1. Findings. Based upon all the evidence in the record, the Council
makes the following findings:
1. The proposed amendment to the Airport Area Specific Plan (AASP) is consistent
with the intent of the General Plan because it will not result in additional impacts
beyond those anticipated in the Airport Area and Ma rgarita Area Specific Plans
and Related Facilities Master Plans Final EIR, and because the concept of mixed
uses in appropriate locations within the city is supported in multiple policies within
the General Plan, notably in the Housing and Land Use Elements.
2. The proposed AASP amendments are intended to allow for mixed -use
development consistent with the intent of the General Plan and in a manner
generally consistent with how it is considered in C-S and M zones elsewhere in the
City.
3. The proposed AASP amendments do not substantively change the policy
framework or overall land use, or circulation pattern envisioned in the originally
adopted Specific Plan.
4. The proposed AASP amendments will not cause serious health problems,
substantial environmental damage, or cause impacts beyond those disclosed in
the certified Final EIR and Addendum for this action.
SECTION 2. Environmental Review. An addendum to the certified Final
Environmental Impact Report (FEIR) (SCH #2000051062) for the Airport Area and
Margarita Area Specific Plans and Related Facilities Master Plans was prepared to
address changes to the previously-approved project, pursuant to Section 15164(b) of the
CEQA Guidelines, since only minor technical changes or additions are neces sary to the
certified Final EIR and none of the conditions described in Section 15162 of the CEQA
Guidelines have occurred that require preparation of a subsequent EIR.
The project is consistent with the certified Final Environmental Impact Report (FEIR) for
Airport Area and Margarita Area Specific Plan and Related Master Plans under the
California Environmental Quality Act (CEQA) in conjunction with an Addendum prepared
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Ordinance No. 1747 (2025 Series) Page 3
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pursuant to CEQA Guidelines 15164. All mitigation measures adopted as part of the Fin al
EIR that were included in the Airport Area Specific Plan that are applicable to the
proposed Specific Plan Amendment (SPA) are carried forward and applied to the
proposed SPA to effectively mitigate the impacts that were previously identified.
SECTION 3. Action. The Airport Area Specific Plan is hereby amended as
follows:
Chapter 1—Introduction
Page 1-3. Environmental Review. Add the paragraph below after the first paragraph on
the page.
Pursuant to Section 15164(b) of the CEQA Guidelines, an Addendum to the Final EIR
was prepared to address changes to the Specific Plan Amendment approved in 2025,
which allowed mixed-use development in Service Commercial (C-S) and Manufacturing
(M) zones subject to a Minor or Conditional Use Permit within the AASP.
Page 1-7. The Planning Process. Add the paragraph below at the end of this section.
In 2025, the AASP was amended to allow mixed -use in the Service Commercial (C-S)
and Manufacturing (M) zones subject to a Minor or Conditional Use Permit and findings
described in Table 4-3, consistent with the 2021 amended and restated San Luis Obispo
County Regional Airport Land Use Plan.
Chapter 3—Conservation and Resource Management
Page 3-12. Aircraft Operations. Add the paragraph below to the end of this section:
The Airport Land Use Commission adopted a major amendment to the Airport Land Use
Plan on May 26, 2021. The amended and restated ALUP provides for noise contours that
are tied to aircraft and airport activity that are consistent with adopted federal Terminal
Area Forecasts, and on safety zones that are based on and consistent with those
described in the Caltrans Airport Land Use Planning Handbook. These revised safety
areas and noise contours have the general effect of opening certain areas in the AASP
to residential development.
Chapter 4—Land Use
Page 4-2. Land Use Background. Modify the third paragraph as follows:
The land use plan was developed to ensure compatibility with airport operations. The
designated AASP land uses are consistent with the airport safety areas in the San Luis
Obispo County Regional Airport Land Use Plan (ALUP), as amended in 2021. Generally,
the critical areas in line with the runway centerlines will be maintained as open space.
Lower intensity warehousing, manufacturing, service, business park and mixed -use
development are designated for the less sensitive zones to the sides of the runways, and
further out from the ends of the runways.
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Ordinance No. 1747 (2025 Series) Page 4
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Page 4-3. Land Use Background. Remove Table 4-1 (Airport Area Specific Plan Land
Use Program and Development Capacities) and all references to Table 4-1 in the entire
text of the Specific Plan.
