City Council explores zoning incentives to revitalize Kmart site in Atascadero

The Planning Commission Meeting held on April 1, 2025, in Atascadero, California, focused on several key issues affecting the city's development and infrastructure. The meeting began with discussions on the need for policies that incentivize redevelopment, particularly concerning a vacant property previously occupied by Kmart. City officials expressed frustration over the lack of progress on this site, emphasizing the importance of zoning changes to encourage mixed-use development and reduce parking requirements. The Economic Development Director, Lorelei Kapold, is actively working with potential tenants for the property, although no formal plans have been submitted yet.

Public comments highlighted community concerns, including the need for additional grocery stores on the South Side of town and the potential for a new fire station. Residents voiced their desire for more commercial development and affordable housing, stressing the importance of maintaining zoning for industrial and commercial use rather than converting these areas into residential zones. One resident, David Athey, raised concerns about proposed downzoning of certain properties, arguing that it restricts future development opportunities.

The commission addressed these public inquiries, confirming that a grocery store is planned for the Dove Creek area, although the specifics of the store's size and type remain unclear. Regarding fire services, plans are underway to upgrade Fire Station Number 1 and enhance Fire Station Number 2 on the South Side, with a potential site for a future Fire Station Number 3 being considered.

The meeting concluded with a discussion on the general plan and zoning regulations, clarifying that while the general plan outlines broad objectives, specific development standards will be determined through zoning and permitting processes. The commission acknowledged the need for flexibility in the general plan to accommodate future development while ensuring that community needs are met. Overall, the meeting underscored the city's commitment to fostering economic growth and addressing resident concerns through strategic planning and development initiatives.