HomeMy WebLinkAboutItem 4a. Review of a Planned Development Amendment to revoke the Planned Development Overrlay related to a development project proposed at 1144 Chorro Street for 7 properties
PLANNING COMMISSION AGENDA REPORT
SUBJECT: REVIEW OF A PLANNED DEVELOPMENT AMENDMENT TO REVOKE
THE PLANNED DEVELOPMENT OVERLAY, RELATED TO A DEVELOPMENT
PROJECT PROPOSED AT 1144 CHORRO STREET, FOR SEVEN (7) AFFECTED
PROPERTIES. THE PROJECT IS EXEMPT FROM ENVIRONMENTAL REVIEW.
BY: Hannah Hanh, Associate Planner FROM: Tyler Corey, Deputy Director
Phone Number: (805) 781-7432 Phone Number: (805) 781-7169
Email: hhanh@slocity.org Email: tcorey@slocity.org
PROJECT ADDRESSES: 1144 Chorro Street; 895, 898, and 973 Higuera Street; 876
and 890 Marsh Street; and 868 and 870 Monterey Street
APPLICATION NUMBER: PDEV-0428-2023
APPLICANTS / AFFECTED PROPERTY OWNERS: Copeland Properties, Jamestown
Premier Retail LP, and NKT Commercial
REPRESENTATIVE: Mark Rawson (Copeland Properties and Jamestown Premier Retail
LP)
RECOMMENDATION
Recommend the City Council introduce and adopt an Ordinance revoking the Planned
Development Overlay (Ordinance No. 1687 [2020 Series]), related to a development
project proposed at 1144 Chorro Street, and amending the Zoning Map to rezone the
seven (7) associated properties from C-D-PD and C-D-H-PD to C-D and C-D-H,
respectively. The project is exempt from environmental review under Section 15301(b)(3)
(General Rule Exemption) of the California Environmental Quality Act (CEQA) Guidelines.
1.0 SUMMARY
On behalf of Copeland Properties (Copeland), Jamestown Premier Retail LP
(Jamestown), and NKT Commercial (NKT) (Applicants and affected Property Owners1),
Mark Rawson (Representative) has submitted a Planned Development (PD) Amendment
(PDEV-0428-2023) to revoke the PD Overlay (Ordinance No. 1687) for seven (7)
properties located at 1144 Chorro Street; 895, 898, and 973 Higuera Street; and 876 and
890 Marsh Street (Attachment B, Figure 1).
1 The affected properties are owned by the three (3) Applicants, as follows:
Copeland – 973 Higuera Street
Jamestown – 895 and 898 Higuera; 876 and 890 Marsh Street; and 868 and 870 Monterey
Street
NKT – 1144 Chorro Street
Meeting Date: 7/9/2025
Item Number: 4a
Time Estimate: 30 minutes
Page 9 of 23
Item 4a
PDEV-0428-2023
Planning Commission Report – July 9, 2025
Revocation of the PD Overlay would rezone these properties from the Downtown
Commercial Zone with Planned Development Overlay (C-D-PD) and Downtown
Commercial Zone with Historic and Planned Development Overlays (C-D-H-PD) to C-D
and C-D-H, respectively. The approval of the PD Overlay was intended to facilitate a
mixed-use development proposed at 1144 Chorro Street (1144 Chorro Project). However,
the Applicants are no longer interested in pursuing th is project due to changes in
circumstances, and are requesting to revoke the PD Overlay, including its associated
requirements, to reflect current interests and provide clarity in applicable regulations for
these seven (7) affected properties.
2.0 PROJECT SITE
Figure 1 – Area of the PD Overlay2
2 Revocation of the PD Overlay would result in the rezoning of the seven (7) properties outlined
in Figure 1. Permanent preservation of an off-site building at 868 and 870 Monterey Street was
identified and required as part of the original project approval. However, since the property at 868
and 870 Monterey is offsite and not within the PD Overlay, there would be no changes to its zone.
Page 10 of 23
Item 4a
PDEV-0428-2023
Planning Commission Report – July 9, 2025
3.0 PRIOR REVIEWS / ACTIONS
After a series of public hearings with the Architectural Review Commission, Cultural
Heritage Committee, Planning Commission, and City Council in 2019 – 2020, the City
Council adopted Ordinance No. 16873 approving the PD Overlay (PDEV-0509-2019 and
EID-0475-2019) for seven (7) properties on September 1, 2020 (Staff Report, Minutes).
Approval of Ordinance No. 1687 was accompanied by Resolution No. 11160, which is the
approval of the accompanying 1144 Chorro Project (ARCH-1687-2018, PDEV-0509-
2019, and EID-0475-2019).