Page 4-23. Table 4-3. Allowed Uses. Amend Table 4-3 to include a line item for Mixed-
Use, indicating that it is allowed with a Minor or Conditional Use Permit and add notes #9
and #10 at the end of the table that refers to the development standards and findings for
mixed-use development within the C-S and M zones as written below.
Table 4-3 – Allowed Uses
Key:
A = Allowed
D = Allowed by Administrative Use Permit
PC = Allowed by Planning Commission Use Permit
Land Use
Zoning District
PF C-S M BP
MIXED-USE (also see Footnotes 9 & 10) D/PC D/PC
Footnote:
9. Per the Zoning Regulations, a Minor (Administrative) Use Permit (noted as D in Table
4-3) shall be applied to projects that qualify as a minor or moderate development review
and a Conditional Use Permit (noted as PC in Table 4-3) shall be applied to projects that
qualify as a major development review. In order to approve a Minor Use Permit or
Conditional Use Permit for a mixed-use development in the C-S and M zones, the
Community Development Director or the Planning Commission shall find the project
consistent with development standards outlined in San Luis Obispo Municipal Code
Section 17.70.130 (Mixed-use development) and make the following findings:
1) There is demonstrable water and sewer capacity to serve the project;
2) Any fiscal impact of the project to the City must be offset to achieve fiscal
neutrality;
3) There are no nearby uses that generate sufficient air emissions, noise, odors
or vibration to create an incompatibility with proposed mixed -use development;
4) Proposed mixed-use residential development is consistent with land use,
safety or noise restrictions set forth in the ALUP and any residential portion of
a mixed-use development shall be wholly located within Safety Zone 6; and
5) There is adequate emergency response consistent with the Climate Adaptation
and Safety Element (CASE).
10. Avigation easements shall be recorded for each property prior to the issuance of a
building permit. All owners, potential purchasers, occupants (whether as owners or
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renters), and potential occupants (whether as owners or renters) shall receive ful l and
accurate disclosure concerning the noise, safety, or overflight impacts associated with
Airport operations prior to entering any contractual obligation to purchase, lease, rent, or
otherwise occupy the subject property or properties.
Page 4-28. Table 4-5. Building Intensity and Coverage Standards. Amend Table 4-5 to
indicate a maximum Floor Area Ratio (FAR) of 1.5 for the C -S and M zones for mixed-
use development as shown below.
Table 4-5
San Luis Obispo Airport Area Specific Plan
BUILDING INTENSITY AND COVERAGE STANDARDS
Also See Table 4-6. Limitations on employee and customer concentrations due to
airport safety are more restrictive than the standards provided below in most cases
and may reduce maximum potential FAR.
Design Standard
Land Use Designation
Business
Park
Service
Commercial Manufacturing
Maximum floor area ratio: mixed-
use development
n/a 1.5 1.5
Page 4-30. Table 4-8. Parking Standards. Add the following note to Table 4-8:
(b) Parking standards for the residential component of mixed-use projects in the C-S and
M zones must be consistent with the parking standards for residential uses as set forth in
Section 17.72 of the Zoning Regulations.
Chapter 5—Community Design
Page 5-15. Goal 5.4, Guideline I. Modify as written below.
In R-3 and R-4 zones, as well as in the residential portions of mixed-use projects, parking
bays and garages shall be placed adjacent to non-residential uses or adjacent to noise
exposure areas to the extent possible to buffer sound impacts .
Page 5-18. Standard 5.6.2. Modify as written below.
Each commercial, industrial loading, outdoor recycling or waste collection area shall be
located on the side of a building opposite from parcel lines or street frontages of any land
designated for residential use, or for mixed-use projects, separated or screened from the
residential portion of the project to the extent possible.
Page 5-38. Table 5-5. Add a footnote to Table 5-5 as follows:
Residential landscape design standards also apply to mixed-use projects within the
Service Commercial and Manufacturing land use categories.
