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NOTICE OF PREPARATION ATTACHMENT
SAN LUIS RANCH PROJECT
The City of San Luis Obispo, as Lead Agency under the California Environmental Quality Act (CEQA),
is requesting comments on the environmental impact report (EIR) scope of work for the proposed
project, described below and in the Notice of Preparation, and commonly referred to as the Chinatown
Project. The Initial Study and detailed scope of work for issue areas identified as potentially
significant are available for review upon request. Please contact Project Manager John Rickenbach
at (805) 610-1109.
Project Location and Setting
The site is composed of approximately 131 contiguous acres in unincorporated San Luis Obispo
County, surrounded by areas within the City of San Luis Obispo, and within the City’s Sphere of
Influence, generally bounded by Madonna Road, Dalidio Drive and U.S. Highway 101. (APN 067-
121-022)
Project Description
The project is a Specific Plan, General Plan Amendment, and related actions that would allow for the
development of the San Luis Ranch (Dalidio) area as identified in the City’s General Plan. The
project includes a mix of residential, commercial, and office uses while preserving substantial areas of
open space and agriculture on a 131.3-acre property. The intent is for the project to be consistent with
the development parameters described in the City’s recently updated Land Use Element, which
envisions up to 500 residential units, 200,000 square feet of commercial uses, 150,000 square feet of
office, 200 hotel rooms, at least 5.8 acres of parks, while preserving 50% of the site in agriculture and
open space.
Discretionary Permits
In order to pursue development consistent with the mix of land uses shown in the project application,
the following entitlements will need to be processed in order to implement development on the site:
1. General Plan Amendment/Pre-Zoning
2. Specific Plan
3. Processing Memorandum of Understanding (outlining a framework for process, fees,
and a methodology for determining a fair share for Prado Road improvements)
4. Development Agreement
5. Annexation
6. Development Plan/Tentative Tract Map(s)
7. Architectural Review
1. General Plan Amendment and Pre-Zoning. The project site would require a General
Plan Amendment to accommodate some aspects of future development under the Specific
Plan, although in general it is intended to be consistent with the generl development
parameters currently envisioned in the General Plan. Because the site is currently
unincorporated, it will need to be pre-zoned prior to annexation to the City could be
approved.
2. Specific Plan. The LUCE identifies the San Luis Ranch property as a Special Focus Area
that requires the adoption of a Specific Plan prior to any development. The applicant is
preparing a Specific Plan to accommodate the proposed development consistent with
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guidance for development contained in Section 8.1.4 of the Land Use Element.
3. Processing Memorandum of Understanding - The applicant team and staff have
prepared a permit processing agreement due to the complex nature of the project that
entails multiple entitlements and actions prior to development, including annexation, where
the process may take a substantial amount of time. This agreement provides a framework
for the planning process and related activities with respect to the project application, even
conceptually describing a framework for evaluating and implementing fees and mitigation
measures. It should be noted that approval of this agreement in no way implies or
obligates the Council to approve the project. Instead, it provides the “ground rules” under
which the project application will be processed, and the conditions under which an
annexation request would be taken to the San Luis Obispo Local Agency Formation
Commission (LAFCo) should the project be approved. The Processing Memorandum of
Understanding also authorizes a Development Agreement application, which if approved
would bind the applicant to a series of specific conditions under which development would
be allowed, subject to approval of a General Plan Amendment, Specific Plan, and
certification of related studies, and an Environmental Impact Report (EIR).
In summary, the Processing Memorandum of Understanding is intended to achieve the
following objectives:
• Develop a mutual understanding in terms of the planning process to ensure the orderly
development of the project;
• Ensure a desirable and functional community environment;
• Provide effective and efficient development of public facilities, infrastructure, and
services appropriate for the development of the project;
• Assure the most effective use of resources within the City, and provide other
significant public benefits to City and its residents.
4. Development Agreement - Development Agreement establishes certain development
rights, but also commits the developer to construct or pay for certain amenities for the
City’s public benefit that are greater than the infrastructure and mitigations that are
required to facilitate the development. These are also known as “public benefits” and can
include but not be limited to public infrastructure and services such as bike facilities,
endowments to support public services such as open space, and/or other items of value.
In that context, a Development Agreement is an important tool that can be used when a
site is considered for annexation. The Development Agreement is intended to reduce
uncertainty in planning and to provide for the orderly development of the Project,
consistent with LAFCo guidelines.
5. Annexation. If the project is approved, the City would initiate the annexation process with
the San Luis Obispo Local Agency Formation Commission (LAFCo). This application
would be based in part on the Processing Memorandum of Understanding and
Development Agreement, which the City Council would need to approve. Annexation will
also depend on the City’s ability to address key issues to LAFCo, including agricultural
preservation, the ability to provide public services to the site (including water), and the
nature of a tax-sharing arrangement with San Luis Obispo County.
6. Development Plan/Tentative Tract Maps. The applicant will submit tract maps to
implement the provisions of the Specific Plan and Development Agreement. The Tract
Map establishes the proposed lot lines to allow individual ownership of properties and
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to layout the required infrastructure and utilities.
7. Architectural Review – Ultimately final architectural review of housing, commercial
buildings, and some site facilities will be needed. The ARC will take an early look at
design guidance in the development plan and provide comments.
In addition, the project will need to be formally reviewed by the Airport Land Use Commission (ALUC)
for consistency with the Airport Land Use Plan. Other advisory bodies that will weigh in on aspects of
the project development include the Parks & Recreation Commission reviewing park proposals, and
the Bicycle Advisory Committee advising on the proposed bicycle trail network.
Probable Environmental Effects/Issues Scoped for EIR
Issue areas that may be determined to be potentially significant include:
• Aesthetics
• Agricultural Resources
• Air Quality
• Biological Resources
• Cultural Resources
• Greenhouse Gas Emissions
• Hazards and Hazardous Materials
• Hydrology and Water Quality
• Land Use/Planning
• Noise
• Recreation
• Transportation and Traffic
• Utilities and Service Systems
Issues Determined Not to be Significant under CEQA Thresholds of Significance include:
• Geology and Soils (with prescribed mitigation)
• Mineral Resources
• Population and Housing
• Public Services (with prescribed mitigation)
Development of a Reasonable Range of Alternatives
Factors determining alternative project configurations include considerations of project objectives, site
suitability, economic viability, availability of infrastructure, General Plan consistency, and a
proponent’s control over alternative sites. The EIR will discuss the rationale for selection of
alternatives that are feasible and therefore, merit in-depth consideration, and which are infeasible
(e.g., failed to meet Project objectives or did not avoid significant environmental effects) and therefore
rejected. Project alternatives have yet to be finalized.
These alternatives will be general in nature since further environmental issue area analyses would be
necessary before more specific project alternatives can be identified. The need for project redesign
would be determined during the course of environmental review.
Public Scoping Meeting
A public scoping meeting has been scheduled to allow for any interested persons to supply input on
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issues to be discussed in the EIR:
Date: Wednesday, October 14, 2015
Time: 6:00 p.m.
Place: 990 Palm Street (City Council Chamber upstairs)
The meeting is an opportunity for City and consultant staffs to gather information from the public
regarding the potential environmental impacts of the project that need to be evaluated in the EIR. It is
not intended to be a hearing on the merits of the project. Therefore, members of the public should
keep their comments focused on potential significant changes to the environment that may occur as a
direct result of project development.