HomeMy WebLinkAboutItem 3b. Costco Wholesale Open Space Land Dedication - General Plan Conformity Report
PLANNING COMMISSION AGENDA REPORT
SUBJECT: COSTCO WHOLESALE OPEN SPACE LAND DEDICATION – GENERAL
PLAN CONFORMITY REPORT
BY: Robert Hill, FROM: Tyler Corey, Deputy Director
Sustainability & Natural Resources Official
Phone Number: (805) 781-7211 Phone Number: (805) 781-7169
Email: rhill@slocity.org Email: tcorey@slocity.org
APPLICANT: Costco Wholesale REPRESENTATIVE: Pari Holliday
RECOMMENDATION
Approve a draft resolution (Attachment A) finding that the acceptance of a dedication in
fee simple title of approximately 2.8 acres of unimproved real property that is a portion of
a parcel owned by Costco Wholesale, located in the City of San Luis Obispo , for open
space conservation purposes and passive recreation by the general public, conforms with
the City’s General Plan.
1.0 COMMISSION'S PURVIEW
California Government Code Section 65402(a) requires that the Planning Commission
review an acquisition of real property for public purposes, such as contemplated herein,
for conformity with the City’s General Plan (emphasis added in bold):
If a general plan or part thereof has been adopted, no real property shall be
acquired by dedication or otherwise for street, square, park or other public
purposes, and no real property shall be disposed of, no street shall be vacated or
abandoned, and no public building or structure shall be constructed or authorized,
if the adopted general plan or part thereof applies thereto, until the location,
purpose and extent of such acquisition or disposition, such street vacation or
abandonment, or such public building or structure have been submitted to and
reported upon by the planning agency as to conformity with said adopted
general plan or part thereof.
The Commission’s purview on this item is whether the voluntary land dedication for open
space conservation purposes and passive recreation by the general public is in
conformance with the General Plan.
Meeting Date: 8/27/2025
Item Number: 3b
Time Estimate: N/A
Page 9 of 89
Item 3b
GENP-0610-2025
Planning Commission Report – August 27, 2025
2.0 SUMMARY
Applicant City of San Luis Obispo
Representative Robert Hill
Zoning Retail Commercial (C-R)
Land Use General Retail (GR)
Site Area 2.8 acres
ER Status Categorically Exempt,
§15313 and §15317
3.0 PROJECT INFORMATION
3.1 Project Description
The City’s Natural Resources Program is seeking a General Plan Conformity
Determination from the Planning Commission for a dedication of open space along the
southerly portion of the City’s Greenbelt. The proposed project is a fee simple dedication
of a 2.8-acre remainder portion of a parcel that was acquired by Costco Wholesale to
facilitate a new parking lot associated with the expansion of the gas filling station at 1540
Froom Ranch Way.
3.2 Site Information/Setting
Site Size 2.8 acres
Present Use &
Development
Unimproved
Topography Level to Steep
Access Froom Ranch Way
Surrounding
Uses/Zoning
Commercial retail, future park and residential, open
space
3.3 Background
On November 4, 2003, the City Council reviewed and approved a Use Permit (USE 173 -
00) to allow a 140,000 square foot Costco Wholesale warehouse store at Irish Hills Plaza
located off of Los Osos Valley Road. This approval also allowed the operation of a th ree-
island fuel station with six (6) fuel dispensers. The store was completed and opened for
business on September 17, 2005.
In April 2024, Costco was approved by Director Action for a modification of the existing
Use Permit (MOD-0675-2022), together with concurrent Minor Development Review, for
construction and expansion of the fueling station to accommodate sixteen (16) fuel
dispensers, a new parking lot addition, and other site improvements to improve overall
site operations by increasing maneuverability and reducing vehicle queuing. Grading and
building permits have since been issued and the project is currently under construction.
