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City pauses Phase 1 contract for Los Osos site to explore broader redevelopment after retail vacancies
Summary
City Manager reported the city will temporarily pause awarding the Phase 1 construction contract for the Los Osos project (north parking/Phase 1) to allow further due diligence and to consider a more comprehensive plan in light of recent retail closures at the center.
At the April 8 council meeting the City Manager provided an update on the Los Osos redevelopment and said the city is pausing awarding a Phase 1 construction contract for the North Basso parking area.
The manager said the city received bids but recent and impending retail vacancies at the center — including major tenants leaving — present an opportunity to re-evaluate whether a phased approach or a broader redevelopment plan would better serve long-term downtown goals. "We are temporarily pausing awarding the construction contract for phase 1... This design delay has given the city some time to further explore and evaluate our options," the manager said.
The pause is intended to allow staff to pursue additional due diligence and to continue outreach to property owners and potential partners. The manager said the city remains committed to its downtown vision and that, in the meantime, the site will continue to host farmers markets, night markets and community events. City staff also noted several temporary cosmetic improvements already made to the site.
No formal contract award occurred at the meeting; the pause leaves bids on the table while the city evaluates whether a public-private partnership or larger plan could yield a more comprehensive outcome.
