Board approves revised Cayucos lodging project after neighbors’ parking and massing objections

The San Luis Obispo County Board of Supervisors on July 8 approved a revised minor-use permit and coastal development permit for a lodging project on South Ocean Avenue in Cayucos, resolving appeals filed by neighbors who warned the development would worsen downtown parking and change the town’s character.

Planning staff told the board the applicant, Uriah Donaldson, revised the proposal after prior direction from the board: one commercial lodging unit was converted to a common room and deck, a caretaker unit became a residential unit, four compact spaces were replaced with full-size stalls and the project now provides seven full-size parking spaces. Staff recommended the board find the revised project exempt from the California Environmental Quality Act and adopt conditions of approval.

Multiple residents who live near the site told the board the building remains too large for downtown Cayucos and that the proposed common area and bathroom could be used as additional sleeping space, increasing demand for on-street parking. "Insufficient parking spaces absolutely will cause problems for all the neighboring properties," said appellant Vicki Tamouche.

The project’s architect, Tom Jess of ARRIS Studio Architects, and other supporters said the applicant had worked with neighbors and reduced the number of rentable rooms from three to two, added accessibility features and retained buffers. Jess stated the common room is an amenity for motel guests and residents and "is not open to the public."

Supervisor Bruce Gibson said staff’s revised conditions should explicitly state that the common-area room is for motel guests and occupants of the residential unit only and "not to be used for sleeping or rented separately for public access." The board added that language and adopted the revised resolution, findings and conditions in a motion moved by Supervisor Gibson and seconded by Supervisor Paulding. The motion passed unanimously.

Board members also discussed stormwater and drainage: staff said drainage plans will be reviewed and certified by Public Works at building permit review and that the project must not exacerbate existing public drainage deficiencies.

Next steps: staff will finalize the resolution language and incorporate the board’s condition limiting the common-area use; the project proceeds to building-permit review and any required drainage plan review by Public Works.