Figure 1: Approximate Area of Land
Dedication
Costco
Home
Depot Irish Hills
Natural
Reserve
Page 10 of 89
Item 3b
GENP-0610-2025
Planning Commission Report – August 27, 2025
To accommodate the new parking lot expansion, Costco acquired a parcel of land
contiguous to the west of Irish Hills Plaza from Madonna Enterprises. The new parking
lot is located to the rear of the Home Depot store and across Froom Ranch Way from
Costco. In addition to the new parking facility, a portion of this parcel also currently
includes drainage basins for the shopping center, but it is otherwise vacant. The subject
parcel is contiguous with the City’s Irish Hills Natural Reserve property. It would also be
contiguous with the future park area identified in the Froom Ranch Specific Plan. See
Attachments B and C.
Following initial conversations, the City’s Natural Resources Program recently received a
Letter of Interest from Costco Wholesale offering to dedicate the remaining 2.8 acres of
the parcel for open space and trailhead uses. Staff are now working from City Council
direction and authority to complete the dedication of the property interest, together with
an agreement for trailhead use originating from the new parking lot. It is important to note
that this offer and opportunity represents voluntary community goodwill; it is not a
requirement or condition of approval of the Use Permit modification and Costco has no
obligation to dedicate the land and provide a formal trailhead.
4.0 PROJECT ANALYSIS
Consistency with the General Plan and Project Analysis
The City’s General Plan has several areas where acquisition, use, and management of
City-owned open space is addressed. The Conservation and Open Space Element
(COSE) is where the most pertinent policy direction is found. The list below is not
exhaustive, but highlights a few key goals, programs, and policies in particular:
COSE Goal 8.1: Secure and maintain a healthy and attractive Greenbelt around
the urban area, comprised of diverse and connected natural habitats, and
productive agricultural land that reflects the City’s watershed and topographic
boundaries.
The proposed project implements this goal by adding protected property to the Greenbelt
that is adjacent to other open public lands. The property is contiguous with the City’s
existing Irish Hills Natural Reserve, which totals approximately 1,300 acres. While the site
is relatively small, from a natural resources protection perspective, it is noteworthy that
the land proposed for dedication does possess important conservation values, including
natural spring seeps and small wetland areas, serpentine rare plants, and native coastal
maritime chaparral habitat.
COSE Policy 8.5.1: Public access to open space resources, with interpretive
information, should be provided when doing so is consistent with protection of the
resources, and with the security and privacy of affected landowners and
occupants…
Page 11 of 89
Item 3b
GENP-0610-2025
Planning Commission Report – August 27, 2025
The proposed land dedication will implement this policy by protecting and conserving
sensitive natural resources found within the site and by providing a n opportunity for trail
access to Irish Hills Natural Reserve through an agreement with Costco as the adjacent
affected landowner. Ranger Service staff would install the City’s standard interpretive and
informational kiosk and other open space trailhead am enities. From a land management
perspective, it is desirable to have numerous trailhead locations, when possible, in order
to spread out trail users and reduce systemwide impacts over time.
COSE Program 8.7.1(D) Protect Open Space Resources:
The City will take the following actions to protect open space, and will encourage
individuals, organizations, and other agencies to take the same actions within their
areas of responsibility and jurisdiction: Acquire land and interests in land for open
space, pursuant to City Open Space Guidelines and acquisition priorities.
The proposed land dedication will implement this program by allowing the City to acquire
fee ownership of the property (acquisition priorities are discussed below). The proposed
acceptance will eliminate any remaining development potential of the site. This action is
a result of staff engaging in dialogue with Costco and their agreement to move forward
based on this encouragement.
The acceptance of a dedication of this particular property is consistent with the following
priority-setting policies:
COSE Appendix B, Paragraph 3: Criteria for Acquisition:
To be considered for acquisition a site must have value in one or more of the
following categories:
A) Valuable natural resources, such as habitat for listed species or species of local
concern, groundwater, or surface water.
B) Scenic qualities, cultural resources, or unusual geologic features.
C) Natural hazards to public health or safety, such as flooding or landslide, which
make reasonable development on the property unlikely.
D) Important opportunities for low-impact recreation, such as connecting the
Morros by a hiking trail, linking San Luis Obispo to connecting trails in the
unincorporated County, or for providing valuable environmental education
opportunities.
