The Pismo Beach City Council has approved the first step toward determining how the city might expand outside its borders in the next 20 years.
But doing so could scale back a proposal to add hundreds of homes, hotel rooms, a golf course and other amenities to about 1,700 acres in Price Canyon.
The council on Tuesday night unanimously approved an agreement between the city and San Luis Obispo County as well as an updated map showing the area in which the city is expected to expand over the next two decades.
The area does not include a 530-acre parcel west of Price Canyon Road called Spanish Springs North Ranch, which would include 44 homes, 40 hotel units and 191 acres of vineyards.
The council decided not to include it because it could take longer than 20 years for development to happen in that area, said Jon Biggs, the city’s community development director. County staff and officials with the Local Agency Formation Commission, which has to approve annexations, were also concerned that the location of the land would create leapfrog development.
The map does include a 250-acre parcel that is not currently in the sphere of influence, the boundary outside city limits in which a city expects to expand. Called Godfrey Ranch, it would include 156 homes, a 9-acre golf course and 20 acres of agricultural land.
The other parcels that make up the Price Canyon proposal are already in the city’s sphere of influence.
The project has concerned Pismo Beach residents, a few of whom spoke during Tuesday night’s meeting.
“I don’t know what we’re really trying to accomplish with this massive expansion in the city,” Pismo resident Richard Foster said.
The agreement approved by the council will serve as a platform when planning development outside city limits, Biggs said. The Board of Supervisors also needs to consider the agreement, which it will likely do in April.
After that, the Local Agency Formation Commission can consider approving an update to the sphere of influence, necessary for the Price Canyon development to move forward with its annexation into the city.
The agreement approved by the council includes the provision that developers must obtain a water supply before an annexation can be completed.
In December, Price Canyon developer John King wrote to the Oceano Community Services District on behalf of himself, Rick Loughead and West Coast Housing Group, asking to negotiate the purchase of 200 acre-feet of water.
So far, Oceano district board members have not acted on that proposal.