Atascadero council favors incentives, not a quick cutoff, for downtown nonconforming uses

The Atascadero City Council on April 30 discussed whether to accelerate the phase‑out of nonconforming uses in the downtown commercial district but stopped short of changing the code immediately, instead asking staff to return in June with a financial incentive program.

The proposal under consideration would have shortened the current six‑month vacancy “grace period” (the time after a use shuts down before it must conform) to as little as 60 days, or eliminated the grace period when a tenant or ownership changes. Community Development Director Mr. Dunsmore asked the council for direction and noted staff was presenting options for council consideration.

"Right now, our zoning does say that ground‑floor offices around Sunken Gardens Park ... are not an allowed use," consultant Genevieve Charo said during the presentation, outlining options including a shorter discontinuance window or an immediate requirement to conform at turnover.

But council members raised practical and legal concerns. The city attorney cautioned that "the shorter the turnover period ... the more likely there is, of a challenge" in court, and council members said 60 days would be too abrupt for many small businesses, especially where ownership changes or unexpected events (illness, death) can delay transitions.

Several speakers during public comment told the council they were worried about the effect of a strict cutoff on long‑standing businesses. "I was against the ordinance change when we did it a few years back," local business owner Jeff Fosland told the council, adding that medical and dental offices can be important anchors for downtown activity.

Council members converged on a different approach: rather than immediately shrinking the discontinuance period, they expressed support for a financial incentive program to help desirable property uses relocate from downtown to more appropriate commercial corridors while keeping services in the community. City Manager Lewis confirmed staff would draft and return with a program in June.

Council also emphasized protections for small business owners and family transfers. "I think housing is tantamount," Council Member Peake said in the discussion and cautioned against losing housing by misclassifying residential properties.

The council took no code change at the meeting. The only formal action recorded on routine business was approval of the consent calendar. The council’s direction to staff was to develop possible incentive options and bring codified language back to the council for review and potential adoption.

Next steps: staff will prepare an incentive program and return to council in June with proposals and codified language for consideration.