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Chapter 8—Public Facilities Financing
Page 8-15. Add a new Section as follows:
8.6.4 Fiscal Neutrality
In order to support long-term fiscal solvency for the City General Fund while not over-
prescribing non-residential uses beyond market and financial feasibility, and while not
relying solely on future non-residential uses which are difficult to predict, mixed-use
projects will be required to achieve fiscal neutrality. It is recommended that the City
implement a Community Facilities District (CFD), similar to the mechanism used for the
Avila Ranch development project, that could be applied to the AASP. However, without
a CFD or another mechanism that can apply to the entire AASP, fiscal neutrality can also
be achieved on a project-by-project basis, through the implementation of Home Owners
Associations or similar mechanisms that use fees collected from homeowners to provide
public services.
Chapter 9—Implementation
Page 9-2. Section 9.4, Architectural Review. Modify as written below.
Consistent with required citywide procedures, commercial, industrial, institutional, mixed -
use and residential developments will be subject to architectural review.
Page 9-3. Section 9.8, Environmental Review. Add the following sentence to the end of
this section:
All individual development projects within the AASP that require discretionary approval
are subject to project-specific environmental review as applicable under the California
Environmental Quality Act (CEQA).
SECTION 4. Severability. If any subdivision, paragraph, sentence, clause, or
phrase of this Ordinance is, for any reason, held to be invalid or unenforceable by a
court of competent jurisdiction, such invalidity or unenforceability shall not affect the
validity or enforcement of the remaining portions of this Ordinance, or any other
provisions of the City’s rules and regulations. It is the City's express intent that each
remaining portion would have been adopted irrespective of the fact that any one or
more subdivisions , paragraphs, sentences, clauses, or phrases be declared invalid or
unenforceable.
SECTION 5. Publication. A summary of this ordinance, together with the names
of Council members voting for and against, shall be published at least five (5) days prior
to its final passage, in The New Times, a newspaper published and circulated in this City.
This ordinance shall go into effect at the expiration of thirty (30) days after its final
passage.
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INTRODUCED on the 6th day of May 2025, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the 17th day of June, 2025, on the following
vote:
AYES:
NOES:
ABSENT:
___________________________
Mayor Erica A. Stewart
ATTEST:
___________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
__________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on _______________________.
___________________________
Teresa Purrington
City Clerk
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Addendum to the Final Programmatic Environmental Impact Report for the
Airport Area and Margarita Area Specific Plans and Related Facilities
Master Plans
1. Project Title:
Airport Area Specific Plan Amendment to Allow Mixed-Use Development in the Service
Commercial (C-S) and Manufacturing (M) zones subject to the approval of a conditional
use permit
2. Lead Agency Name and Address:
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
3. Contact Person and Phone Number:
Rachel Cohen, Principal Planner
805-781-7574
4. Project Location:
Airport Area Specific Plan area, generally bounded by South Higuera Street to the west,
Meissner Lane to the north, Broad Street to the east, and Buckley Road to the south, in
San Luis Obispo, CA
5. Project Applicant and Representative Name and address:
City of San Luis Obispo
Community Development Department
919 Palm Street
San Luis Obispo, CA 93401
6. General Plan Designation:
Services & Manufacturing
7. Zoning:
Service Commercial (C-S) and Manufacturing (M)
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8. Description of the Project:
The Airport Area Specific Plan (AASP) is a land use program with policies, goals,
guidelines and infrastructure financing strategies to guide future development to ensure
land use compatibility within the AASP planning area. The AASP was adopted in 2005
and has been amended several times since then in response to changing conditions or
opportunities unforeseen at the time of its adoption. The proposed project would amend
the AASP to allow for mixed-use development (as defined in the City’s Municipal Code)
with a conditional use permit within parcels designated as either Service Commercial (C-
S) or Manufacturing (M).
The AASP does not currently allow mixed-use development. The underlying reason for
this was because of the area’s proximity to the San Luis Obispo County Airport, and the
established safety and noise areas that limited or prohibited noise sensitive residential
uses or high density residential development. The southern portion of the City at that time
was also viewed as the area most appropriate for industrial uses. In 2021, the San Luis
Obispo County Airport Land Use Commission (ALUC) amended and restated the Airport
Land Use Plan (ALUP) to address new technical information related to safety and noise,
which resulted in a refinement of areas subject to land use restrictions under the ALUP,
including areas within the AASP. As a result, there is now substantial area within the AASP
where the land use restrictions have changed related to airport safety and noise, and
creates opportunities for mixed-use developments.