E) Proximity to land that is already permanently protected as open space, or the
property is close to land that is likely to be protected in the foreseeable future,
thus forming or potentially forming a large area of protected lands.
F) Productive or potentially productive agricultural land, or an effective buffer that
would protect agricultural operations.
G) Individually or cumulatively forms an important part of the City’s Greenbelt.
Page 12 of 89
Item 3b
GENP-0610-2025
Planning Commission Report – August 27, 2025
This proposed land dedication meets all of the above conditions except F, as the site is
not conducive to any form of intensive agriculture, nor large enough for livestock grazing.
COSE Appendix B, Paragraph 6: Criteria for Excluding Acquisition Candidates:
A site that meets the criteria noted above should generally not be acquired by the
City as open space if:
A) The site is developed with facilities or structures, and thus would not be
consistent with the open space definition.
B) The site or resource can be obtained in a timely manner as a condition of City,
State, or County development approvals or agreements.
C) The site’s values are primarily scenic, but the property cannot be readily viewed
by the general public.
D) Adjacent properties are being developed in a way that is likely to significantly
diminish the conservation values of the property in question.
E) Management of the property will be very costly or the terms of an easement
would be unusually difficult to enforce.
F) The site cannot be acquired with reasonable effort in relation to its value or
purpose.
The proposed acquisition would not be excluded by the preceding policy, as none of these
criteria apply to the property.
For the above-stated reasons, staff is recommending that the Planning Commission find
this dedication in conformity with the City’s General Plan.
5.0 ENVIRONMENTAL REVIEW
A General Plan conformity determination is exempt from the California Environmental
Quality Act (CEQA) pursuant to Section 15061 (b)(3), which provides the general rule that
CEQA applies only to projects which have the potential for causing a significant effect on
the environment. The determination of general plan conformity for acceptance by the City
of dedication of land from the property owner is not subject to CEQA because the
recommended action is only a policy review of whether acceptance of the land for an
open space and trailhead purpose is consistent with the City's General Plan. It can be
seen with certainty there is no possibility such conformance review will have a significant
effect on the environment.
The underlying dedication is also exempt f rom the provisions of CEQA because it involves
“acquisition of lands for … wildlife conservation purposes including (a) preservation of …
wildlife habitat… and (c) preserving access to public lands … where the purpose of the
acquisition is to preserve the land in its natural condition” (CEQA Guidelines §15313),
and because it involves the “acceptance of … fee interests in order to maintain the open
space character of the area” (§15317).
Page 13 of 89
Item 3b
GENP-0610-2025
Planning Commission Report – August 27, 2025
6.0 OTHER DEPARTMENT COMMENTS
The Parks and Recreation Department’s Ranger Service division concurs with
acceptance of the proposed land dedication for open space conservation and passive
recreation purposes.
7.0 ALTERNATIVES
1. Continue review of the project. The Commission may wish to request that staff
come back to the Commission for further review and deliberation at a later time,
although this is not recommended given sensitivities associated with the overall
timeline anticipated for the transaction. An action to continue the item should
include a detailed list of additional information or analysis required to make a
determination.
2. Determine that the project does not conform with the General Plan. The
Commission could find that the proposed dedication is not in conformance with the
General Plan. This is not recommended as the land dedication is consistent with
the Conservation Guidelines for Open Space Lands of the City of San Luis Obispo
(2002), and with the Conservation and Open Space Element (2006), and will
provide direction as to proper habitat protection, compatible recreational use, and
management activities for the site and its addition to the Irish Hills Natural Reserve
into the future. An action determining that the project does not conform with the
General Plan should include findings that cite the basis for determination and
reference any inconsistency(ies) with the General Plan. It should be noted that the
City Council may still accept the dedication notwithstanding a finding of non-
conformity by the Planning Commission.
