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HomeMy WebLinkAbout07/08/1991, 1 - GENERAL PLAN UPDATE WORK SESSION: JOBS/HOUSING BALANCE; COMMERCIAL GROWTH CONTROL; MAINTAINING AGRICULTURE. IIII��11111 111 illi v� MEETING DATE: II h uil c� o san lues og�spo - COUNCIL AGENDA REPORT ITEM NUMBER: FROM: Arnold B. Jonas, Community Development Director PREPARED BY: Glen Matteson,, AAssociate Planner OW SUBJECT: General plan update work session: jobs/housing balance; commercial growth control; maintaining agriculture. CAO RECOMMENDATION Consider the attached issue papers. Identify any additional information needed to decide the issues. For those issues where the council has sufficient information, decide the overall direction staff should follow in revising the draft. DISCUSSION This is the first of three scheduled all-day work sessions at which the council intends to set the direction for the general plan Land Use Element update. Once the direction is set, staff will compile a revised "hearing draft" and an environmental impact report will be prepared. Then the draft will proceed through Planning Commission and City Council hearings, with adoption anticipated in July 1992 . The subject topics are central to deciding the content of the general plan update. Staff has prepared an issue paper (attached) for each of the topics, following the outline endorsed by the City Council at its June 25 study session. gmD: JULYscc.wP Issue: Jobs/housing balance Description Recent state guidelines .for local planning, and discussions of regional planning and government financing reform, emphasize balancing jobs and housing within reasonable geographic areas, as one method to minimize fiscal and environmental problems for whole regions. The effectiveness of this method in achieving a community's desired relationship between environmental, social, and economic factors depends heavily on what is determined to be a reasonable geographic area. San Luis Obispo is a center of employment, trade, and services. Revenues from these sources have grown faster than resident population, so San Luis Obispo has been able to provide a high level of city services. Along with expanding trade and college enrollment, the demand for housing has increased. However, housing supply has been intentionally constrained, partly because increasing population has been seen as having undesirable environmental effects. Consequently, in the immediate San Luis Obispo area, job opportunities have grown faster than housing opportunities for the last ten to 20 years. Increased commuting is one result of the current relationship between jobs and housing in the city. There appears to be a close balance between jobs and housing within the county as a whole, but not necessarily among parts of the county. The city's worker and resident populations appear to have been fairly well balanced through the mid .19601s. For the last 25 years or so: Employment has grown dramatically in state institutions, county government, medical and other professional services, and retail trade and visitor services. Some new workers and retirees have been able to bring along substantial equity from housing markets with prices similar to or higher than San Luis Obispo's. - others have not. City housing supply has grown substantially, but not as quickly as the number of new . workers and college students attracted to the area. Compared to the 1940 's through early 19661s, as in many parts of the state, the cost of new housing has continued to increase: Other communities and rural areas, with reserves of raw or previously subdivided land and lower construction standards, have accommodated housing for many who work in San Luis Obispo. . The resulting housing pattern has increased the need for commuting, which increases the traffic volume during rush- hour and contributes to the county not meeting state air quality standards. Continued over a long time, this housing pattern may alter the social characteristics of the community. - The current development pattern has probably helped the City of San Luis Obispo fiscally; it may have made countywide provision of services more expensive. ' There has been concern that aiming for jobs-housing balance within the city, by limiting commercial development, will reduce the city' s central role in the county. Such a direction is seen to lead, in the long-term, to commercial-based revenues not keeping up with the demands of a growing population, and thus lower levels of service. The table at the end of this report shows some basic measures of jobs and housing in the immediate San Luis Obispo area in the past, currently, at build-out under the Planning Commission recommended update, and with alternative approaches. The ratios show how many workers and students there are on average for each dwelling, within the San Luis Obispo planning area. A higher ratio indicates a greater imbalance. The ratios range from nearly 112" to nearly 113. " In 1988, countywide, the ratio of workers to dwellings was about 1. 