No development would occur directly as a result of this action, which is simply a
modification of existing land use requirements under the AASP. Future development
under the modified land use requirements could occur as a result of individual project
applications that must be approved by the City of San Luis Obispo through its normal
development and conditional use permit review processes. However, the magnitude and
timing of such development is speculative at this time, and would be influenced by a
variety of issues, including market demand, property owner desire to develop,
consistency with the ALUP, and potential environmental constraints that may apply to
specific parcels where project development applications are under consideration.
The Project Area includes all parcels designated as Service Commercial (C-S) or
Manufacturing (M) within the 1,200-acre AASP planning area. Figure 1 shows the location
of C-S and M designated parcels within the AASP.
9. Project Entitlements Requested:
No project-level entitlements are requested or would occur as a result of this action.
Instead, the resulting amendment would allow mixed-use development, subject to specific
findings, with a conditional use permit in portions of the Airport Area Specific Plan
currently designated as Service Commercial (C-S) and Manufacturing (M), consistent with
the requirements of the City’s Zoning Regulations, as they currently apply to C-S and M
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designated lands in the remainder of the City. The reason this amendment is necessary
is because as currently written, the AASP does not allow mixed-use development.
Figure 1: Existing Land Use Designations in the Airport Area Specific Plan
Development under the modified land use requirements would result from individual
project applications that must be approved by the City of San Luis Obispo through its
normal development and conditional use permit review processes. Proposed
modifications to the Airport Area Specific Plan are described below in detail under the
heading “New Information and Updated Project Elements.”
10. Previous Environmental Review:
The Final Programmatic EIR for the Airport Area and Margarita Area Specific Plans and
Related Facilities Master Plans (“Final EIR”, or “AASP Final EIR”) addressed future
development within the Airport Area Specific Plan. The Final EIR was certified in
September 2003, and has provided the basis for evaluating the impacts of future
development within the AASP area. Subsequent amendments to the AASP were subject
to separate CEQA evaluations to address the potential impacts stemming from those
amendments. In a similar manner, the analysis in this Addendum tiers from the original
Final EIR.
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Individual projects that may be proposed under the AASP as amended would be subject
to review under the California Environmental Quality Act (CEQA) as appropriate on a
project-by-project basis.
The County of San Luis Obispo Airport Land Use Commission conducted an Initial Study
and prepared a Negative Declaration for the 2021 update of its Airport Land Use Plan
(ALUP) (SCH: 2021030474). That environmental document was used to inform the
conclusions contained in this addendum.
11. Purpose of the Addendum:
Section 15164 of the State CEQA Guidelines allows a lead agency to prepare an
addendum to a Final EIR when only “minor technical changes or additions” are necessary
to address the effects of a minor change to the approved project since the Final EIR was
certified. In addition, the lead agency is required to explain its decision not to prepare a
subsequent EIR pursuant to State CEQA Guidelines Section 15162, which requires
subsequent EIRs when proposed changes would require major revisions to the previous
EIR “due to the involvement of new significant environmental effects or a substantial
increase in the severity of previously identified significant effects.”
Subsequent to certification of the AASP Final EIR, additional information has been
identified which provides a more consistent Citywide approach to mixed-use
development, specifically as it is allowed in the C-S and M zones. In 2021, the San Luis
Obispo County Airport Land Use Commission (ALUC) updated its Airport Land Use Plan
(ALUP) to address new technical information related to safety and noise, which resulted
in a refinement of areas subject to land use restrictions under the ALUP and has created
opportunities for mixed-use developments within the AASP. The proposed action requires
an amendment to the AASP to allow for mixed-use in the C-S and M zones subject to a
Conditional Use Permit. This project is described in more detail in subsequent sections of
this EIR Addendum.
The purpose of this Addendum is to document the proposed change to the AASP, and to
confirm that this change would not result in any new or more severe significant
environmental effects not previously analyzed in the Final EIR, and would not modify any
existing mitigation requirements described in that document.
The evaluation below discusses the issue areas that are relevant to this Addendum and
covered by the previously approved Final EIR. The evaluation concludes that no new
environmental effects are created and that there is no increase in the severity of
previously identified significant effects.
