Atascadero planning commissioners review draft mixed‑use zoning map, flag redevelopment limits at Kmart site

Atascadero City planning staff presented proposed mixed‑use zoning districts and associated development standards to the Planning Commission on April 21 as part of the broader general plan update.

The presentation, led by Phil of the Community Development Department, outlined four mixed‑use districts intended to concentrate housing and commercial activity at defined nodes. "Mixed use is both commercial and a residential land use combined," Phil said, describing the purpose as creating "a vibrant activity node" on underutilized sites from the northern corridor into southern commercial strips. Staff said the draft map applies new mixed‑use designations along El Camino Real, Morrow Road, Del Rio Road and selected freeway corridors, while downtown retains existing mixed‑use allowances.

Why it matters: the new zones will set density, height and use rules that shape future redevelopment and investment. For higher‑intensity parcels (MU‑4), staff proposed a 36 dwelling‑units‑per‑acre target, a 35‑foot height limit with a 10‑foot architectural allowance, and flexible setbacks to accommodate larger commercial sites. For more transition‑oriented areas (MU‑2), staff proposed a 24 du/acre cap, a 15‑foot minimum front setback and a requirement that the primary ground‑floor frontage remain commercial to preserve a street‑front presence.

Commissioners pressed staff on specific constraints. Commissioner Jones disclosed a family property interest in a MU‑3 area and said he would recuse himself from that section. On the broader north‑end redevelopment question, Jones argued the former Kmart and adjacent Ford/Auction parcels are key sites for reinvestment but said the city has previously required corridor mitigation that made development difficult. "If that's still the city's position, I think we need the maximum flexibility to attract investment," Jones said.

Staff responded that interchange and traffic capacity are major constraints. "Drive‑through land uses are prohibited on the Kmart site because of that," Phil said, and added that several interchanges date from the 1950s and are undersized, which limits land‑use options until regional improvements or funding occur.

The commission also focused on parking and practical design. Commissioners asked whether the city would offer in‑lieu parking fees or other incentives; staff said no in‑lieu program exists now and that, in practice, developers often insist on on‑site parking even when exceptions are available. Kelly, a planning staff member, noted administrative use permits could allow 100% residential on some smaller MU‑1 parcels where commercial viability is not feasible.

What commissioners asked for: feedback on differing densities, clearer treatment for existing uses such as animal care services (staff said Woods Humane Society would be accommodated in use tables), and continued attention to where the MU lines fall, including whether commercial nodes like the Kmart site and nearby properties should be treated differently.

The commission took no zoning action. The discussion is part of an iterative public review process; staff said they will return with additional zoning sections and receive public input before sending zoning and the general plan forward.

The Planning Commission also approved the consent calendar, including the draft minutes, by roll call vote (five yes, two absent).