4.0 CURRENT STATUS
Following the entitlement approvals in 2020, the following changes have occurred:
In October 2023, Jamestown sold the property at 1144 Chorro Street to NKT.
As the new Property Owner of 1144 Chorro, NKT is not interested in pursuing the
1144 Chorro Project and has obtained entitlement and building permit approvals
to allow different uses at the site4.
The approval of the 1144 Chorro Project (Resolution No. 11160) expired on August
28, 20255. Therefore, the PD overlay is not needed and unnecessarily restricts
development of the affected properties.
There is interest in developing other properties within the PD Overlay on an
individual basis.
Due to these changes in circumstances, the three (3) current Property Owners of all seven
(7) affected properties are in agreement to revoke the PD Overlay (Attachment B).
3 The application of development standards, including the calculation for maximum residential
density, generally follows the lot lines of an individual lot and does not extend to the greater
boundaries of a project site, which may comprise of multiple lots, unless otherwise allowed
through a discretionary approval (e.g., PD Overlay, Specific Plan, etc.). To facilitate the 1144
Chorro Project at its desired density, approval of a PD Overlay was required to allow the transfer
of (unused) density credits between neighboring properties. In accordance with San Luis Obispo
Municipal Code (SLOMC) Section 17.70.040(B)(1), this PD Overlay identified participating
properties at 895, 898, and 973 Higuera Street and 876 and 890 Marsh Street that were willing to
transfer their respective density credits in order to consolidate residential development potential
at 1144 Chorro Street.
4 A Minor Use Permit (USE-0455-2024) was approved for a proposed office use on October 24,
2024, and a building permit (BLDG-0088-2025) was issued for the associated tenant
improvements on April 28, 2025. This building is intended for the combined function of Cal Poly’s
Mustang Shop, Center for Innovation [CIE], and Small Business Development Center [SBDC].
5 The expiration date of this project approval was automatically tolled and extended by multiple
State and Local emergency ordinances during the COVID-19 Pandemic. The last of these actions
includes the City Council’s adoption of Resolution No. 11396, which terminated the Declaration
of a Local Emergency for the COVID-19 Pandemic and provided an automatic 18-month time
extension for all discretionary approvals until August 28, 2024. An additional time extension was
not requested as allowed by SLOMC Section 17.104.070, and this approval expired on August
28, 2024.
Page 11 of 23
Item 4a
PDEV-0428-2023
Planning Commission Report – July 9, 2025
5.0 PLANNING COMMISSION’S PURVIEW
Per SLOMC Section 17.48.100, the City Council may remove the PD designation by
ordinance in accordance with the rezoning procedure if the development plan is not
carried out. The Applicant has applied for a PD Amendment to revoke the overlay as
described in SLOMC Chapter 17.124. As part of this review, the Planning Commission is
to provide a recommendation to the City Council on whether to approve or deny the
request. The City Council would review the request, including the Planning Commission’s
recommendation, and make the final decision.
6.0 PROJECT ANALYSIS
Staff has reviewed the request and recommends approval of the revocation because the
required findings, per SLOMC Section 17.48.070(C), previously made for Ordinance No.
1687 would no longer be applicable and/or met, based on the following:
The purpose of adopting this PD Overlay in 2020 was to facilitate an accompanying
project at 1144 Chorro Street;
Approval of that accompanying project at 1144 Chorro Street (ARCH-1687-2018,
PDEV-0509-2019, and EID-0475-2019) has expired;
Any community benefits and mandatory project features required of, or resulting
from, the development project would no longer occur because the accompanying
project approval has expired and the property owner of 1144 Chorro Street does
not wish to re-initiate;
All current owners of the seven (7) affected properties do not wish to re-initiate the
project as previously approved (see Attachment B);
The property owner of 1144 Chorro Street has actively pursued entitlement and
building permit approvals for different uses at the property;
The PD Overlay encumbers seven (7) properties in downtown , not under common
ownership, by referring to an expired project approval on the Zoning Map; and
Revocation of the PD Overlay would amend and clean up the Zoning Map by
removing the reference to an expired project approval and its associated
requirements (e.g., mitigation measures from the environmental review; deviations
allowed by the PD overlay; conditions of approval, etc.). Revocation would provide
clarity in applicable regulations of the affected properties and remove unnecessary
restrictions on development thereof.
If revocation of the PD Overlay is approved by the City Council, the seven (7) affected
properties would be rezoned from C-D-PD and C-D-H-PD to C-D and C-D-H, respectively.
