BY STEVEN T. JONES

San Luis Obispo County is in the midst of its biggest growth spurt since the boom times of the late ’80s, fueled by a strong economy, a backlog of approved projects, streamlined approval processes, and pro-development policymakers.

Officials in planning and building departments at the county and each of our seven cities say these are crazy days, using adjectives like "hectic," "wild," "gangbusters," and "stressful."

"We’re on a treadmill of just trying to keep up with the [building] permits, and to do these major projects, so it stresses the system," said county planning director Alex Hinds. "And our employees."

The economy–with its low interest rates and high home prices–has prompted many residents of Los Angeles and other urban centers to cash out and go for lifestyle, building big new homes in SLO County, Hinds said.

Also pulling building permits at a rapid rate are developers, many whose projects were approved in the early ’90s or even earlier, who are just now able to get the financing to start breaking ground. And, of course, some SLO locals also see now as the time to build an addition or new home.

The county issued 2,614 building permits in the last fiscal year, which ended June 30. Of those, 815 were for new single-family homes with a total valuation of $154 million. All three figures are the highest since 1989-90 and are mirrored by the numbers in many cities.

Already in 1998 Paso Robles has issued 205 building permits for new homes, more than any full year in the ’90s. That’s especially remarkable given that the city kept growing through the economic lull faster than any other.

"There’s been a significant increase in activity this year," said Ed Gallagher, the housing programs manager in Paso.

The county and cities are also processing an unusually large number of new development proposals, some on a scale never before seen in the county.

From the 1,320-home Woodlands project on the Nipomo Mesa to a 1-million-square-foot business park near Arroyo Grande to a 1,100-home project in San Luis Obispo to the contentious Hearst Ranch Resort project near San Simeon, ambitious developers are aiming high.

And with solidly pro-growth majorities on the Board of Supervisors and most city councils, some observers believe that San Luis Obispo County is on the verge of a dramatic transformation.

Boom Times

Ask Leslie Halls if she’s had a busy year and you’ll elicit weary laughter.

As executive director of the San Luis Obispo County Builder’s Exchange, she tracks upcoming construction projects and maintains a library of development information used by the 550 members, ranging from big developers like Alex Madonna down to the smallest-scale contractor.

"It’s been the busiest year in the last 10 years; that’s what all my builders are telling me," Halls said. "Last fall and winter it started, and it hasn’t let up."

Her observations are echoed by many planners, who say the current boom began about a year ago and has only gathered momentum since then.

"People who held off on doing things are finally getting going," Halls said. "There was a real pent-up demand."

Official sources agree.

"We’re seeing maps approved five, six, seven years ago that are now getting built," said senior county planner Pat Beck.

Ironically, it was the contentious county growth control ordinance hearings in 1989–which resulted in a growth cap of 2.3 percent per year on new building permits–that began to create the big backlog of projects. In 1989-90, the county was hit with 8,240 building permit applications, triple the number in average years, because people wanted to pull their permits before the cap was implemented.

"The county adopted growth management, so we got about three years worth of work in one month," Beck said.

Many of those projects that slipped in under the wire are still active projects, with some just now being built. In addition to local time extensions, the California Legislature also responded to the economic lull of the early ’90s with legislation giving all approved development projects in the state an automatic three-year extension.

Local process changes, implemented by the county in 1994 under the "permit streamlining" banner, also made developing land much easier, subjecting applicants to fewer hearings and mandating that staff turn around projects more quickly.

While all development maps for county projects went to the Board of Supervisors before 1994, now most approvals are given by the Subdivision Review Board (made up of top staffers) or the Planning Commission.

As a result of these factors and others, the county in 1997 came close to hitting the growth cap for the first time and would have exceeded it if not for the long list of exempt projects, including secondary units and vested subdivisions, not to mention all commercial projects. In addition, unused permits from one year are carried over to the next, expanding the cap.

"Without the exemptions, we’ve generally met or exceeded the cap for the last four years," said Larry Kelly, the senior county planner in charge of growth cap calculations.

In addition to more development, the value of the homes being built is generally higher than in years past, with a glut of expensive custom homes now being built in Atascadero and other cities.

"We’re seeing just a ton of activity," said Paul Saldana, Atascadero’s community and economic development director, noting an increase in the construction of homes in the 4,200- to 5,000-square-foot range. "The economy is back in full swing and people are investing money."

On the commercial side, the doors of San Luis Obispo County have been swung wide open to the major national chain stores, first in the North County with Wal-Mart and Targets and satellite stores, then into the South County with the Wal-Mart-anchored 360,000-square-foot Five Cities Town Center, which is now under construction. By comparison, SLO’s Central Coast Mall is 250,000 square feet. But that, too, may be growing.

