PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.D
Meeting Date: December 16, 2025
TITLE:
Temporary Closure of a Portion of Bay Street During Construction of the Gateway Project
RECOMMENDATION:
Adopt a Resolution authorizing the temporary closure of Bay Street between Price and Dolliver streets during construction of the Gateway project and authorizing the City Engineer to issue an encroachment permit to effectuate the closure.
DISCUSSION:
On September 2, 2025 the City Council denied two appeals and upheld the Planning Commission’s approval of the Gateway project, a new three-story commercial/residential mixed-use condominium development. The project site is located over five parcels at 1481 Price Street, 1331 Price Street, and 1370 Price Street. The project includes demolition of existing residential and commercial structures onsite, new public right-of- way improvements, and creation of a public “Gateway” plaza at the corner of Price and Dolliver Streets.
Construction of the project is expected to begin in late February of 2026 and continue for approximately 18 to 24 months, weather dependent. The project involves full redevelopment of parcels on both sides of Bay Street between Price and Dolliver Streets, which will require construction crews and materials to cross Bay Street multiple times each working day. To maintain public safety and keep the public out of the active construction zone, the developer, Coastal Community Builders (CCB), has requested an encroachment permit allowing the temporary closure of Bay Street for the duration of construction. Based on the current project schedule, if approved, Bay Street would be closed at the start of construction and reopened by July 1, 2027.
CCB has provided a formal request letter and exhibit (Attachment 2) detailing the proposed closure. The City Engineer has reviewed the proposal and takes no exceptions with the request. If approved, the temporary closure would also allow CCB to place the construction trailer on Bay Street. To offset the temporary loss of street parking during construction, CCB has offered to pay a permit fee of $20,000, and a fee of $15,000 for the placement of the related trailers for the project.
Legal Considerations
California Vehicle Code Section 21101, subsection (e) authorizes the City Council to temporarily close a portion of any street for celebrations, parades, local special events, and other purposes when the closing is necessary for the safety and protection of persons using that portion of the street during the temporary closing. The proposed temporary closure of Bay Street between Price and Dolliver Streets during construction of the Gateway project is necessary to maintain public safety by keeping the public out of the active construction zone. Staff has determined that the temporary closure will not Council Agenda 12-16-2025 9.D-1
This item amended on December 12, 2025.
FISCAL IMPACT:
The fiscal impact of adopting the subject resolution is $35,000 in permit fee revenues that would be deposited in the General Fund in Fiscal Year 2026.
ATTACHMENTS:
1. Resolution
2. CCB Request Letter and Exhibit
Prepared by:
Erin Olsen, Senior Management Analyst
Submitted by: Rosemarie Gaglione, PE, Director of Public Works City Manager Approval:
Council Agenda 12-16-2025 9.D-2
significantly impede the overall flow of traffic on surrounding streets and will not eliminate circulation or access to any neighboring parcels and uses during the construction period.
Therefore, the closure of this portion of roadway is appropriate under Vehicle Code Section 21101(e).
California Streets and Highways Code Section 660 defines an "encroachment" as any tower, pole, pipe, pipeline, fence, billboard, stand, building, or any other structure or object in, under, or over any portion of a highway right-of-way. The proposed placement of a construction trailer on Bay Street during the temporary street closure constitutes an encroachment requiring an encroachment permit from the City Engineer prior to the commencement of construction activities.
Conclusion and Recommendation
Staff recommends the Council adopt a resolution (Attachment 1 ) authorizing the closure of Bay Street between Price and Dolliver Streets during the construction of the Gateway project, and authorizing the City Engineer to issue an encroachment permit to effectuate the closure.
RESOLUTION NO. R-2025-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,
CALIFORNIA AUTHORIZING THE TEMPORARY CLOSURE OF BAY STREET
BETWEEN PRICE AND DOLLIVER STREETS DURING CONSTRUCTION OF THE
GATEWAY PROJECT AND AUTHORIZING THE CITY ENGINEER TO ISSUE AN
ENCROACHMENT PERMIT TO EFFECTUATE THE CLOSURE
WHEREAS, the Gateway project is a new three-story commercial/residential mixed-use condominium development that involves full redevelopment of parcels on both sides of Bay Street between Price and Dolliver Streets; and
WHEREAS, construction of the project is expected to begin in late February of 2026 and continue for approximately 18 to 24 months; and
WHEREAS, during construction of the project construction crews and materials will need to cross Bay Street multiple times each working day; and WHEREAS, to maintain public safety and keep the public out of the active construction zone, the developer, Coastal Community Builders (CCB), has requested an encroachment permit allowing the temporary closure of the relevant portion of Bay Street for the duration of construction; and
WHEREAS, the temporary closure would also allow CCB to place the construction trailer on Bay Street; and
WHEREAS, the temporary closure of this portion of Bay Street will not significantly impede the overall flow of traffic on surrounding streets and will not eliminate circulation or access to any of the neighboring parcels and uses thereon; and WHEREAS, to offset the temporary loss of street parking during construction, CCB has offered to pay a permit fee of $20,000 and a fee of $15,000 for the placement of the construction trailer.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pismo Beach as follows:
Section 1. The City Council does hereby find, determine and declare that the portion of Bay Street between Price and Dolliver Streets, hereafter the “subject street,” is not needed for vehicular traffic during the construction of the “Gateway” project upon the parcels of land adjacent to the roadway.
