You might want to send your reporter up to the Coastal Commission offices to get the specifics on the conditions of approval for the Los Osos sewer project.
If memory serves me right, there were two major conditions placed on the permit when it was approved.
The first had to do with the formation and funding of a habit conservation district. A second one had to do with finding and securing enough water for the community buildout. And both conditions were required to be met before any new building (both commercial and residential) would be allowed.
Some time has passed since these conditions were placed, and they may have been modified or changed, but nothing has been reported if they were. So, Im guessing theyre still in place.
The issues on the prohibition zone will be moot once the treatment plant is built and everyone hooks up. But the approval to build anything rests with the Coastal Commission, and I doubt it will allow any building if those conditions arent met.