Development Activity in Paso Robles,  May 2005

Background:

1.                  The January 2005 population of Paso Robles has been estimated by the State Department of Finance as approximately 28,000 persons.  

2.                  The new General Plan which was adopted December 16, 2003, anticipates the City growing to up to 44,000 residents by 2025. That growth will result primarily from "infill" development within the existing City boundaries. Residential annexation areas would be limited to 511 acres SE of the City.

3.                  Infill is anticipated to constitute about 82 percent of the Citys growth through 2025; annexations account for about 18 percent of the planned development.

4.                  The new General Plan provides opportunities for Zoning Overlays to promote "Mixed Use" development, Senior Housing, and Historic Preservation. Development standards will be prepared for these Zoning Overlays and to facilitate multi-family residential development.

5.                  As of April 2005, there were 817 single and multi-family dwelling units that had received entitlements to apply for building permits (this is the total of all past approvals for new dwelling units that have not yet been constructed).

6.                  During the period of 7/1/03 and 6/30/04, building permits were issued for a total of 325 single and multi-family dwelling units. As of 4/30/05, permits for 386 additional units had been issued for the fiscal year starting 7/1/04. An additional 82 permits were ready to issue and 47 more were in plan check.

Recent Accomplishments and Pending Projects:

1.                  General Plan Up-Date:  There will be a number of implementation steps that will need to be taken in follow-up to completion of the General Plan update on December 16, 2003. These include the following:

                    Update City utility master plans (water, sewer, storm drain) to be consistent with the General Plan; underway and planned for completion during 2005-06.

                    Establishing fees and financing requirements to insure that new residential development creates "fiscal neutrality"; that process has started with adoption of  "goals and policies" and requirements to participate in Community Facilities Districts.

                    Determine the location and mechanism to create the "purple belt" called for in the General Plan; a qualified consultant team has been approved and work has begun.

                    Prepare Specific Plans for the Olsen Ranch and Beechwood Area, both of which were annexed to the City in 2004. Proposals have been received from qualified consultants and a recommended consultant is anticipated to be presented for City Council consideration of selection and project funding during May 2005.

2.                  Downtown Parking & Circulation Analysis and Action Plan: In October 2002 the City Council approved an action plan prepared by Kimley-Horn  focusing on effective use of existing on and off-street parking and identifying the need to plan for future parking facilities. Traffic circulation within the downtown area was also a part of the scope of study. The purpose and intent is to anticipate future needs and support continued economic revitalization in the downtown area. Plan implementation will be addressed through the Citys annual budget process. The current parking code for the Downtown Area (which is lower than elsewhere in the City and is designed to encourage Downtown investment) is scheduled to expire 12/31/05 unless extended by the City Council.

3.                  Chandler Ranch Area Specific Plan: The City Council has established a Specific Plan requirement for an 837 acre area including the Chandler Ranch. The City is the "lead agency" in preparing a Specific Plan and Environmental Impact Report. This is the largest undeveloped portion of the City, extending along the Citys easterly boundary from Linne Road north to Union Road. The property is characterized by rolling hills and an oak woodland.

                    The Citys consultants have prepared four different land use plans for City Council consideration. The options range from about 250 dwelling units (current General Plan) to about 1,439 dwelling units (of various types and densities).

                    For the purposes of study in the Draft Environmental Impact Report (EIR), the City Council has selected the scenario with 1,439 dwelling units; the actual adopted plan may be less than that amount.

                    A Draft EIR was available for public review and comment since September 1, 2004 and public comments were received through November 24, 2004. Based on the scope of comments received regarding traffic related impacts and a pending proposal from the primary property owner to change their proposed land use patterns, it is anticipated that there will be a new Draft Specific Plan and Draft EIR prepared. Completion of the project is expected by early 2006.

4.                  Airport Area Industrial Development: During 2003 a 67,700 square foot  Santa Cruz Biotech facility opened at 3598 Dry Creek Road. Future additional phases were approved in 2004.