1. This number is not directly comparable to those in the table, largely because it excludes .many college students, but it does reflect the city' s difference from countywide conditions: the city has about one-half of the workers (jobs) and about one-quarter of the population in the whole county. Planning Commission recommendation The commission has recommended that the city "Do all it can to assure that increases in employment and college enrollment do not outpace housing availability" (goal #8) and "manage its growth and influence regional growth so that . . . the gap between housing demand (due to more jobs and college enrollment) and supply is not increased" (policy 1. 1. part D) . The commission recommends specifically that, "The city' s housing supply shall grow no faster than one percent per year. The number of jobs in the city should increase slower than the housing supply, so jobs and. housing approach a closer balance" (policy 1.2) . The commission recommends extending growth rate controls to commercial development to slightly improve the jobs/housing balance, within the context of overall community goals. (See issue paper on "Commercial Growth Controls. ") The commission recommendation recognizes that having the sheer numbers of new workers and the numbers of new dwellings more nearly equal is a necessary but not sufficient answer to jobs/housing imbalance. The draft Land Use Element update elaborates on the adopted Housing Element's requirements for major residential expansion areas and other projects to participate in affordable housing solutions (policies 2.27 through 2. 29, to be discussed in a future issue paper) . 2 Citizens Advisory Committee (CAC) statement The CAC has endorsed a statement (excerpt attached) concerning the city's long-term financial health. Concerning jobs/housing balance, the statement says, "While jobs/housing balance may be a desirable community objective . . . the City should not take steps adhering to this concept which might have the effect of damaging the local economy. " Alternatives to commission recommendation A. Continue to 'emphasize the city's role as a regional trade and. service center, and accommodate housing needs within an area extending beyond the city's planning area. Work to mitigate impacts from commuting through promoting regional transit or other means. B. Aim for a closer balance between jobs and housing in the San Luis Obispo planning area, but try to achieve it by expanding residential build-out capacity and relaxing controls on residential growth rate, rather than extending controls to commercial growth. Environmental and economic questions 1. What factors contribute. to the city's present jobs/housing relationship? - 2. For what functions does the city operate as a regional center, and how might those change due to factors which the city does not control? 3. What factors influence the city's ability to achieve a closer relationship between jobs and housing? 4. In addition to the issues noted above, what are the pros and cons of attempting to achieve a closer balance? 5. If the city chooses to alter the existing relationship between jobs and housing, what policies and actions would be appropriate? gm 7-5-91 D:JHBAL-CC.WP Jobs/housing Comparison Table Approximate capacity at build-out, San Luis Obispo planning area: 1980 1990 2020 Housing units Actual 17,500 . 21, 200 Ping. Comm. capacity 27, 500 "Closer balance" alt. 29, 200 "Recent trends" alt. 34, 600 Workers and students Actual 41, 300 53, 500 Ping. Comm. capacity 67,780 "Closer balance" alt. 56,700 "Recent trends" alt. 100,900 Ratio of workers and students to dwellings Actual 2. 36 2 .52 Ping. Comm. capacity 2.46 "Closer balance" alt. 1.94 "Recent trends" alt. 2 .92 Sources: San Luis Obispo County Dept. of Planning and Building;- 1980l 1990 U.S. Census; Strategic Planning Program : Summary Report; City of SLO Community Development Dept. Notes: A. The "planning area" is the San Luis Obispo Planning Area used by the . county, which is very similar- to the city's planning area, and extends beyond the urban reserve. It includes CMC, Cuesta, and the Country Club/Rolling Hills areas. Nearly all of the planned development capacity, however, is within the city's urban reserve. B. The dwelling count includes an equivalency for on-campus dorms. C. The "closer balance" alternative assumes that the overall commercial build-out capacity would be made the same as the amount of development allowed under the Planning Commission's recommended growth rates, while residential capacity would be increased by using the Dalidio area; the Madonna area, and some additional smaller areas for housing. D. The "recent trends" alternative simply projects the 1980-to- 1990 growth rates for housing and for employment/enrollment through 1991-2020. CAC C,+aterY-2e+-;t Industry- provides jobs and, in the case of. many industries, provides sales tax revenue. while industry is important in itself, it reaches its greatest importance in relation to the other sectors of the local economy. It provides economic diversification and reduces economic vulnerability in an economic downturn. It augments and complements the strong governmentally-based economy, the retail sales economy, and the visitor economy. The