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12. Addendum Requirements:
Pursuant to Section 21166 of CEQA and Section 15162 of the State CEQA Guidelines,
when a lead agency has adopted an EIR for a project, a subsequent EIR does not need
to be prepared for the project unless the lead agency determines that one or more of the
following conditions are met:
1. Substantial project changes are proposed that will require major revisions of the
previous EIR due to the involvement of new significant environmental effects or a
substantial increase in the severity of previously identified significant effects;
2. Substantial changes would occur with respect to the circumstances under which the
project is undertaken that require major revisions to the previous EIR due to the
involvement of new significant environmental effects or a substantial increase in the
severity of previously identified significant effects; or
3. New information of substantial importance that was not known and could not have
been known with the exercise of reasonable diligence at the time the previous EIR
was adopted shows any of the following:
a. The project will have one or more significant effects not discussed in the
previous EIR; or
b. Significant effects previously examined will be substantially more severe than
identified in the previous EIR; or
c. Mitigation measures or alternatives previously found not to be feasible would in
fact be feasible, and would substantially reduce one or more significant effects
of the project, but the project proponent declines to adopt the mitigation
measures or alternatives; or
d. Mitigation measures or alternatives that are considerably different from those
analyzed in the previous EIR would substantially reduce one or more significant
effects on the environment, but the project proponent declines to adopt the
mitigation measures or alternatives.
Preparation of an Addendum to an EIR is appropriate when none of the conditions
specified in Section 15162 (above) are present and some minor technical changes to the
previously certified EIR are necessary to address minor changes to an approved project.
Because the new information would not result in any new or more severe significant
impacts, an Addendum is the appropriate CEQA document.
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CURRENT REGULATORY FRAMEWORK FOR C-S AND M ZONES
San Luis Obispo County Airport Land Use Plan
Mixed-use development was not originally allowed at the time of the AASP’s adoption in 2005
because of the area’s proximity to the San Luis Obispo County Airport, and the established
safety and noise areas that limited or prohibited noise sensitive residential uses or high density
residential development. The southern portion of the City at that time was also viewed as the
area most appropriate for industrial uses. In 2021, the San Luis Obispo County Airport Land
Use Commission (ALUC) updated its Airport Land Use Plan (ALUP) to address new technical
information related to safety and noise, which resulted in a refinement of areas subject to land
use restrictions under the ALUP, including areas within the AASP. As a result, there is now
substantial area within the AASP where the land use restrictions have changed related to airport
safety and noise and creates opportunities for mixed-use developments..
Current AASP Requirements
For the reasons described above related to the ALUP, the AASP does not currently allow mixed-
use development in either the Service Commercial (C-S) or Manufacturing (M) zones. As stated
in Section 4.2.2 of the AASP, “areas designated Service Commercial are generally for storage,
transportation, and wholesaling type uses, as well as certain retail sales and business services
that may be less appropriate in other commercial designations.” Similarly, Section 4.2.3
summarizes the intent of the Manufacturing designation as areas “for assembly, fabrication,
storage and distribution, and sales and service type uses that have little or no direct trade with
local consumers.”
Table 4-3 of the AASP shows the allowed uses within each land use designation. Mixed-use is
not allowed under either designation.
Other Relevant Regulatory Setting
There is an existing regulatory framework for allowing mixed-use in non-residential zones
Citywide. Mixed-use development is allowed in the C-S and M zones in all parts of the City
except within the AASP and other specific plan areas. Within both designations, the Zoning
Regulations allow for residential development up to 24 density units per acre (Municipal Code
Sections 17.36.020 and 17.40.020).
Final Environmental Impact Report
The 2003 Final EIR examined the policy framework and conceptual development under the
AASP at a programmatic level. That document did not include project-specific analysis of the
parcels potentially impacted by the proposed action. The FEIR impact analysis was general,
and any required mitigation for key issue areas was programmatic, in consideration of cumulative
development that might occur under the AASP. Please refer to the section below entitled
“Analysis Of The Proposed Project In The Context Of The Final EIR” for further discussion of
relevant issues and how they relate to the proposed Specific Plan Amendment
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NEW INFORMATION AND UPDATED PROJECT ELEMENTS
NEWLY DISCOVERED INFORMATION
In recent years, the demand for housing in general, and affordable housing in particular, has
risen dramatically in San Luis Obispo, as it has elsewhere. In response, the City’s 2014 General
Plan Land Use Element update reflects this increased demand, and includes several large areas
for increased residential development, projects that have since been approved and are in the
process of being completed. At the same time, the City has tried to address these issues by
supporting mixed-use development, in areas where demand for non-residential development in
Service Commercial or Manufacturing designated land has declined. The result is that the City
allows mixed-use by right in the C-S and M zones outside the AASP. However, the AASP does
not allow mixed-use development, because of previous safety and noise restrictions included in
the ALUP. As described above, the 2021 update of the ALUP removed those restrictions that
limited or prohibited mixed-use development.
