City Council upholds approval of Waterman Village affordable-housing project, denies appeal

San Luis Obispo City Council voted 5-0 on March 4 to deny an appeal of the Planning Commission’s December decision approving the Waterman Village project at 466 Dana Street, a proposal that would rehabilitate the historic Rosa Bertrand Adobe and add 20 low- and very low‑income housing units on the site.

The council’s action upholds the Planning Commission’s adoption of an initial study/mitigated negative declaration under CEQA and approval of land‑use entitlements, including a parking reduction requested under the California density bonus law. Staff and the city attorney recommended denying the appeal, saying the project honors the donor’s request that the adobe and trees be maintained for park or recreational purposes and does not violate the grant deed.

The case mattered because the property was conveyed to the city in 1989 by Mary Gail Black with a grant deed that asks the city to “maintain the adobe and two adjoining wings … and the trees on that property … for park or recreational purposes.” The appellant, represented by members of the San Luis Obispo Property and Business Owners Association, argued the deed imposes an enforceable restriction that disallows the proposed residential use. City staff and the city attorney told council the grant deed contains a mix of binding covenants and nonbinding requests; on its face the “request” language is not an express material restriction. City legal staff reviewed precedent cited by the appellant and concluded those cases were not analogous.

Project details and…