Any future development proposed on these properties would be subject to requirements
of the underlying C-D Zone, and H Overlay as appropriate.
Page 12 of 23
Item 4a
PDEV-0428-2023
Planning Commission Report – July 9, 2025
7.0 PUBLIC ENGAGEMENT
In accordance with Government Code Section 65854, public notice was provided at least
20 days before this Planning Commission hearing. The public has the opportunity to
comment on the item at and/or before the hearing. Following the Planning Commission’s
review, there will be public hearings for review by the City Council, and legal notices will
be provided as required for each hearing.
8.0 ENVIRONMENTAL REVIEW
The project is exempt from environmental review under Section 15301(b)(3) (General
Rule Exemption) of the California Environmental Quality Act (CEQA) Guidelines. This
“Common Sense” exemption states that CEQA only applies to projects that have the
potential for causing significant effect on the environment. Since the scope of this request
is limited to an amendment on the Zoning Map and does not facilitate any development
project, it would not have an effect on the environment. Additionally, the mitigation
measures required as part of the PD Overlay adoption in 2020 were only applicable to
the development project for 1144 Chorro Street as proposed at the time. Should there be
any new development proposed at 1144 Chorro Street or any of the other affected
properties, those projects would be evaluated on an individual basis for consistency and
compliance with all applicable regulations in effect at that time, including environmental
review.
9.0 ACTION ALTERNATIVES
1. Continue review of the project. An action to continue the item should include a
detailed list of additional information or analysis required to make a
recommendation.
2. Recommend denial of the project. An action denying the project should include
findings that cite the basis for denial and reference any inconsistency(ies) with the
General Plan, Zoning Regulations, or other policy documents.
10.0 ATTACHMENTS
A. Draft Planning Commission Resolution
B. Request for Revocation of the PD Overlay
Page 13 of 23
Page 14 of 23
RESOLUTION NO. PC-XXXX-25
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
SAN LUIS OBISPO RECOMMENDING THE CITY COUNCIL INTRODUCE
AND ADOPT AN ORDINANCE REVOKING THE PLANNED
DEVELOPMENT OVERLAY (ORDINANCE NO. 1687 [2020 SERIES]),
RELATED TO A DEVELOPMENT PROJECT PROPOSED AT 1144
CHORRO STREET, FOR SEVEN (7) PROPERTIES AND AMENDING
THE ZONING MAP TO REZONE THE ASSOCIATED PROPERTIES
FROM C-D-PD AND C-D-H-PD TO C-D AND C-D-H, RESPECTIVELY.
THE PROJECT IS EXEMPT FROM ENVIRONMENTAL REVIEW AS
REPRESENTED IN THE PLANNING COMMISSION AGENDA REPORT
AND ATTACHMENTS DATED JULY 9, 2025 (1144 CHORRO STREET;
895, 898, AND 973 HIGUERA STREET; 876 AND 890 MARSH STREET;
AND 868 AND 870 MONTEREY STREET; PDEV-0428-2023)
WHEREAS, the City Council of the City of San Luis Obispo conducted a public
hearing in the Council Chambers of City Hall, 990 Palm Street, San Luis Obispo,
California, on September 17, 2019, initiating the project review with consideration of the
Community Benefits and Mandatory Project Features for the Planned Development
Overlay (PD Overlay), pursuant to a proceeding instituted under ARCH-1687-2018,
PDEV-0509-2019, and EID-0475-2019; Mark Rawson, applicant; and
WHEREAS, the Architectural Review Commission of the City of San Luis Obispo
conducted a web-based public hearing on June 1, 2020, recommending approval of the
project with direction to the Planning Commission for consistency with the Community
Design Guidelines, pursuant to a proceeding instituted under ARCH-1687-2018, PDEV-
0509-2019, and EID-0475-2019; Mark Rawson, applicant; and
WHEREAS, the Cultural Heritage Committee of the City of San Luis Obispo
conducted a web-based public hearing on June 22, 2020, recommending approval of the
project with direction to the Planning Commission for consistency with the Historic
Preservation Ordinance and Historic Preservation Program Guidelines, pursuant to a
proceeding instituted under ARCH-1687-2018, PDEV-0509-2019, and EID-0475-2019;
Mark Rawson, applicant; and
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a
web-based public hearing on July 8, 2020, recommending approval of the project with
direction to the City Council for consistency with the General Plan and Zoning
Regulations, pursuant to a proceeding instituted under ARCH-1687-2018, PDEV-0509-
2019, and EID-0475-2019; Mark Rawson, applicant; and
Page 15 of 23
WHEREAS, the City Council of the City of San Luis Obispo conducted a web-
based public hearing on August 18, 2020, introducing an ordinance amending the Zoning
Regulations Map to change the zoning designation of seven (7) properties from C-D-H to
C-D-H-PD and C-D to C-D-PD for a PD Overlay; and approving the development of a six-
story mixed-use building consisting of approximately 30,000 square feet of