desirability of having sufficient light industry in our City raises some important questions. Should the City be aggressive in the pursuit of new industry? Should the City commit itself to protecting and enhancing the industry which is already here? Is industry of prescribed types necessary to provide for the needs of our residents and the needs of other businesses? If we slight or underprotect our industry, will this have certain negativelong-term effects? Are there types of industry we don't particularly want because of. undesirable by-products or impacts? Are we serving the community's long-term interests by converting industrially-zoned land to residentially-zoned.,land? These and other related questions. are often not: raised, and are not answered. Consequently, light industry appears to some to be the orphan bf= the- community's economic. sectors, loved and._ defended. by few, yet making a real jobs/economic impact contribution. It is timely to resurrect- the questions and issues regarding light- . industry, and to develop a more conscious policy towards this sector? 17: The-Care- and' Feeding of Retailing:- Thersingle: largest revenue source of the 'City.^is sales taxa The second largest revenue source., property tax, produces only 55% of what sales - tax -produces. It is retail store - sales and other "point of source" sales within- the City which produces. the sales tax. . This argues that retail sales are not only critically important to the economy, producing secondary benefits . to :: other- sectors. to the economy,- but are also financially criticalto : the City. -: This further argues that, in the competitive environment. the City is in, it is necessary for. the City to take_ a strong supporting. role - to - protect. and enhance•-- our retail business. The past attitude that the: private sector takes care of the private sector, and that it neither wants nor needs assistance from governmentf- is no longer appropriate.: , - 18. . The°Jobs/Housing Balance-:: = The- communityIs jobs/housing balance has recently been.. (and remains) an issue within the community. Though the concept has- appeal, a recent article (Urban Land Magazine, Urban Land Institute, October 1990) =`-= • indicates that this- is-' a complex issue. -. In further .considering this " issue; four overview principles are suggested as_ appropriate: : _ - == A.-= Jobs/housing' balance should be pursued- by.-the City to the- extent =s .r that it-can be achieved without introducing. negative -effects on the City's: economy. #_ s : ::. The usually-cited. "remedy" for an existing jobs/housing;. imbalancP : . where the number of- jobs , exceeds the number of living .units ( 1 these 'are defined);- is- to either: -.. . _ . (1. ) Increase the number of housing units, or (2. ) Decrease (or hold) the number of jobs. B: Regarding I. above; it-' is7 recognized • that. the number. of • housing units can only be increased to a certain point without introduction of certain resource and infrastructure limitations, such as: (1. ) Provision of an adequate water supply, (2 . ) Provision of adequate . sewer collection and . treatment facilities, (3. ) Prevention. of air• quality deterioration,:..._ (4. )- Prevention of traffic- congestion----_ (5-. ), Provision of' adequate: parks,: playgrounds and-open. space, (6. )'- Preservation of_ community amenities . and quality_ of- life. C. We have to� recognize that the City, over many years, has purposefully planned for and: limited._our- residential• developmen, "= based in part_on the. negative. consequences; of too_. much_ growth. ) Regarding= A:1:%*above,:: it - is: recognized that the :.ability.- of our citizens to economicallysustain themselves is a.critical, component = off-"quality'olife=';- and. that: the community,has:. a responsibility = to sustain both- the community's_ overall: economy_. as well.as..the City government's -' revenue-'sources:. : The., City_• has•. a responsibility to protect and enhance existing- businesses and jobs,-..and_ to. plan for = = - economic activity and- job creation as- are- necessary to provide for = = -- the' City's- continued, economic: vitality. :s .I _ D. The City has become a. regional-_center%�in; employment, retailing, governmental services, educational services, medical services, . financial services, and culture and-.•entertainment,.:=and_the City - should-`support and sustain_these.. services%economic.: .sectors= rather - _ - -- than' to diminish-.them. =- ` may.�___...- c:.... =.: �- c.^ i .-�.-: s r..,�y _ � Jv.s;� •^-`T r- ^,r -•^c - In-"didcussiorff of this issue by_ the., Committee, ;it; was-:stated that certain businesses `and,industries::!'pay-•* a- lot: of-money,,to a:_few: people and pay a lot of people verylittle money." The consequence of that is -- that many who: work here, cannot`. afford. the. local: housing_.costs._�, Though = this does -cause a- commute; it_was: stated; that,it�does bring people to the City. who buy meals - and goods,,- and'. then .they.�"take::their need. for residential services back home. " -- it. was postulated that a jobs/housing balance- might not be. 