The proposed project responds to the changes in the ALUP and increased housing demand in
an evolving market by allowing for mixed-use development in the C-S and M land use
designations in the AASP with the approval of a conditional use permit.
As discussed previously, the underlying reason why mixed-use development was not allowed in
the AASP is because of the area’s proximity to the San Luis Obispo County Airport, and safety
and noise conflicts that could arise if residential development were allowed. In 2021, the San
Luis Obispo County Airport Land Use Commission (ALUC) updated its Airport Land Use Plan
(ALUP) to address new technical information related to safety and noise, which resulted in a
refinement of areas subject to land use restrictions under the ALUP, including areas within the
AASP. As a result, there is substantial area where the land use restrictions have changed related
to airport safety and noise.
CHANGED BASELINE CONDITIONS AND UPDATED PROJECT ELEMENTS
The proposed project would amend the AASP, modifying various aspects of the plan in order to
facilitate mixed-use development with approval of a conditional use permit in the C-S and M land
use designations. It would not change any existing land use designation, nor would it result in
more or less land designated as either C-S or M. Instead, it would modify existing language and
tables in various parts of the existing AASP in order to facilitate mixed-use within these land use
designations.
A detailed land use inventory was prepared in 2024 to verify the amount of C-S or M designated
lands within the planning area. Table 1 below summarizes the results of the 2024 land use
inventory for each designation, showing the total acreage of vacant and developed parcels in
these two land use designations.
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Table 1. Summary of 2024 Land Use Inventory
C-S and M Parcels in the AASP
Land Use Designation
Acreage
Developed (or entitled) Vacant Total
Service Commercial (C-S) 140.4 85.6 226.0
Manufacturing (M) 94.7 20.4 115.1
Total 235.1 106.0 341.1
Portions of land designated as either C-S or M are constrained from considering mixed-use
development. Some of this constrained area remains within airport land use safety zones under
the ALUP that do not allow for residential uses. Other parcels are too small or configured in such
a way to make development challenging. Depending on the location, a variety of environmental
constraints could present other challenges, including drainage features, steep slopes, or the
potential for sensitive biological or cultural resources. Some parcels are adjacent to existing
industrial land uses that produce odors or noise, which could make them less attractive for mixed-
use development. Finally, many of these parcels are already developed with other uses, or are
entitled for development. It is likely that only a few of these more constrained parcels will
eventually support mixed-use development.
There is no specific mixed-use development project proposed at this time, but the amendment
would allow the City to process and potentially approve applications that propose such
development. However, the magnitude and timing of such development cannot be known at this
time, and would be influenced by a variety of issues, including market demand, property owner
desire to develop, and potential environmental constraints that may apply to specific parcels
where project development applications are under consideration. For these reasons, it is
speculative to determine what the residential buildout potential of this action is at this time, or
how it might alter the non-residential buildout assumptions made in the AASP.
If mixed-use development were to occur, it would be based on the maximum density currently
allowed under the Zoning Regulations, which is 24 density units per acre.
ANALYSIS OF THE PROPOSED PROJECT IN THE CONTEXT OF THE FINAL EIR
The updated project elements described above were not considered in the 2003 Final EIR, and
so are analyzed here. The 2003 Final EIR examined the policy framework and conceptual
development under the AASP at a programmatic level, which is also appropriate for the currently
proposed Specific Plan Amendment. The following analysis examines the proposed project
based on relevant issues from the 2003 Final EIR, with references to FEIR impact statements
as appropriate. Implementation of the proposed project would not change any of the conclusions
in the Final EIR, the level of significance or severity of any previously identified impact, or
introduce any new mitigation measures. No changes to the Final EIR are required.