commercial/office space and 50 residential dwelling units pursuant to a proceeding
instituted under ARCH-1687-2018, PDEV-0509-2019 and EID-0475-2019; Mark Rawson,
applicant; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a web-
based public hearing on September 1, 2020, approving the PD Overlay for seven (7)
properties within the Downtown Commercial Zone and adopting an ordinance (Ordinance
No. 1687 [2020 Series]) amending the Zoning Regulations Map to change the zoning
designation of the associated properties from C-D to C-D-PD and C-D-H to C-D-H-PD
pursuant to a proceeding instituted under PDEV -0509-2019 and EID-0475-2019; Mark
Rawson, applicant; and
WHEREAS, the City Council’s approval of a six-story mixed-use development
consisting of approximately 30,000 square feet of commercial/office space and 50
residential dwelling units, instituted under ARCH-1687-2018, PDEV-0509-2019 and EID-
0475-2019, expired on August 28, 2024, and the property owner of 1144 Chorro Street
does not wish to re-initiate; 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 July 9, 2025, for the purpose of recommending the City Council revoke the
PD Overlay related to the development project proposed at 1144 Chorro and amend the
Zoning Map to rezone the seven (7) associated properties from C-D-PD and C-D-H-PD
to C-D and C-D-H, pursuant to a proceeding under PDEV-0428-2023; Copeland
Properties, Jamestown Premier Retail LP, and NKT Commercial, applicants; and
WHEREAS, notices of said public hearing were made at the time and in the
manner required by the law; and
WHEREAS, the Planning Commission has duly considered all evidence, including
testimony of the applicant and interested parties and evaluation and recommendations
provided by staff, presented at said hearing.
NOW, THEREFORE, BE IT RESOLVED, by the Planning Commission of the City
of San Luis Obispo as follows:
Page 16 of 23
SECTION 1. Findings. Based upon all evidence, the Planning Commission
recommends approval of the revocation of the PD Overlay because required findings
previously made for Ordinance No. 1687 would no longer be applicable and/or met, based
on the following:
1. The purpose of adopting this PD Overlay in 2020 was to facilitate an
accompanying project at 1144 Chorro Street;
2. Approval of that accompanying project at 1144 Chorro Street (ARCH-1687-
2018, PDEV-0509-2019, and EID-0475-2019) has expired;
3. Any community benefits and mandatory project features required of, or
resulting from, the development project would no longer occur because the
accompanying project approval has expired and the property owner of 1144
Chorro Street does not wish to re-initiate;
4. All current owners of the seven (7) affected properties do not wish to re-initiate
the project as previously approved;
5. The property owner of 1144 Chorro Street has actively pursued entitlement
and building permit approvals for different uses at the property;
6. The PD Overlay encumbers seven (7) properties in downtown, not under
common ownership, by referring to an expired project approval on the Zoning
Map; and
7. Revocation of the PD Overlay would amend and clean up the Zoning Map by
removing the reference to an expired project approval and its associated
requirements (e.g., mitigation measures from the environmental review;
deviations allowed by the PD overlay; conditions of approval, etc.). Revocation
would provide clarity in applicable regulations of the affected properties and
remove unnecessary restrictions on development thereof.
SECTION 2. Environmental Determination. The project is exempt from
environmental review under Section 15301(b)(3) (General Rule Exemption) of the
California Environmental Quality Act (CEQA) Guidelines. This “Common Sense”
exemption states that CEQA only applies to projects that have the potential for causing
significant effect on the environment. Since the scope of this request is limited to an
amendment on the zoning map and does not facilitate any deve lopment project, it would
not have an effect on the environment. Additionally, the mitigation measures required as
part of the PD Overlay adoption in 2020 were only applicable to the development project
for 1144 Chorro Street as proposed at the time. Should there be any development
proposed on 1144 Chorro Street or any of the other affected properties, those projects
would be evaluated on an individual basis for consistency and compliance with all
applicable regulations in effect at that time, including environmental review.
Page 17 of 23
SECTION 3. Action. The Planning Commission hereby recommends the City
Council introduce and adopt an ordinance to revoke the PD Overlay, related to a
development project proposed at 1144 Chorro Street, and rezone the seven (7)
associated properties, identified in Exhibit A and incorporated herein, from C -D-H-PD and
C-D-PD to C-D-H and C-D, respectively.