'possible, and it isn't entirely clear it . ,. desirable. _ ✓� In conclusion, while jobs/housing balance may be a desirable community objective, and we should work towards that goal to reduce commute distances, traffic congestion and air pollution, we also have to provide balance between creating a livable community and maintains a strong economy, and that the City should not take steps adhering to this concept which might have the effect ofdamaging the local economy. 19 . City as Protector of General Fund One- important role of City government is that of protector/steward of the City's General Fund. The General Fund is that collection of municipal revenues (excepting parking, water and sewer revenues) which pay for providing City services. These services range from critically needed public safety services such as police and fire, to those which provide for human needs such as recreation services for youth and shelter for the homeless. Without an adequate General Fund, the City cannot meet its obligations to its citizens to provide essential and desired services. Therefore, it is necessary to create a General Fund which is capable of sustaining our City's ability to provide adequate police services, to build parks, to protect our environment, to manage our growth, and to provide the myriad of services that our community expects and demands. 20. . Need for City Independence and Self-Reliance California has historically had a tradition of strong "local home rule", which has given California cities greater independence and authority than cities in other states. In the last generation there has been a considerable erosion of the local home rule principle, as cities have experienced an erosion of their revenue base and as the State - Legislature deals with a deteriorating State revenue base, and increasingly displaces its financial burden onto cities and counties. It is absolutely necessary, in the current and projected political and financial environment of the State, that cities, and San Luis Obispo in particular•, remain strong. This is done by taking responsibility for our own destiny, and by not allowing ourselves to become dependent on the Federal and State government, as they are increasingly overwhelmed with their own financial shortfalls, and increasingly look for ways to better themselves by taking from others. Control and self-reliance and strength, rather than dependency and less of self-control and weakness, have to be the prevailing concepts of our City for the next decade if we are to accomplish our goals. 21. The Need for a Different Perspective Implicit in the above is that, in San Luis Obispo during the last two or three decades, the "quality-of-life" perspective has been dominant, and the "economic development" perspective has been subordinated. as either not necessary or even as being harmful to a desired quality-of- life. We may now be at a time when quality-of-life and economic development can no longer be viewed as dive,rgent or as. opposites; they may have to be viewed as parallel and compllihentary objectives: The new realization may become, "you can't have one without the other". The City can't indefinitely continue its progress towards a high environmental consciousness/quality-of-life and excellent services without supporting the economic activities necessary to obtain these ✓. objectives. . Issue: commercial growth controls Description Commercial uses, . under current taxation and spending rules, typically generate more revenues than costs for city government: Commercial development can cause more traffic in the city, and more population growth and housing demand in the area. Some types of commercial/industrial development meet the demands of neighborhoods or the community as a whole, and would be expected to grow in response to city resident population; other types meet demands from state and national economies, and may grow (or shrink) due to changing demands unrelated to city resident population. There seems to be general agreement that: - Increasing desires by metropolitan area residents to spend time away from their normal environment for vacations, and to relocate businesses, can cause continuing high demand for development in places like San Luis Obispo. - As San Luis Obispo County's population grows, it will be able to support increasingly "high-end" retailing and specialized services, which have a choice of locations (Santa Maria, South SLO County, San Luis Obispo, or north SLO County) . San Luis Obispo's central location and level of services make it attractive to developers of such commercial space. - As SLO County communities other than San Luis Obispo grow, they will be able to support shopping and services for which their residents previously came to San Luis Obispo. The city can control commercial development through (1) the overall capacity under zoning, (2) the rate of planning or construction approvals within certain time intervals, and (3) individual project design review. Overall capacity controls are always in effect, though they can be increased through rezonings, annexations, and changes to zoning standards. Most cities . have a greater zoned capacity