5.                  Resort and Hotel Projects (approved / entitled):  

Paso Robles Hot Springs: The City has approved an application for the 246 acre Paso Robles Hot Springs project, including a 223 room resort hotel and conference facility proposed on property located between Buena Vista Drive and North River Road. This is a multi-phase project that is anticipated to be developed over approximately 8 to 10 years.

French Village Resort: The City Council has approved an 80-room resort hotel / spa with related facilities and a cluster of 17 homes on a 21 acre property located at the northeast corner of Buena Vista Drive and Experimental Station Road. The project may be developed in phases. The architecture would be a "Provence" theme.

Vina Robles is the name of an 80 room resort development planned for 28 acres on the south side of Highway 46 East, near the Mill Road intersection. The project includes vineyards, a tasting room, and entertainment facilities. The project is anticipated to proceed in three phases, with the hotel being in a later phase. Planning Commission approved the project March 11, 2003.

The "Palazzo Paso Robles" hotel project was approved by the Planning Commission and City Council in May / June 2003. The four-story, 130 room hotel is proposed for property located south of 1^st Street and east of South Vine Street, adjacent to the Highway 101 southbound on-ramp. Development plan refinements were approved by the Citys Development Review Committee (DRC) in May 2005.

The Adelaide Inn is under construction for a 42 room expansion of their existing hotel located near the intersection of Santa Ynez and 24^th Street.

      An unnnamed 80-room hotel was approved in 2001 as a part of a multi-phase

      commercial Planned Development in the vicinity of Black Oak Drive. (The first

      phase was construction of the new "retro" architecture McDonalds Restaurant;

      subsequent phases are anticipated to include the hotel and a restaurant.)

Black Ranch: Applicants have filed a Development Plan for a new resort on approximately 350 acres on the north side of Highway 46 East, opposite the Hunter Ranch Golf Course. The project includes 280 hotel rooms and cottages, and a new golf course. Planning Commission consideration will be scheduled as soon as environmental documentation and draft mitigation measures are completed.

      La Quinta Inn: A 101 room hotel with an accompanying 5,000 square foot restaurant

      was approved by the Planning Commission at their meeting on February 24, 2004.

      The location is the NE corner of Buena Vista Drive and Highway 46 East. Site

      grading has begun and issuance of Building Permits is pending.

       La Bella Sera: A 61 room hotel is under construction on for a parcel located on

      Alexa Court (SW of the interchange between Highway 46 West and Highway 101).

      Occupancy of the building will be coordinated with improvements to that

       interchange. Permits have been issued.

       Holiday Inn Express: an expansion of 32 additional rooms has been approved for

       the site on Riverside Avenue, north of 24^th Street. The project is in plan check.

       The Inn at the Stables: 16 room hotel with retail development approved for the NW

       corner of 10^th and Pine Streets; project is in plan check.

6.                  Highway 46 E Corridor Study: The San Luis Obispo Council of Governments (SLOCOG) sponsored a study of alternatives for Highway 46 East. The options include an expressway in the current location, a freeway in the current location, and a northerly parallel route along the Dry Creek Road alignment. The study was prepared to a public review draft stage and provides some schematic illustrations of how interchanges might be constructed at various locations along Highway 46 East.

7.                  Project Study Report, Airport Road / Highway 46 East Intersection: The City Council has appropriated funds to prepare a PSR for subject intersection. The intent is to make provisions for a signalized intersection as an interim improvement, with identification of the right of way needed for a future grade-separated interchange at that location. Completion of the PSR may occur during 2005-2006.

8.                  Highway 46 West / 101 Project Study Report (PSR): The intersection of Highways 46 West and 101 is being studied for future expansion and improvement. This work is pursuant to an agreement between the City, SLOCOG, and the County of San Luis Obispo. The intent is to plan for further commercial and industrial development in the subject area. In April 2005 Caltrans approved the submitted PSR. Once funding is secured, work will begin on Project Approval and Environmental Documents (PAED). Projects in the City in the immediate area have been required to agree to participate in funding the long-term improvement of the subject interchange.

