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Controversial Cayucos Motel Project Returns

BN Cayucos Proj-02

A controversial Cayucos motel project is up for consideration again before the Coastal Commission, and this time the staff is recommending it be approved.

Under appeal since 2009, the Cayucos Del Mar project is proposed for a commercial property at the corner of Old Creek Road and Ocean Boulevard just off Hwy 1, a one-time gas station now an art gallery, in southern Cayucos.

The applicant, Franco DeCicco of Morro Bay, proposes to subdivide four parcels into five and build a 4-unit residential multi-family condominium project and an 18-room hotel with underground hotel parking, landscaping, drainage and other improvements, according to a Coastal Commission staff report, available online at: www.coastal.ca.gov/mtgcurr.html.

The hearing is set for Friday, Sept. 9 at the Newport Beach Civic Center’s, City Council Chambers,
100 Civic Center Dr.,
Newport Beach.

The total area of the new buildings is some 64,000 square feet and is changed considerably from the initial proposal that went before the County Supervisors in October 2008. Supervisors approved the project, despite much opposition from the neighbors, who didn’t like the use, the size, the design, and more.

Originally, DeCicco argued the property was not in the Coastal Commission’s appeal jurisdiction, but in August 2009, the Commission decided that it did have jurisdiction because of the subdivision of the property.

The staff report said the subdivision “is not a principally-permitted use in either the Residential Multi- Family (RMF) or Commercial Retail (CR) land use categories…” So the opponents were allowed to appeal the project and did so. That November the commission decided to accept the appeals, finding “substantial issue” and took control of issuance of a coastal development permit.

“The primary reasons for the Substantial Issue determination,” reads the staff report, “were related to the overall mass and scale of the development in relation to neighborhood compatibility, underground parking concerns, and unclear hotel operational standards.”

The DeCiccos sued the Commission challenging the findings but after several years of litigation, the Coastal Commission prevailed. The project has lingered in part due to the economic downturn, and in late 2015, the applicants approached the Commission about picking up the appeal process again and proceeding with a hearing.

They’ve apparently worked out their differences, as the recommendation now is for approval. “Since then, staff has communicated and collaborated closely with the Applicant in order to obtain project revisions required to find the project consistent with the LCP.”

The lengthy list of conditions for the project has resulted in some significant changes.

“The Applicant proposes to reduce the number of units on the third floor of the hotel and include variations in coloring and architecture to help break up the apparent massing of the hotel and residential components,” the report said. “The revised project also locates all required parking for the hotel underneath the hotel portion of the site.

“In terms of size, scale, and character, the proposed project would introduce approximately 64,000-square-feet of structural development, including a three-story hotel, to a site that is essentially vacant except for an approximately 1,000 s.f., single-story building in overall disrepair.”

The motel will not be a traditional model, a single room with a bathroom. Instead the proposal is to have the rooms be more like vacation rentals, with full kitchens, 2-bedroom suites and the capability of sleeping from six to 10 people. The Commission staff agrees with the assertion that they will be affordable units.

“Instead of needing to reserve multiple standard double-occupancy rooms at market rate, a family or group of visitors can take advantage of the higher occupancy allowed for in the proposed accommodations, with no increase in the room rate.”

And with kitchens or kitchenettes, and gas grills, the guests won’t have to go out for dinner to local restaurants, further saving money.

“These are amenities that make the hotel more accessible to the general public,” the report said, “because it may allow visitors to justify staying at these accommodations by compensating for other travel costs [e.g., food]. In addition, the proposed project does not displace any existing overnight accommodations and is not located in a visitor-serving overlay zoning [combining designation] district.”

And, “Given all of these factors, staff agrees that, in this case, and given the limited mix of similar hotel offerings in this area, the design of the hotel increases affordability for families and other groups, and therefore, it would be more appropriate to characterize the proposed project as primarily moderate-cost.”

But with kitchens already installed, some fear the motel could be turned into permanent housing. DeCicco hired McCabe & Company, a consulting firm specializing in dealing with the Coastal Commission, to respond to the concerns. “The applicant has no desire or inclination to convert the hotel units to residential use,” wrote Anne Blemker, with McCabe & Co. “In actuality, the conversion/use/sale of the units as anything other than for hotel use is precluded by the County of San Luis Obispo’s approval of the project, which would likely be carried over into the Coastal Commission’s conditions of approval.”

To change the use, Blemker said, they’d have to amend the coastal development permit first, which would mean going back to the Coastal Commission.

In letters to the Commission, neighbors raise the same objections as before — its size, mass and traffic. Julie Sanders, who lives across the street wrote, “I may or may not lose the little ocean view that I have but I will lose much of the afternoon sun. Besides having a single story house that will be dwarfed by the 3-story monstrosity Mr. DeCicco wants to build, the structure is just too big for this neighborhood. Your department shut him down few years ago and he has changed his plans minimally and is still unacceptable.”

Connie Paine noted that back in 2008 the project was brought before the Cayucos Citizens Advisory Council (CCAC), which flat out rejected it. In a letter to County Supervisors, CCAC said, “The project could not be supported as presented, because of its being out of character with the neighborhood and town.”

She adds that he new project design is still three stories, 220-feet long and 30-feet high. “It still remains a continuous wall combining the hotel and residential units even after the Planning Dept., requested separation. Will using a different color scheme help reduce the size and massing of the project as stated in the letter to you by McCabe and Co., Inc.?”

She also questions the project’s water usage, as it’s likely to have dishwashers and washing machines along with the kitchens, claiming that there is not adequate water storage for flow to fire hydrants and should it catch fire there isn’t enough water to put it out.

Another Cayucos resident, Randall Flamm, supported the project. “There have been no new motels or hotels built in the Cayucos area in the last decade. Tourism has increased substantially in that amount of time. During the summer and holidays, it is almost impossible for our family and friends to get a room in Cayucos. This project will allow more visitors to stay and enjoy the coastal access, which is directly across the highway from this project. It will fulfill a dire need for families wanting to enjoy the California Coast.”

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