Appeal of
Planning Commission Approval
of the Gateway Project
(P24-000074) for a Coastal Development Permit,
Conditional Use Permit, Vesting Tentative Tract
Map, and Architectural Review Permit
Agenda Item 11.A
Scot Graham, Community Development Director
September 2, 2025
Project Description
The Gateway Project is a mixed-use condominium project located at 1481 Price on 1.2 acres bounded by Price, Dolliver, Bay and Harloe Avenue. The project is proposed under State Density Bonus Law and under the provisions of Senate Bill 330. Specifically, the project includes:
•Demolition of existing improvements and construction 4 commercial condominium units totaling 5,700 sf & 39 residential condominium units. Residential unit mix includes five of the 39 units as deed restricted for low- and very-low-income households. The vesting tentative tract map includes 43 condominiums over two lots bisected by Bay Street. •Creation of a “Gateway” plaza as a public amenity benefit with distinctive “Welcome to Pismo Beach” signage, information board, water fountain feature, and public seating. •21 new additional angled & parallel parking space centralized along Price to promote pedestrian access and commercial shopping areas. •As a Density Bonus project, the Project includes a request for 1 concession and 3 waivers : Parking, Height, Setbacks, and Fence/Wall Height. •Conversion of Bay Street to a one-way street west to east with landscape street corner bulb-outs.
Project Description
Bay Street Conversion
•The Planning Commission approval included a Council recommendation for conversion of Bay Street to one-way(Dolliver to Price Street). The conversion was evaluated in a traffic study.
Density Bonus Law
•The Gateway Project is the first density bonus law/Senate Bill 330 project proposed by a private applicant. State Density Bonus law is legislation aimed at encouraging production of affordable housing. The Applicant’s proposal of 10% of units as affordable entitles the project to an increase in residential density beyond the City’s normal base density identified in the General Plan. As a result, the law entitles the applicant to one “concession” and an unlimited number of “waivers” to facilitate the development of affordable housing. This is consistent with the City’s Housing Element which states the City will encourage and assist developments to utilize the density bonus provisions of the California Government Code. •The identified concession and waivers have been reduced from the June 10th PC meeting. They include:
Concession: 21 parking spaces. The project provides 66 on-site parking spaces where 87 would be required leaving a deficit of 21 spaces. The applicant, though not required, is proposing to construct public improvements including 21 street parking spaces and payment for 3 parking in-lieu spaces.
Waivers : The request includes a waiver for building height, reduced setback, and an increase in the rear fence/wall height of Building 2. The waivers requested are necessary to support the increased density request pursuant to State Density Bonus Law.
Site Plan
On-site
parking
entrances
Gateway
Plaza
One-way Bay St.
On-site
parking
entrance
New angled & parallel
parking
Harloe Ave.
Project Revisions since 6/10/25 PC meeting
1. Parking
-Plans have been updated since the PC approval to add one additional street space for a total of 21 which is equivalent to the density bonus concession request. -Applicant proposes paying for 3 parking in-lieu spaces ($27,000) as an additional public benefit.
2. Two Waivers Removed
-lot coverage
-landscaping
3. Water Fountain Feature
PC requested a change to the proposed round water fountain feature to a clamshell design consistent with the Downtown Strategic Plan clam design. The clam design was also shown to PRBC at its 8/21/25 meeting.
4. Alternative Canopy Design
Applicant has submitted a Design Revision option that removes the plaza canopy feature. Should the Council uphold the PC approval of the project, staff is requesting Council direction on the canopy design option.
Roof Canopy
Alternative
Design
before &
after
Sleumer Appeal
Appeal #1 filed by Ms. Cindy Sleumer is appealing all permits approved by PC:
Setback Inconsistencies. Appellant requests that the PC resolution be amended to identify the correct setbacks and notes inconsistencies in the plans and also requests that the resolution match plan sheet T15. Appellant also requests the project not allow setbacks at zero feet, and states balconies on Building 2 encroach into required setbacks. •Staff Response: Project is located in the C-1 and RR zone districts which includes different setback requirements. Plan sheet inconsistencies have been resolved. Portions of the project where a setback waiver is requested are shown on plan sheet T15 and identified in the resolution separated out by C-1 and RR requirements. Building 2 balconies are located in both C-1 and RR zones which have different setback requirement. The required RR rear setback is 9’6” and required C-1 setback is 0’ and balconies proposed comply with these setbacks.
