Hotel, housing project in Arroyo Grande heads to planners

Correction: A previous version of this story incorrectly listed the ownership of the residential parcel. The second parcel is owned by Mangano Homes Inc. and the San Luis Obispo County Community Foundation.

A proposed mixed-use development that would bring a 100-room hotel, residential housing and a Japanese cultural center to the southeastern edge of Arroyo Grande will go before the city Planning Commission on Tuesday.

The proposal would bring together three separately owned parcels, totaling about 15.3 acres, and create a unified commercial and residential hub at East Cherry Avenue and Traffic Way.

On the first parcel, SRK Hotels is proposing a three-story, 46,800-square-foot hotel with 90 to 100 rooms. It also has proposed a 4,000-square-foot standalone restaurant on the street-facing corner of the 2.16-acre site.

The second parcel is the largest at 11.62 acres, where about 58 single-family homes and a neighborhood park are proposed. The land is owned by the San Luis Obispo County Community Foundation and Mangano Homes Inc.

The third and final parcel is owned by the Arroyo Grande Valley Japanese Welfare Association, which is proposing a community center, 10-unit senior housing, bed-and-breakfast guesthouse, farm stand, historic orchard and Japanese cultural gardens with walking paths.

The latter portion of the project would pay homage to the large number of Japanese settlers who played an important role in Arroyo Grande’s early development, as well as replace the former schoolhouse and community center that stood on the site for more than 80 years before it burned down in 2011 as a result of arson.

Opponents of the Cherry Avenue plan have said there isn’t a sufficient water supply for the development, that it would increase traffic and accidents in a neighborhood already marked by numerous collisions and that the proposed hotel and restaurant are too large for the area.

If approved Tuesday by planners, the development will go before the City Council for final approval.

This story was originally published September 17, 2016 at 1:22 PM with the headline "Hotel, housing project in Arroyo Grande heads to planners."