9.                  Charolais Road:  In conjunction with the Highway 46 West / 101 study, the City is also evaluating alternative ways in which to extend Charolais Road across the Salinas and connect to the interchange at Highway 46 West / 101. The study is looking at alternative designs.

10.              Airport Master Plan: On March 16, 2004 the City Council approved a Draft Airport Master Plan and a Draft Airport Land Use Plan. The Master Plan was approved by the City Council in November 2004; the Land Use Plan was approved by the  County Airport Land Use Commission in February 2005.

11.              Hot Springs at the north end of the City: It is anticipated there may someday be a resort / tourism development on the site of the historic "mud baths". The property lies at the northern-most extension of Spring Street, accessed from the Highway 101 on-ramp.

12.              Gateway Business Park Project:  Development is underway for an office / business park project on the property located southeast of the corner of 1^st and Vine Streets. The proposal provides for up to 35,500 square feet, including 8,500 square feet of restaurant uses.

13.              Heritage Oaks Bank Projects: During 2003 a 6,800 sq. ft. branch office of Heritage Oaks Bank was constructed at the southeast corner of Niblick and South River Roads. A major expansion of the downtown Headquarters has also been approved by the Planning Commission.

14.              East Village Shopping Center:  In September, 2003 a new Food 4 Less store opened as an anchor for a 90,000 square foot shopping center located at the NE corner of Creston and Sherwood Roads. The center includes a variety of other retail and services related uses.

15.              New Restaurants and Specialty Retail in Downtown Paso Robles: Over the past year there have been a number of new businesses established and there are more pending. Some examples:

                    Panolivo, Gourmet Deli, French Bakery & Restaurant, 1344 Park St.

                    Wilmot Market, 13^th Street between Park and Spring

                    DiRiamondos Cheese Shop, 822 13^th Street

                    Twelve-Fifteen, at 1215 Spring Street

                    Dining With Andre, 1032 Pine Street

                    Coldstone Creamery, 834 11^th Street

                    Berry Hill Bistro, Pine Street

                    Lombardis, 832 11^th Street

                    Basil Thai Restaurant, 836 11^th Street

16.              Other commercial projects are approved or pending, including:

o    Kohls Department Store and related shops: An 88,000 square foot Kohls opened for business in the Woodland Plaza II shopping center on March 3, 2005. Construction is underway for 22,000 square feet of additional shop space in the immediate vicinity.

• Target Shopping Center:  Development is underway for up to about 17,000 square feet of new retail / services to be added at the corner of Gahan Place. A 12,000 square foot Petco building recently opened and additional retail / services space is under construction. Within the boundaries of the Target center there are proposals for three pads with about 19,000 square feet of additional commercial space, including a Starbucks Coffee.

• Commercial developments in the Ramada & Theater Drive Areas: a number of different projects have been proposed and are pending the implementation of traffic mitigation measures in that geographic area.

• Black Oak Drive  potential restaurant adjacent to the new McDonalds

• Corner of 24^th & Ysabel:  potential 7,500 square foot commercial center.

• Neighborhood shopping center of about 5.8 acres, near Cuesta College

• Mixed-Use development on vacant property in the downtown area along Spring Street south of 9^th Street

o    Railroad Square, a 12,500 square foot commercial center planned for 1429

      Riverside Avenue, has building permits ready to be issued.