for commercial development than their anticipated population/market growth will support. This was the case for San Luis Obispo before the 1977 general plan update; some would say that it is still so. Commercial growth rate controls --in the sense of an annual allocation-- are apparently without precedent. However, some cities have set caps, and are now deciding how to allocate the cap to various developments. (Santa Barbara's cap of 3. million square feet over the next 20 years works out to about 0.75 percent per year, though Santa Barbara is setting its cap at a point farther along in urbandevelopment than San Luis Obispo is now. ) Individual project design review is not seen as an equitable or effective way to deal with citywide capacity or rate of commercial development. During the 1980 's San Luis Obispo's housing stock grew by about 24 percent (a little over two percent per year, compounded) , while nonresidential buildings of all kinds grew by roughly 34 percent . (about three percent per year, compounded) . Planning Commission recommendation The commission thought that without deliberate controls, the city would experience more commercial/industrial development than desired within the framework of community goals. The overall capacity of the Planning Commission draft is: 1990 Additional Buildout Retail (million sq. ft. ) 3 . 19 1. 31 4. 50 Office (million sq. ft. ) 1. 32 0. 97 2 .29 Serv. Com. /Industrial 2 .59 0. 97 3.56 (million sq. ft. ) Motel/hotel (rooms) 11780 600 21380 The commission recommended that the city "adopt regulations to manage growth of new office, commercial, and industrial uses" with annual. employment . growth not to exceed 0. 75 percent from 1991 through 2010 and 0.50 percent from 2011 through 2020 (program 1.2) . The program does not specify the technique for limiting growth, ; but the commission had discussed limiting project approvals, keyed to new building floor area, over five-year intervals. That approach would be relatively easy to administer, and would allow corrections at the ten year milestones if employment actually grew more or less than would be assumed from a certain correlation with new building area. The recommended growth rate controls would prevent the full capacities noted above from being used within the 30-year general plan horizon. The commission discussed and agreed to reconsider, but did not recommend, specific steps to lower the overall commercial capacity. The commission set the commercial growth rate lower than the residential growth rate because the commercial base is already substantially larger than the residential base. Therefore, the actual amounts of commercial development and of residential development would be approximately balanced, possibly tipped slightly toward residential to redress the existing imbalance. Assuming that the commission's recommended growth rates would be applied uniformly to all types of commercial development, the following tables show allowed increases in five-year increments, and note existing project sizes for comparison. 2 HD (1) Retail (square feet building area) Year Added in interval Cumulative addition Total 1990 - - 31190,000 1995 129, 000 129, 000 31319, 000 2000 129,000 258, 000 31448, 000 2005 128, 000 386, 000 31576, 000 2010 128, 000 514, 000 31704 , 000 2015 95, 000 609, 000 31798, 000 2020 94, 000 703, 000 31893 , 000 Madonna Road Plaza is 320, 000 sq. ft. ; Central Coast Plaza is 220, 000 sq. ft. ; the proposed initial retail phase of French Pavilion was 40, 000 sq. ft. ; the new Uncle Tom's Toys store will be about 9, 000 sq. ft. (2) Nongovernment office (square feet building area) Year Added in interval Cumulative addition Total 1990 - - 11320, 000 1995 54 , 000 54 , 000 1, 374, 000 2000 53, 000 107, 000 1,427, 000 2005 53, 000 160, 000 1,480, 000 2010 53, 000 213, 000 11533, 000 2015 39, 000 252, 000 11572, 000 2020 39, 000 291, 000 11611, 000 . The Dallidet Building on Pacific Street is about 15, 000 sq. ft. (3) Services & manufacturing (square feet building .area) Year Added in interval Cumulative addition Total 1990 - - 2, 5901000 1995 105, 000 105, 000 21695, 000 2000 104, 000 209, 000 21799, 000 2005 104, 000 313 , 000 21903, 000 2010 104,000 417, 000 31007, 000 2015 77,000 494, 000 31084, 000 2020 76,000 570, 000 3, 1601000 Ali the dealers on Auto Park Way comprise 122., 000 sq. ft. 3 (4) Motels & hotels (rooms) Year Added in interval Cumulative addition Total 1990 - - 11780 1995 72 72 11852 2000 72 144 11924 2005 72 216 11996 2010 71 287 2, 067 2015 53 340 21120 2020 52 392 2, 172 The new A11 Star Inn on Calle Joaquin has 117 rooms. Alternatives to commission recommendation A. Do not control the rate of commercial growth. B. Do not allow any major new commercial/industrial development beyond that which has received planning/building approvals. Existing commercial buildings could be maintained and reused. Large vacant parcels inside the city now zoned for these uses would be rezoned, where appropriate, to residential. Small, infill commercially zoned parcels would be allowed to develop similar to the least intense surrounding commercial development. C. Control (further reduce) the overall capacity for commercial development, but do not control the growth rate directly. No commercial/industrial annexation areas would be planned, and the allowed intensity of development in currently zoned areas would be reduced. Any proposed general plan amendments and zone changes to increase capacity would have to pass tests concerning jobs/housing balance, traffic congestion, adequate utilities, and the community's desired pace of change. Perhaps mixed-use projects with a substantial residential component could earn a bonus commercial space allocation. D. Allow a commercial growth rate equal to the residential growth rate. Since the commercial base is relatively larger than the residential base, the actual amount of commercial development would be relatively greater than the amount of residential development. E. Allow a commercial growth rate similar to projected countywide population growth, in the range of two to three percent per year. F. More a refinement than an alternative: focus the control on' development which generally does not meet the service demands of area residents., such as tourist commercial and manufacturing. Motels, industrial buildings, and large offices would be more constrained, while stores and small offices would be •less constrained. 4 G. Include government facilities in the nonresidential growth management objectives. Staff estimates that the following sectors contribute roughly the indicated percentages to economic activity, local traffic, and housing demand in the city: Retail trade, visitor services, professional services, manufacturing, transp. , communic. , utilities: 32% Cal Poly 31% School district, city, county, state, (excluding Cal Poly) and federal gov. : 17% Pensions, property income, transfer payments, people with no direct dependence on local economic activity: 170 Development and construction: 3% To the extent that these sectors can actually be separated, and if these fractions are valid, controlling private commercial development would affect at most about one-third of the total demand for housing and environmental support. The Planning Commission recognized this, but did not call for city controls on government development because state and federal agencies are normally exempt from city control. The commission did recommend that the city "try to influence the expansion plans of government agencies so their employment expansion will not exceed the desired nonresidential growth rates" (program 1. 5) . Such influence could be exerted through lobbying the administrative and budgetary sources of control for agencies, as well as through environmental review. The commission recognized that slower countywide population growth would result in lower demand for government services (program 1.9) , a key feature of regional growth management. Environmental and economic questions 1. What types and amounts of private, nonresidential development are likely to occur within the '.city's environmental setting, regardless of city action to accommodate or displace them? What types and amounts of development subject to city management would be net additions to development within the city's environmental setting? 2 . what will be the overall changes imposed on city revenues and spending if commercial 'space grows slower than housing, assuming current taxation and spending rules? What if the taxation and spending rules change (such as reform of "Proposition 13" property 5 �-12 taxation, or population-based rather than point-of-origin sales tax distribution) ? gm 7-3-91 D:COMCONCC.WP Issue: Maintaining agriculture Description Agriculture was the foundation of San Luis Obispo's growth until the 19401s. Cultivated land near the city still provides fresh produce for area residents and visitors, and part of the city's aesthetic setting. Agriculture generally cannot provide levels of employment and income as high as those from urban development. Also, it uses more water to produce a given amount of employment or income than most urban development. Intensive cultivation using conventional irrigation methods often uses three times as much water per acre as urban development does. San Luis Obispo's moderate climate, good soils, and water availability allow production of more than one crop per year for some vegetables. "Class I and I.I" soils, according to the U.S. Department of Agriculture, Soil Conservation service, have few limitations for agricultural use because of their slope, inherent fertility, texture, depth, and drainage. Such lands are limited and, throughout the county and state, are being irreversibly converted to urban use. All of the currently planned major residential expansion areas and the southern 30 acres of Higuera Commerce Park contain Class I and II soils which have supported cultivation or intensive grazing. Throughout the San Luis Obispo area, growers who lease land continue to cultivate multiple parcels that are individually too small to provide the entire support for a farm household. Urban development on and near the parcels is the primary cause for their conversion from agricultural use. Other