Land Use
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The FEIR identifies the following land use impacts that are relevant to the proposed Specific
Plan Amendment. As discussed in Impact LU-3, the Final EIR found the AASP was consistent
with the ALUP in effect at the time of adoption of the AASP. No significant impacts were
identified, and no mitigation was required. The Specific Plan amendment would allow for mixed-
use development with approval of a conditional use permit, subject to potential constraints
contained in the 2021 ALUP update. The County’s environmental document for the 2021 update
(SCH 2021030474) concluded that there would be no land use impacts or hazards associated
with allowing more intensive development in the AASP, or mixed-use or residential projects in
the ALUP area if development regulations in the ALUP were complied with. Individual
development projects within the AASP would need to be consistent with any land use restrictions
set forth in the ALUP. No new impact would occur.
Impact LU-4 discussed compatibility with surrounding land uses. No conflicts with surrounding
uses were identified in the AASP, so impacts were less than significant, and no mitigation was
required. Individual development projects within the AASP would need to be compatible with
adjacent development, a determination that would be made through development and
conditional use permit review processes and project-specific CEQA analysis for any such future
action. No new programmatic impacts would occur.
Hydrology and Water Quality
Impact H-5 discussed exposure of people and/or property to flood hazards. The FEIR found that
the conversion of land to urban uses has the potential to increase flooding hazards if new
buildings were constructed within the 100-year flood hazard area. However, the specific plan
includes explicit requirements for flood channel improvements that will avoid flooding impacts by
providing enhanced control of floodwaters. This impact was considered less than significant.
Mixed-use development would be evaluated individually under CEQA, and would be required to
comply with existing regulations related to flood hazards and water quality. No new
programmatic impacts would occur, nor would there be an increase in severity of any existing
impact.
Traffic and Circulation
Since the time the AASP FEIR was prepared, CEQA analysis related to this issue has been
modified considerably. The focus of CEQA review is now based primarily on a study of Vehicle
Miles Traveled (VMT), which can have potential impacts on regional air quality and greenhouse
gas emissions. These issues were not examined in the Final EIR.
One purpose of mixed-use development is to reduce commute distances between residences
and work places. In some cases, mixed-use development could make it possible for some
residents to walk to work, which would potentially reduce VMT. In those instances, there would
be a net positive effect on greenhouse gas emissions and air quality relative to what would
otherwise happen under the AASP. Future individual development projects within the AASP
would be evaluated on a case by case basis through a project-specific CEQA analysis. No new
programmatic impacts related to these issues would occur.
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Other transportation issues that were studied in the FEIR related to roadway Levels of Service
(LOS), which is a metric no longer considered in CEQA documents. Instead, these are issues
that would be appropriately addressed through the development and conditional use permit
review processes, with recommendations for potential roadway improvement made through
engineering studies.
Air Quality
The FEIR identified impacts related to both short-term construction emissions and long-term
operations emissions. Short-term construction emissions were found to be significant but
mitigable at a programmatic level, with mitigation taking the form of following a variety of
standard construction management techniques and following the existing regulatory framework
set forth by the Air Pollution Control District (APCD). The impacts of specific development
projects would be analyzed and mitigated as needed on a case by case basis.
Similarly, long-term operational impacts were also found to be less than significant with
programmatic mitigation. The FEIR included the following relevant mitigation measure:
Mitigation Measure AIR-2.1. Implement Growth-Phasing Schedule. The City will
implement a growth-phasing schedule for the Airport area, to assure that nonresidential
development in the urban area does not exceed the pace of residential development.
The consideration of mixed-use development in the Airport Area is consistent with this mitigation
requirement, as it allows for greater flexibility and opportunities to approve residential
development in balance with non-residential development. Future individual development
projects within the AASP would be evaluated on a case by case basis through a project-specific
CEQA analysis. No new programmatic impacts related to this issue would occur.
Noise
The FEIR examined relevant programmatic impacts related to traffic and aircraft noise, but found
them to be less than significant. For aircraft noise, this was because future development under
the AASP was determined to be consistent with the ALUP. For traffic noise, it was determined
that the City’s General Plan Noise Element included sufficient implementation requirements and
strategies to ensure that noise would be mitigated on a project-by-project basis as appropriate,
through the recommendations of project-specific noise studies. Future individual development
projects within the AASP would be evaluated on a case by case basis through a project-specific
CEQA analysis. The County’s environmental document for the 2021 update (SCH 2021030474)
concluded that there would be no noise impacts or hazards associated with allowing more
intensive development in the AASP, including mixed-use or residential projects in the ALUP
area, if development regulations in the ALUP were complied with. No new programmatic
impacts related to this issue would occur.