• A Mobil Service Station and Convenience store,  with a total of about 8,300 square feet, has been completed and is open for business at the northwest corner of Golden Hill Road at Highway 46 East

o    Jiffy Lube is now open, South River Road, opposite Wal*Mart.

                  o    Kennedy Club Fitness center (41,000 square feet) plus two additional retail buildings (2,450 and 3,600 square feet): applications have been approved by the Planning Commission for a site on South River Road.

                 o     Mastagni Buildings (former Clock Tower and Camera Corner properties); approved by the Planning Commission on May 25, 2004. 28,011 and 7,889 square feet respectively. Both structures are planned to be three stories high and provide for multiple tenants. The smaller of the two structures is currently under construction; permits have not been issued for the larger of the two buildings.

                 o    A Planned Development has been approved for 27,500 square foot Idlers

                       on Theater Drive.

o    A McDonalds and a Chevron Service Station & Car Wash has been

                      approved for property between Highway 101 and  Ramada Drive.

                o      A Planned Development has been approved for Phase I of the 4^th and Spring Master Plan. Phase one includes a 20,600 square foot main building plus a 6,000 square foot pad.

                 o     Eagle Energy, 2400 Golden Hill Road: Phase I (underway) installation of underground tanks, service lines, new dispensers, new building concealing above ground tank, demolition of old restaurant and all street improvements; Planned Phase II and III new convenience store, car wash, fast food restaurant

               o       Firestone: A 10,000 square foot winery and visitor center has been approved by the Planning Commission for property located in the NE quadrant of the intersection of Airport and Highway 46 East.

               o       Car Wash, SW quadrant of Golden Hill and Union Road; in development     

               o       Laughlin RV Park , Gahan Place

              o        Big Brand Tire, South River Road, east of Albertsons

Industrial Development Opportunities:

1.                  Tom Erskine is marketing a 72 acre industrial park located on the north side of Highway 46 East and east of Golden Hill Road. The subject project has been fully approved by the City of Paso Robles. Project approvals have included Central Coast Crop Care, Air Flow and IQMS, all of which are in various stages of the development process.

2.                  Property on and near the Paso Robles Municipal Airport provides opportunity for both lease and for-sale industrial development. A number of projects are currently pending.

3.                  Within the Chandler Ranch Area Specific Plan boundaries there are about 73 acres of undeveloped industrially zoned property. This property is still owned by the Chandler Family / Estate Trustees. The specific plan will determine how much of this area will remain planned for industrial development.

4.                  Michael Nunno has an approved application for a 105,000 square foot industrial complex at 3500 Dry Creek Road. Additional phases of development are anticipated on the same property.

5.                  Other pending industrial developments include Central Coast Wine Storage proposing a 180,000 square foot facility at the NW corner of Airport Road and Buena Vista Drive. That project is also in the process of addressing conditions of approval established by the Planning Commission

City / City Redevelopment Agency Assisted Housing Projects:

• Creekside Gardens:  27 unit housing complex for low-income seniors (Peoples Self-Help Housing Corporation); now complete and occupied.

• Canyon Creek Apartments: 68 unit multi-family housing development (Peoples Self-Help Housing Corporation) ? under construction

• Paso Robles Non-Profit Housing Corporation: 40 unit housing complex for low-income seniors located within the Paso Robles Housing Authority property; permits are pending issuance .

• Childrens Museum (CDBG funding contribution): in plan check

Recent Annexation:

An application has been approved by the Local Agency Formation Commission (LAFCO) for annexation of 31 acres called the Linne Road Annexation Area. The area includes "Our Town" and an adjacent vacant property. This is the last of the significant annexations that are planned for in the 2025 General Plan update.

Other Projects Being Pursued:

• Industrial and Commercial Development Guidelines: scheduled for March, 2005

• Superior Court Building: The City Council approved lease of property located in the block south of City Hall in order to encourage development of a new facility for the Superior Court. Construction is anticipated to start in 2005-6.

Measure D-98 Projects:

• Niblick / Veterans Memorial Bridge - complete
• Airport Terminal - complete
• Senior and Veterans Centers ? complete
• Public Safety Center ? nearing completion
• Cuesta College Improvements - complete
• Barney Schwartz Park - complete
• 13^th Street Bridge ? construction underway, with completion anticipated by 2006