After clearing the city’s Architectural Review Committee (the hearing is set for Nov. 2), most of the Central Coast Mall could be torn down and replaced by big-box retailers, with a similar type of chain store clientele targeted for the Dalidio property right next-door.

San Luis Marketplace, the name given to the 500,000-square-foot Dalidio project, would likely include a Target, a HomeBase, and smaller shops, said community development director Arnold Jonas, who said the environmental review is about to begin, with hearings expected in the spring.

Because of a running feud with the city, Alex Madonna is opting to develop his massive Eagle Hardware project along Los Osos Valley Road as a county project, with that project going before the county Planning Commission today (Oct. 22).

All of this growth is good news for those who want more shopping opportunities, or who are in the housing market, or who work in the building and construction trades. Actually, from a purely fiscal perspective, some say it’s good for all of us.

Halls said the strong economy that's prompting the growth will only improve the local economy even more, citing studies showing that every dollar spent on construction ripples out across all segments of the local economy, multiplying as much as seven times.

"It does feed on itself," she said. "It mean the guys will go buy a new truck, or some new equipment, or maybe do an addition on their own house."

And if growth really is good, then the good times could keep rolling for years to come.

The Future

For big proposals, they certainly do move fast. And before you know it, massive developments that nobody saw coming have the approvals they need to start breaking ground.

Take the Woodlands project, for example. While a major project at the site has been discussed for several years, and allowed for in the South County Area Plan, it seemed to many to pop out of nowhere this fall, but it could have all the approvals it needs this winter.

"Most people in Nipomo are unaware of this project," Nipomo resident Art Mogilefsky told the Planning Commission on Oct. 8.

Planning commissioners were presented with the staff report, the 641-page EIR, and equally hefty supporting documents less than a week before the first hearing in September. This for a project that planners say is among the biggest ever proposed for San Luis Obispo County and certainly the biggest in at least 10 years.

"It’s all coming so fast," Shirley Bianchi, a planning commissioner and candidate for supervisor, said this week. "I just got another four inches of reading I’m supposed to do by Oct. 22," referring to the Eagle Hardware project.

In fact, staff is trying to move a package of General Plan amendments–all large and controversial projects–quickly through the process because the Board of Supervisors has reportedly given that direction.

"They are interested in having it to them as part of this cycle," Beck said.

In fact, the apparent desire of supervisors to get these projects approved is even being cited by project proponents as an argument against doing a detailed review of the projects and holding additional public hearings.

"There are going to be some very disappointed board members if they don’t get it during their term in office," Vic Montgomery, owner of RRM Design, which is doing the Woodlands project along with PH Property Development Co., told the Planning Commission during the Oct. 8 hearing, as the possibility of additional hearings was discussed.

At that same hearing, the Planning Commission gave conceptual approval to Harbor Terrace, a 147-unit hotel and commercial center at Port San Luis; and to a 33-lot residential subdivision on Los Osos Valley Road and Valle Vista Place, a project just outside San Luis Obispo city limits that was opposed by the city.

Those two projects, and Eagle and the Woodlands, are the package expected to go before the Board of Supervisors this winter. All are amendments to the county General Plan, which may only be changed three times a year, thus requiring such groupings of projects.

A review of actions by the Board of Supervisors on development issues over the last year reveals what many even casual observers already know: The triad of supervisors Mike Ryan, Harry Ovitt, and Ruth Brackett consistently approves projects and concessions to developers over the objections of supervisors Bud Laurent and Peg Pinard–and often county staff.

Supporting Hearst Ranch Resort and East West Ranch developments, waiving an economic study requirement for Eagle Hardware, approving residential construction in Cayucos, waiving developer fees for the Holland project in Los Osos, approving the Dunning Winery expansion, approving the Cabrillo Estates project in Los Osos, refusing to accept Coastal Commission modifications to the North Coast Area Plan–all were votes along the same 3-2 lines taken by the board over the last year.

The voting pattern and public comments by Ovitt, Brackett, and Ryan reveal a stark philosophical bent on the issue of growth. These three like growth. They feel it stimulates the economy, creates jobs, provides needed housing. And they believe deeply in private property rights, in the rights to use your land for its highest and best use, and have regularly shown official sympathy (with time extensions and fee waivers) to developers experiencing problems either because of economics or regulations.

The election in two weeks probably won’t impact the balance of power on the Board of Supervisors, because of the pro-growth majority only Brackett is leaving and she'll be replaced by either Orrin Cocks or Katcho Achadjian, both of whom voice pro-growth philosophies.

Nonetheless, the current growth boom and a few controversial projects have made the growth question a hotter issue than it has been in a while as the races heat up in places like Arroyo Grande, Atascadero, and the county’s 2nd Supervisorial District.