Section 2. California Vehicle Code Section 21101 allows the City Council to close any highway to vehicular traffic when, in the opinion of the City Council, the highway is no longer needed for vehicular traffic.
Council Agenda 12-16-2025 9.D-3
Attachment 1
Section 3. Pursuant to California Streets and Highways Code Section 660, construction trailers and equipment placed on the subject street during the temporary closure constitute an encroachment requiring an encroachment permit from the City Engineer.
Section 4. The temporary closure of the subject street will not significantly impede the overall flow of traffic on surrounding streets, including Price Street, Dolliver Street/Highway 1, and Harloe Avenue, and will not eliminate circulation or access to any of the neighboring parcels and uses thereon.
Section 5. The City Council hereby authorizes the closure of the subject street to vehicular traffic during the construction of the “Gateway” project upon the parcels of land adjacent the roadway. This closure may be rescinded or modified by either by subsequent resolution of the City Council or by action of the City Engineer or designee.
Section 6. The City shall retain all rights in the subject streets for utility purposes and other maintenance purposes and nothing herein shall affect the rights of utility lines, structures, and other facilities in the subject street. The closure of the subject street shall be effective upon the placement of appropriate signage and barricades by the City Engineer, or designee, marking the closure of the subject street.
Section 7. The closure of the subject street is exempt from the requirements of the California Environmental Quality Act ("CEQA") under CEQA Guidelines Section 15301, as a minor alteration of existing public facilities involving negligible or no expansion of use beyond that existing at the present time, and because the closure of the subject street to vehicular traffic would not create any new significant environmental impacts.
BE IT FURTHER RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Engineer to issue an encroachment permit to effectuate the temporary closure of Bay Street between Price and Dolliver Streets during construction of the Gateway project, in accordance with the findings above.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 16th day of December 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
Council Agenda 12-16-2025 9.D-4
Attachment 1
IN WITNESS WHEREOF, I have hereunto set my hand and official seal of the City of Pismo Beach on _______________________.
________________________
Erica Inderlied, City Clerk
Council Agenda 12-16-2025 9.D-5
Attachment 1
December 10, 2025
Honorable Mayor and City Council
CCB Coastal Community Builders
Coastal Community Builders (CCB) is excited to kick off construction of Ocean Te rraces at The Gateway in Pismo Beach . We have been actively looking at the best way to deliver this project with minimal disruption to the community in the safest way possible. Since the project will consist of work on both sides of Bay Street, including the complete rebuilding of Bay Street and a complete redevelopment of the parcels on both sides of Bay Street, our risk management team has recommended the full closure of Bay Street for the duration of the project.
Through the course of the project the parcels on each side of Bay Street will be fully redeveloped, with construction crews and materials needing to cross Bay Street countless times a day. Fur ther, at various stages of construction there will be scaffolding erected around the new buildings to give construction workers access to the exterior of the building.
We expect construction to start in late February/early March of 2026 and request to be allowed to close Bay Street between Dolliver and Price Street at that time, through the duration of construction which we anticipate lasting 18 to 24 months depending on weather conditions. We expect to reopen Bay Street, if a closure is approved, by July 1, 2027.
The City's most recent traffic study, conducted in 2016 does not include traffic counts for Bay Street, however, the projects Tr ansportation Impact Analysis dated January 30, 2025, shows under existing conditions that a total of 4 vehicles per hour turn from Price Street on to Bay Street during the AM hours and 5 vehicles per hour during the PM hours. The same report shows a total of 4 vehicles per hour accessing Bay Street from Dolliver Street during the AM hours and 4 vehicles per hour during the PM hours. These traffic counts verify that closing Bay Street will have very little impact, if any, on the City's transportation system.
We feel that the risk to public health and safety is too high, and with the very low traffic volume on Bay Street this closure will have a minimal impact on the community while providing the safest working conditions for both construction crews and the public. In consideration for allowing CCB to close Bay street we would like to offer the City $20,000 payable to the general fund, to allow the city to mitigate any perceived inconvenience as a result of the closure, or in any other way the city sees fit, and an additional $15,000, also payable to the general fund, in consideration of the placement of a sales trailer in the closed portion of the Bay Street right-of-way at the approval of the City Engineer.
Thank you for your consideration, C---
Cam Boyd
CEO
CCB.Homes I PO Box 13, Pismo Beach, CA 93448 I (805) 556-3060 Building l:'.xcelle11ce 011 the Central Coast Since 19H9. Council Agenda 12-16-2025 9.D-6 Attachment 2
BAY STREET CLOSURE EXHIBIT
ovember
LEGENDBAY STREET TRAFFIC COUNTS
Council Agenda 12-16-2025 9.D-7
Attachment 2