8.0 ATTACHMENTS
A - Draft Planning Commission Resolution finding that the proposed land dedication
conforms with the City’s General Plan
B - Site Map of the proposed land dedication
C - Site Photo of the proposed land dedication
Page 14 of 89
RESOLUTION NO. PC-XXXX-25
A RESOLUTION OF THE SAN LUIS OBISPO PLANNING COMMISSION
DETERMING GENERAL PLAN CONFORMANCE FOR
THE ACCEPTANCE OF AN APPROXIMATELY 2.8-ACRE PORTION OF OPEN
SPACE LAND IDENTIFIED AS ASSESSOR PARCEL NO. 053-510-012 (PORTION)
WITH A CATEGORICAL EXEMPTION FROM ENVIRONMENTAL REVIEW, AS
REPRESENTED IN THE STAFF REPORT AND ATTACHMENTS DATED AUGUST
27, 2025 (COSTCO WHOLESALE OPEN SPACE DEDICATION, GENP-0610-2025)
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public
meeting in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on
August 27, 2025, for the purpose of considering application GENP-0610-2025; and
WHEREAS, notices of said public meeting were made at the time and in the manner
required by law; and
WHEREAS, the Planning Commission has duly considered all evidence, including the
testimony of interested parties, and the evaluation and recommendations by staff, presented at said
hearing.
NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of San
Luis Obispo as follows:
Section 1. Findings. Based upon all the evidence, the Commission makes the following
findings:
1. The City of San Luis Obispo’s Natural Resources Program has received a Letter of Interest
proposing a dedication of land for open space and trailhead purposes in the southerly
portion of the City’s Greenbelt. The 2.8-acre portion of the property is contiguous with
the City’s existing Irish Hill Natural Reserve and contains natural resource values that
warrant the City’s conservation efforts, as well as land management and passive recreation
trailhead benefits.
2. The City of San Luis Obispo, as a local agency that has adopted a General Plan, must
submit the proposed dedication to its Planning Commission for a General Plan conformity
determination, as required in association with the acquisition of real property under
California Government Code Section 65402.
3. The Planning Commission considered the request and determined that the intended use and
site acquisition for open space conservation and passive recreation purposes by the general
public complies with goals, programs, and policies of the Conservation and Open Space
Element (COSE) of the City of San Luis Obispo’s General Plan, specifically COSE 8.1,
8.5.1, and 8.7.1(D), as well as the priority-setting policies found in COSE Appendix B.
Page 15 of 89
Section 2. Environmental Review. A General Plan conformity determination is exempt
from the California Environmental Quality Act (CEQA) pursuant to Section 15061 (b)(3), which
provides the general rule that CEQA applies only to projects which have the potential for causing
a significant effect on the environment. The determination of general plan conformity for
acceptance by the City of dedication of land from the property owner is not subject to CEQA
because the recommended action is only a policy review of whether acceptance of the land for
open space and trailhead purposes is consistent with the City's General Plan. It can be seen with
certainty there is no possibility such conformance review will have a significant effect on the
environment.
The underlying dedication is also exempt from the provisions of CEQA because it involves
“acquisition of lands for … wildlife conservation purposes including (a) preservation of … wildlife
habitat… and (c) preserving access to public lands … where the purpose of the acquisition is to
preserve the land in its natural condition” (CEQA Guidelines §15313), and because it involves the
“acceptance of … fee interests in order to maintain the open space character of the area” (§15317).
Section 3. Action. The Planning Commission does hereby find that the Costco Wholesale
Open Space Dedication, GENP-0610-2025, is in conformity with the City’s General Plan.
On motion by , seconded by , and on the following
roll call vote:
AYES:
NOES:
REFRAIN:
ABSENT:
The foregoing resolution was passed and adopted this 27th day of August, 2025.
_____________________________
Tyler Corey, Secretary
Planning Commission
Page 16 of 89
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SCALE:
1" = 200'COSTCO WHOLESALE DEDICATION EXHIBIT
LEGEND:
949.474.1960
15535 Sand Canyon Ave, Suite 100
Irvine, California 92618
fuscoe.com
Page 17 of 89
Page 18 of 89
Home DepotCostco
Basin New Costco Parkin g
Land Dedication Area
Irish Hills Natural Reserve
Trailhea d
Page 19 of 89