obstacles to continued agricultural use cited by growers are lack of farm- worker housing, competition from foreign farms, plant diseases, and limits on burning and chemical use. There are about 1,200 acres of Class I and II soils in and around the city, comprising about one percent of such soils within the county (attached map, excerpt from the Water and Wastewater Management Element •Final EIR, February 1987) . About 180 acres within the Dalidio area are intensely cultivated, and have become the focus for debate on preserving agricultural land. The Dalidio area has been planned, inside the urban reserve, as a large part of the city's future residential capacity; recently, it has been discussed as a potential location for shopping center development. The adopted general plan says land inside the urban reserve should be used to accommodate planned growth of the city, while land outside the urban reserve should provide the city's open space setting. , One of the "discussion draft' s" key directions was to allow urban development within the urban reserve line, in exchange for permanent protection of open and agricultural land within the 1 r planning area but outside the urban reserve line. Adoption of consistent . plans by the city and county, perhaps a contractual agreement between the agencies, and transfer of density credits from outside the urban reserve to inside the urban reserve were seen as ways to accomplish such protection. In some past cases, the county has justified approving development on prime agricultural land by referring to the city's approval of Higuera Commerce Park on 80 acres of prime land, and to the idea that the city should accommodate a proper share of anticipated countywide development. Planning Commission recommendation The commission has recommended that "Undeveloped, prime agricultural land within the city's urban reserve line shall be permanently preserved for agricultural use" (policy 1.8) . "Prime" land is defined as Class I and II soils. Strict application of this policy would eliminate from urban use some large parcels inside the city, all of the Dalidio expansion area, and most of the Irish Hills, Margarita, and Orcutt major expansion areas. The commission's recommended map shows the Dalidio area as permanent open space, while the other expansion areas and some large parcels within the city are shown for nonagricultural uses. In the past, the city's designation as agriculture or open space of an area under county jurisdiction has not alone been sufficient to assure that it will remain in an open use; the area in question may develop with low-intensity suburban uses. Alternatives to commission recommendation A. By policy, limit agricultural land protection to large parcels of prime land with a recent history of cultivation (the Dalidio area) . This would make the text policy and map designation consistent. The Dalidio area would not be urbanized, but other currently designated expansion areas would be. B. Use suitable land. within the urban reserve for additions to city housing and commercial services, while concentrating efforts to preserve farmland on areas outside the urban reserve. All currently designated expansion areas, including Dalidio, could be urbanized. C. Protect all prime land in and around the city, by making the map consistent with the currently recommended policy. Some large, open parcels in the city and nearly all of the land in the currently designated major expansion areas would be removed from potential urban development. Both commercial and residential capacity would be significantly reduced, but the residential reduction would be proportionately greater, further imbalancing jobs and housing capacities (see the issue paper "Jobs/Housing Balance") . 2 D. Concerning the Dalidio area specifically, leave a broad band of cultivated land along Highway 101, and use the rest of the property for urban development. Environmental and economic questions 1. Would substantially reducing urban development capacity in and around the city displace development to other locations within the city's environmental setting, but outside its urban reserve? 2 . What would be the fiscal impacts for the city of permanently preserving for agriculture a substantial part of the urban reserve (direct expense, if any, to provide greater protection than offered by zoning, plus the net service cost/revenue effect) ? gm 6-27-91 D:MAINAGCC.WP 3 Figure 8. I 1�1 i i IIS. . 1 � I Jr::9• •;¢: I :+rY YrY�+�•r�+Y++ I An }•Y � KYr+I.+ �rJr jJ :+''4'•4':+J I I +,++ 4,11•} '�.♦ I .. t.+� t: 1 � M1 *µnm \ 1V .,�.,, ,�,.• / CLASS I&II SOILS � .•- :: :,+ � r�.'•tiy�ti;:r<1!}�•�: /•�:• Urbanised rr},• '•rlifrl•• +ir rC'f '•+r fi' r r?r•} .•.}S}r.r I y •vC%v� .{4 rF.�Y• .�.;yr: r v}r . . I .+ti '�:r '}?r'•'{{:y'r.JJ} M1�vr•,'.r4 r ..'{ To be urbanised with / I J ,•}'�i7}'•+r'};Jl'Vr+•l rr,J:ti1•+v •:. t+SR'a..:.'..,.. .. • supplemental water / i r ;C• `.:•}}{ C... Potentially urbanized / with major source of supplemental water - N it - city of AGRICULTURAL San WI S 0131 Spo LAND DEPARTMENT OF COMMUNITY DEVELOPMENT 990 Palm St. P.O. Bo. 321,San Luis Ob;SPO, CA 93406