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Council directs staff to refocus East Grand Avenue RFP on housing, zoning tools and implementation

Arroyo Grande City Council · June 9, 2026
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Summary

After a long study session, council instructed staff to retool the East Grand Avenue economic development RFP to fast‑track corridor mixed‑use implementation, emphasize housing, and identify tools — such as objective design standards, development agreements and incremental streetscape steps — to attract developers.

The Arroyo Grande City Council spent an extended study session on June 9 reviewing plans and a draft request for proposals (RFP) intended to spur redevelopment of East Grand Avenue between Elm Street and Houseion Road. Planning Manager Andrew Perez presented objectives and components for an economic development plan and solicited council guidance on priorities.

Perez summarized prior work (a 2016–17 master plan and more recent analyses tied to the city's general‑plan update) and explained the draft RFP's three main components: a focused market and existing‑conditions analysis, stakeholder and community engagement, and recommendations with implementation strategies such as land‑use changes, beautification projects, parking management and incentive programs.

Council members debated the RFP's scope. Some members urged narrowing the focus to implementation‑oriented work that helps produce development — for example, refining the new corridor mixed‑use zoning, creating objective design standards, evaluating development agreements and public‑private partnership tools, and proving whether a road diet or incremental streetscape changes could work. Others emphasized broader community engagement, walkability, arts and entertainment amenities and careful coordination with regional studies (SLOCOG).

After discussion, staff said it would retool the RFP to prioritize corridor mixed‑use implementation, highlight housing (including higher residential density allowed under the new general‑plan designation), and identify specific tools and incentives to encourage development. City Manager Matt Downing said staff would bring a revised RFP to consent for council review before releasing it for consultant proposals.

Outcome: Direction to staff to revise the RFP, with an emphasis on housing, objective design standards, development incentives and coordination with regional transportation analyses.