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?
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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
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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