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Atascadero approves $150,000 sale and $200,000 subsidy for Centennial Plaza mixed-use project
Summary
The City Council approved a reduced-price sale of several lots at Centennial Plaza to a private developer and a required public hearing disclosure showing the subsidy (difference between appraised value and sale price). The developer agreed to timelines and performance standards tied to the sale.
The Atascadero City Council unanimously approved the sale of several privately developable lots surrounding Centennial Plaza for $150,000 and accepted the required public disclosure of an economic-development subsidy of about $200,000.
Lorelei Capel, from the city’s economic development staff, explained the disclosure requirement under state law and summarized the subsidy: the city’s appraised value for the land is $350,000 and the sale price proposed is $150,000, yielding a reduction of roughly $200,000 that qualifies as a development subsidy under Government Code section 53083. Capel said the subsidy is intended to help catalyze a private, mixed-use project that would be difficult to build without an incentive.
Nut graf: Council and staff said the measure is meant to spur development around Sunken Gardens by making a constrained downtown parcel more feasible for a developer to build a $13 million mixed-use project intended to add ground-floor commercial uses, restaurant space and multifamily units above.
Project details and conditions: Community Development Director Phil Dunsmore described the selected proposal and the sale conditions. The buyer, Centennial Plaza Walk, LLC (developer Colin Wyrick), proposes a roughly $13 million vertical mixed-use project that the staff estimated would create about 50 jobs and generate an estimated $75,000–$100,000 in annual tax revenue when fully rented and occupied. Dunsmore said the city will retain the plaza as public space; the private sale applies only to the adjacent lots the developer will build on.
Sale conditions include a recorded set of covenants, conditions and restrictions (CC&Rs) that set performance timelines and a reversion clause. Dunsmore told council the CC&Rs require the developer to obtain permits within 18 months, construct site improvements and shell buildings and complete tenant improvements and development-fee payment on a set timetable; if the developer fails to meet the standards the CC&Rs create a mechanism for the city to seek corrective action or reversion of the property.
Trees and parking: Dunsmore noted several non-heritage oak trees on the site would be removed for the project while a large adjacent heritage tree would be preserved and the building design is "notched" to accommodate it. Council and staff also discussed parking; staff said they are working with the developer to meet minimum zoning parking requirements and try to avoid creating conflicts with the nearby school pickup/drop-off circulation.
Council action: Councilmember Peake moved to adopt the public disclosure and approve the subsidy information required under Government Code section 53083; Councilmember Newsom seconded. Council later voted to authorize the city manager to execute the purchase agreement with the developer; that motion was moved by Councilmember Funk and seconded by Mayor Pro Tem Mark Deras. Both actions passed unanimously.
Ending: Staff will post the required subsidy disclosures on the city website and proceed with escrow and the sale under the agreed CC&Rs; the CC&Rs and sale documents set specific performance milestones staff said are intended to ensure the development proceeds rather than being flipped without construction.
