“The Marketplace”
August 2000
Viewpoint Article
by Dave Romero
In August 1994, after years of studies, reports and spirited public hearings, the City Council finally adopted the Land Use Element of the General Plan. The policy section states, "Prime agricultural land…should be protected for farming." The more specific (and therefore controlling) section of the Land Use Element reads as follows:
"E) Dalidio area properties…shall dedicate land or easements for the approximately one-half of each ownership that is to be preserved as open space." The map showing Principal Expansion Areas shows commercial development of the Dalidio property of approximately the same size and shape as the Marketplace proposal now being considered by the City.
The Open Space Element was adopted in January 1994. It too was subjected to endless studies and hearings. The policy section states "The southern portion of the Dalidio property…should be preserved as agriculture. The site map in the element shows open space on the southerly half of the Dalidio property, shaped around the property proposed for commercial use by the Marketplace.
The Circulation Element was adopted in November 1994 after even greater number of studies and contentious hearings. The Circulation Element map shows an interchange at Prado Road and Highway 101, with a future arterial road connection to Madonna Road. Specific programs in the text of the element call for construction of the interchange and construction of the road connection, with current development paying a major portion of the cost and future developments being assessed for a share at some future time.
With these General Plan policies in place, the developer of the Marketplace started the long and arduous process for City approval of the commercial development. During the past five years, the developer has modified the project extensively to meet requirements for "good design." The developer funded a study for the City to hire a consultant to determine a) whether the project would have an adverse effect on existing City businesses, and b) a means by which the interchange could be funded, with each party paying a fair share. This consultant study showed the project would cause some adverse effect on a few existing SLO businesses, but a major benefit for businesses in general in SLO City. The Marketplace is projected to generate over one million dollars per year in new sales tax to the City.
After the Marketplace project progressed through the City planning process to determine the general form of the shopping center and the preliminary design and cost of the interchange, the City and developer entered into a memorandum of understanding (MOU). This is a non-binding agreement that outlines the general terms conditions for constructing and financing the interchange. The City was assisted by our consultant, Allan Kotin, who has considerable experience in this field.
On July 12, 2000 the Planning Commission recommended approval of the annexation, the zoning and the environmental impact report (more than two inches thick). Next step is City Council approval of those same items, so the annexation can process through LAFCO, city-county tax sharing can be worked out, and the Development Agreement (binding) worked out between the City and the developer. The plans and specs can be prepared for the interchange and Prado Road Extension, and renderings can be prepared for architectural approval of the shopping center. There is still a long way to go with no firm assurance for the developer that the City will finally approve the project–a huge gamble.
Why is there so much controversy with a project that complies precisely with detailed provisions of the General Plan elements adopted in 1994? General Plan elements often require compromises between strongly held views. Some individuals are not satisfied and will do all that they can do to change to provisions more to their way of thinking.
Major concern expressed, and my views follow:
1. Don’t allow the loss of Prime Ag Land.
The preservation of farmland within the City is contrary to the "Compact Urban Form" concept of the vision statement of the Land Use Element. The compromise of one half development and one half open space worked out in the General Plan documents, has dissatisfied individuals on either side. My preference would be to preserve ag and open space land outside the Urban Reserve Line.
2. They don’t make any more Prime Ag Land.
Prime Ag Land by definition must be irrigated and tilled. And yes, they do make more Prime Ag Land. Just recently thousands of acres in the San Joaquin Valley have been created with the water supplied by the state aqueduct.
3. We don’t need any more big box stores.
Studies conducted during the General Plan updates in 1994 showed that at "build-out" (I have a terrible problem with that term) around 2022 we would need the amount of commercial property shown on the plan–which includes the Marketplace development. More recent studies show SLO is now losing hundreds of thousands of dollars in sales tax revenues to better stores in nearby cities. There are few stores in SLO that serve needs of young families. (My wife tells me mature ladies need shopping facilities also). Yes, we need at least some "medium box" stores.
4. I don’t like the deal the City has worked out with the developer to fund the interchange.
The City has recognized the need for an interchange at Prado Road for more than 20 years as traffic congestion continues to worsen in that area. Caltrans no longer funds interchanges primarily to serve local needs. SLO City is having great difficulty in maintaining our existing street system, much less build interchanges. In my view, it is of great good fortune to find a developer who will fund and build the interchange, with a payback from sales tax generated by his development. The City will be able to ease traffic problems in that entire area, with minimal cash and minimal risk.
It appears that the Marketplace project will be on hold for a few months–perhaps longer. However, there is a need for traffic improvement in the area and for more "medium box" type shopping in SLO City. I have no doubt that next year or within a few years, a shopping center will be developed at this site. Why not sooner rather than later?
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