New Arroyo Grande housing development in the works

Popular online real estate sites list Arroyo Grande’s median home price at $799,900 dollars.

Affordable housing along the Central Coast, the demand and lack thereof, have been sources of contention for years. Now, a new development could be coming to the corner of South Halcyon Road and Fair Oaks Avenue.

“Any property close to a hospital or school is way high,” said Joe Tynon, making a thumbs up motion signifying the cost and demand. The Five Cities man has also lives down the street from Harlowe Elementary School for the past five years.

A mostly vacant 1.6 acre lot across the street from the Arroyo Grande Community Hospital could soon be transformed into 23 townhomes complete with a neighborhood coffee shop.

The over 69,000 square foot Fair Oaks Residential Project would include one studio, five, two-bedroom units and 17, three-bedroom units.

Although some residents have voiced concerns about increased traffic, Joe Tynon has no problems with his rental property being demolished to make way for the project

“They’re building over there, they’re building over there, so why shouldn’t they be able to build on their property,” said Tynon. “If they’ve got the money and they want to do it, let them do it. I mean everybody else is,” he said

Tynon notes that his landlord and the project applicant has been accommodating and will find him a new place to live. He hasn’t been given a timeline but was told possibly within the next year.

City officials say building up this part of town has been in discussion since the General Plan was updated in 2001

“We’ve been doing a lot of the review of the plans and environmental review and it’s gone through all the City Staff Advisory Committee and the City’s Architectural Review Committee,” said Matthew Downing, Planning Manager for the City of Arroyo Grande.

While the applicant will be paying affordable housing in-lieu fees, still no word on how much these housing units will cost if approved. Downing says that allows the city to leverage those funds and get more affordable units, usually managed by groups like HASLO or People’s Self Help Housing.

“These specifically are trying to be market rate by design, so a little bit more affordable. So they’re all in smaller lots, reduced construction costs, hopefully leading to a reduced bottom line,” said Downing.

Now it comes down to the Planning Commission.

Officials are set to discuss the proposal at their Tuesday, January 5h meeting at 6:00 p.m.

If it’s a yes, the project is a go.