Upon motion of ______________________, seconded by __________________ and
on the following roll call vote:
AYES:
NOES:
RECUSED:
ABSENT:
The foregoing resolution was passed and adopted this 9th day of July 2025.
_____________________________
Tyler Corey, Secretary
Planning Commission
Page 18 of 23
EXHIBIT A
Rezone from C-D-H-PD and C-D-PD to C-D-H and C-D, respectively
Page 19 of 23
Page 20 of 23
973 Higuera
Copelands Properties
1026 Chorro Street
San Luis Obispo, CA 93401
May 14, 2025
Community Development Department
919 Palm Street
San Luis Obispo, CA 93401
Attn: Hannah Hanh, Planning Division
805-781-7432
hhanh@slocity.org
Re: 1144 Chorro Street PD Abandonment
Dear Hannah,
1144 Chorro Street, San Luis Obispo received an entitlement in 2019 for Development Review
approval (ARCH-1687-2018) and environmental review (EID-0475-2019).
We are confirming the following as requested, in connection with removal of the PD Overlay.
x Jamestown is no longer the property owner. The property was sold to NKT Commercial
in October 2023.
x The 1144 Chorro six-story project is not being pursued, and we do not propose any
amendment to the existing entitlement.
x City staff have been asked to move forward with revoking / removing the PD overlay
across all affected parcels (which includes 973 Higuera).
Please feel free to contact me if you need anything further.
Thank you,
Mark Rawson AIA
mark@copelandproperties.com
805-440-4521
Cc: Mike Copeland
ATTACHMENT B
Page 21 of 23
Jamestown SLO Premier Retail LP
1026 Chorro Street, Suite 270
San Luis Obispo, CA 93401
May 14, 2025
Community Development Department
919 Palm Street
San Luis Obispo, CA 93401
Attn: Hannah Hanh, Planning Division
805-781-7432
hhanh@slocity.org
Re: 1144 Chorro Street PD Abandonment
Dear Hannah,
1144 Chorro Street, San Luis Obispo received an entitlement in 2019 for Development Review
approval (ARCH-1687-2018) and environmental review (EID-0475-2019).
We are confirming the following as requested, in connection with removal of the PD Overlay.
x Jamestown is no longer the property owner. The property was sold to NKT Commercial
in October 2023.
x The 1144 Chorro project is not being pursued, and we do not propose any amendment
to the existing entitlement.
x City staff has been asked to move forward with revoking / removing the PD overlay
across all affected parcels (which includes 973 Higuera).
Please feel free to contact me if you need anything further.
Thank you,
Mark Rawson AIA
mark@copelandproperties.com
805-440-4521
Cc: Vivian McDiarmid, Jamestown
David Grey, Jamestown
ATTACHMENT B
Page 22 of 23
ATTACHMENT B
Page 23 of 23
1
1144 Chorro; 895, 898, and 973 Higuera; 876 and 890 Marsh;
and 868 and 870 Monterey
Applicants / Affected Property Owners: Copeland Properties, Jamestown Premier Retail LP, and NKT Commercial
Representative: Mark Rawson
Planning Commission Hearing – July 9, 2025
2
▪Revoke the PD Overlay –
specifically intended for
the 1144 Chorro Project
▪Rezone the 7 affected
properties from C-D-PD
and C-D-H-PD to C-D
and C-D-H
3
▪In 2018, Jamestown proposed a six-story mixed-use development at 1144
Chorro (referred to as the 1144 Chorro Project)
➢PD Overlay required to transfer unused density credits between different
properties
▪In 2020, the City Council approved both the development project and PD
Overlay for 1144 Chorro
4
▪In October 2023, Jamestown sold the property at 1144 Chorro to NKT
▪NKT is not pursuing the 1144 Chorro Project and has obtained permits for
different uses at the site
▪In August 2024, approval of the development project expired
▪Interest in developing properties within the PD Overlay on an individual basis
5
▪PD Overlay is no longer relevant
➢Its adoption is specific to allowing the 1144 Chorro development project
➢Approval of the development project expired
▪Current property owners do not wish to re-initiate the 1144 Chorro project
▪Revocation requested to remove reference to an expired project on Zoning
Map
6
▪Recommend the City Council introduce and adopt an Ordinance revoking the
Planned Development Overlay (Ordinance 1687 [2020 Series]), related to a
development project proposed at 1144 Chorro Street, and amending the
Zoning Map to rezone the seven (7) associated properties from C-D-PD and
C-D-H-PD to C-D and C-D-H, respectively.
7
8