Should Central Coast drive-in become housing site? Here’s what Planning Commission says

A proposal to set the stage for a housing development at the site of the Hi-Way Drive-In Theater will return to the Santa Maria Planning Commission in the future, the panel decided Wednesday without setting a new date.

Commissioners agreed to postpone a decision on a request from People’s Self-Help Housing for changes to the land use and zoning to allow residential development instead of commercial operations at 3170 Santa Maria Way.

With two commissioners absent, the three in attendance decided to delay a decision after admitting they were wrestling with the issue.

Commissioner Esau Blanco said he recognized the need for housing but also recalled memories of going to a drive-in theater while growing up.

“It’s a very tough decision. I wish we did have a full slate of commissioners to evaluate what I think is a very important decision,” Blanco said.

Commissioner Tom Lopez agreed that the decision should include input from the absent commissioners, Tim Seifert and Maribel Hernandez.

PSHH proposed allowing the site to have 49 houses. The planned development application had not been submitted and would be reviewed as a separate item.

Martin Indvik, a commercial real estate broker with Lee & Associates, read a letter from Hi-Way’s owner, Dian Gran from Cal Gran Properties. Indvik previously confirmed the land was in escrow.

Increased losses led to ending the swap meet held on Sundays at the theater site, and dwindling business meant that the theater, once an economically viable business, operates five days a week now.

A number of factors, including increased competition from a 14-screen theater in Santa Maria, movies released to streaming services and theaters at the same time, and struggles with hiring, retaining and affording employees, all caused the demise of Hi-Way’s business, according to Gran.

“As I have explored the potential of selling my property, there has been no interest in it as a drive-in theater. The only interest and value in my property is for a residential purpose,” the letter stated.

Several people spoke in favor of keeping the drive-in theater as a family entertainment venue, including Fourth District Supervisor Bob Nelson, who said he was skeptical of the owner’s claim that the business wasn’t viable.

“Every community that loses a drive-in ends up regretting it,” Nelson said. “I also represent Lompoc, and I know they do.”

He encouraged the commissioners to consider the long-term use and viability of the drive-in theater as part of the process to update the General Plan.

“It’s underway, and it’s the best opportunity for the community as a whole to express the needs and wants for this area of our city,” Nelson added.

Others spoke in favor of affordable housing.

“Santa Maria desperately needs affordable housing,” Kathy Sharum said. “I’ve seen a lot of housing developments get approved, and a lot of them are not affordable. I also like the fact this is a reuse of land, and we’re not taking further ag land to develop on.”

Some saw both sides of the issue, calling the loss of the theater lamentable but recognizing the housing need.

“There are no villains here,” resident Brian Tetley said.

Chairman Robert Dickerson also said he wanted to see the proposed housing layout, not the concept presented with the land use and zoning changes.

Dickerson said those supporting the drive-in theater should mobilize to save the business and turn it into “a real community gem.”

With reports that the owner was looking to sell the land and housing was likely the new use, a Facebook group formed more than a year ago and grew to 3,400 members. However, the group has had mostly spam posts in recent months.

PSHH Vice President Sheryl Lopez said earlier in the meeting that the nonprofit organization didn’t want to spend hundreds of thousands of dollars and another year to create the subdivision maps.

“Frankly, as a nonprofit, we can’t afford to take that risk. Also, we have an option to buy the property. I don’t know if the sellers would be willing to wait throughout that process,” she said.

When commissioners make a decision on the land use and zoning change request, it will serve as a recommendation forwarded to the Santa Maria City Council to ultimately approve or deny the proposal.