Kramb Appeal
Appeal #2 filed by Mr. Robert Kramb is appealing only the coastal development permit:
Lack of Notice/Story Poles. Appellant states that story poles were not erected as part of PC approval. Appellant also stated there was insufficient public outreach. •Staff Response: The LCP does not require story poles as part of the analysis, and no consensus or direction by PC was given to staff or the applicant. There were three noticed PC meetings to discuss the project.
Outdated traffic study maps. Appellant states the PC approval did not consider the increased parking and circulation impacts. Appellant request Caltrans perform a traffic analysis. •Staff Response: The project included a traffic study. The traffic study evaluated impacts by the proposed project, existing and cumulative conditions, traffic collision data, site access, and circulation for the proposed project including the proposal to convert Bay Street to one-way and which was the recommended direction.
Kramb Appeal cont.
Appeal #2 filed by Mr. Robert Kramb is appealing only the coastal development permit:
Traffic Study Maps. Appellant stated that the roundabout drawing will require Caltrans to evaluate and requests the project be halted until studies are complete. •Staff Response: Public Works conditioned the project to show area of a future roundabout which is shown on plans. This requirement is to determine if property dedication would be required. It does not trigger a requirement for evaluating a roundabout as this would be a future City project consistent with the Circulation Element.
Common Sense Approach, Safety Warning Flags. Appellant alleges that developer has requested entire parking sections on Price Street be allocated to project which will increase traffic congestion and create circulation and parking impacts. Appellant requests project be halted. •Staff Response: The proposed additional parking spaces are not allocated to the project. As a density bonus project, the Applicant is entitled to a concession of 21 parking spaces. The proposed public improvements are voluntary improvements as a public benefit to off-set the request for a concession.
Conclusion
The Gateway Project, proposed under the provisions of state density bonus law and SB 330, includes a concession for 21 parking spaces, and a waiver of the maximum building height, setback encroachment, and increase of maximum fence height for Building 2, which is necessary to support the increased residential density.
The appeals filed do not cite an inconsistency with the City’s General Plan, Local Coastal Program (LCP), or any Municipal Code requirement.
Update were made to project plans to address community feedback related to parking and design as well as correct setback inconsistencies. The revised plans also include compliance with the previously requested waivers for lot coverage and landscaping.
Project also includes a design alternative for the Plaza roof canopy and a water fountain design change, incorporating a clam feature.
Planning Commission found the project consistent with the City’s General Plan/Local Coastal Program and Zoning Code, as well as State law.
Decision Points for Council
Appeals – Deny or Uphold
-Sleumer
-Kramb
Bay Street
-One-way or two-way
Plaza Canopy
-Remove or keep the canopy
Recommendation
Staff recommends that the City Council adopt a resolution denying both appeals and upholding the June 10, 2025 Planning Commission approval (PC-R-2025-013) of the Project associated with Project No.
P24-000074 which includes conversion of Bay Street to one way, based on the findings set forth in the City Council Resolution, followed by direction regarding the proposed alternative Gateway Plaza roof canopy design.
Questions
Perspective Views
South Elevation – Building 2
Perspective –
Gateway
Plaza and
along Dolliver
Perspective –
corner of Bay
& Dolliver
Perspective Views
South Elevation – Building 2
Perspective –
Price and Bay
Streets
Perspective –
corner of Bay
& Dolliver
Architectural Elevations
South Elevation – Building 1West Elevation – Building 1 Streetscape view from Price Street
looking north
East Elevation – Building 1
Architectural Elevations
South Elevation – Building 2North Elevation at Bay
Street – Building 2
East Elevation – Building 2
West Elevation – Building 2