Public Services and Utilities
The FEIR examined potential programmatic impacts related to the provision of water and
wastewater services from buildout under the AASP, but concluded these would be less than
significant because projects would be required to follow the regulatory provisions included in the
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General Plan, AASP and relevant utilities master plans. Similarly, programmatic impacts related
to storm drainage were considered less than significant because projects would be required to
follow the provisions of the Storm Drain Master Plan. Impacts related to solid waste disposal
were also considered less than significant, as projects would be required to follow regulatory
provisions included in the General Plan and AASP.
Impacts related to law enforcement were considered less than significant, as future staffing and
facilities would be addressed through fiscal studies as needed. Impacts to fire protection
services were also considered less than significant with the following mitigation measure:
PS-1. New Fire Protection Personnel. To mitigate the impacts associated with buildout of
the [AASP], a sufficient number of fire protection personnel should be hired to maintain a
ratio of one firefighter for every 1,000 residents.
Determining the appropriate level of public services staff is typically addressed in the City’s
annual budget cycles, with recommendations resulting from studies to service impacts that are
projected to occur based on reasonably foreseeable cumulative development. The proposed
project does not facilitate any specific development project, so the magnitude of potential long-
term impacts to public services is speculative, and would be addressed on a case-by-case basis
as development projects are proposed. No new programmatic impacts related to this issue
would occur.
Impacts to schools were found to be less than significant. Mitigation is limited to the payment of
statutory fees, and no additional school-related impact fees may be imposed above the limits
established in statute (Government Code Section 65595 et seq). No new programmatic impacts
related to this issue would occur.
Impacts to parks and recreation were found to be less than significant, as buildout of the AASP
would not increase demand over the established park service standard of 10 acres per 1,000
residents. The amount of residential development that might occur under the mixed-use
provisions of the project is speculative, and would be limited by a combination of market factors,
property owner desire, lot configuration, and environmental constraints. Impacts to parks and
recreation would be considered on a case by case basis as individual development projects are
proposed. No new programmatic impacts related to this issue would occur.
Other Issues
The proposed project would not introduce new development into areas that were not already
planned for urban uses. Therefore, for all other issues related to resource protection (biological
resources, cultural resources, agricultural resources, and the exposure to hazardous materials),
the potential impact of new development would not change, so the existing impact analysis for
each issue would also remain unchanged. No new programmatic impacts related to these issues
would occur.
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DETERMINATION
In accordance with Section 15164 of the State CEQA Guidelines, the City of San Luis Obispo
has determined that this Addendum to the certified Final EIR is necessary to document changes
or additions that have occurred since the Final EIR was originally certified. Based on the analysis
of the proposed project, no new changes to the Final EIR are required. The proposed project
would not result in any new significant environmental effects or a substantial increase in the
severity of previously identified significant effects. Additionally, no new information of substantial
importance that was not known and could not have been known with the exercise of reasonable
diligence at the time the previous Final EIR was adopted has been identified.
The preparation of a subsequent environmental document is not necessary because:
1. None of the circumstances included in Section 15162 of the CEQA Guidelines have
occurred which require a subsequent environmental document:
a. The project changes do not result in new or substantially more severe
environmental impacts.
b. The circumstances under which the project is undertaken will not require major
changes to the IS/MND.
c. The modified project does not require any substantive changes to previously
approved mitigation measures.
2. The changes are consistent with City General Plan goals and polices that promote
provision of additional housing, particularly affordable housing, within the City.
3. The changes are consistent with City goals related to mixed-use that would encourage
alternative forms of transportation and reduce Vehicle Miles Traveled (VMT), which
relates to reducing air emissions, including greenhouse gas emissions.
The City has reviewed and considered the information contained in this Addendum and finds
that the preparation of subsequent CEQA analysis that would require public circulation is not
necessary. This Addendum does not require circulation because it does not provide significant
new information that changes the adopted Final EIR in a way that deprives the public of a
meaningful opportunity to comment upon a substantial adverse environmental effect of the
project or a feasible way to mitigate or avoid such an effect. The City shall consider this
Addendum with the certified Final EIR as part of the basis for potential approval of the proposed
Specific Plan Amendment.
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