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Developer wants to build a food court from shipping containers in downtown SLO

Food vendors would operate out of repurposed shipping containers at a new outdoor dining hub proposed for downtown San Luis Obispo.
Food vendors would operate out of repurposed shipping containers at a new outdoor dining hub proposed for downtown San Luis Obispo.

A unique development proposal in downtown San Luis Obispo would turn an old car lot into an outdoor food court featuring repurposed shipping containers.

The concept, reviewed Monday by the city’s Architectural Review Commission, is proposed for 1166 Higuera St. at the corner of Higuera and Toro streets, across from Petra restaurant on the same block as Bank of America.

The existing site consists of a parking lot with a two-story commercial building that formerly housed the Apothecary Tattoo parlor and years ago was the site of a car dealership.

Project applicant Paul Tompkins, chief operating officer of NKT Commercial, said the idea is to help new businesses flourish and offer a family- and pet-friendly spot for outdoor dining.

“The business spaces will be smaller sizes and more affordable for some of the restaurateurs,” Tompkins said. “This project can serve as an incubator for small businesses.”

The proposal calls for 12 repurposed shipping containers totaling 2,720 square feet.

The containers would provide space for seven tenant suites, three storage rooms, one long-term bike storage locker and restrooms.

The proposal also would demolish a two-story building on site and replace it with a 4,208-square-foot single-story restaurant space.

Tompkins added that the project would allow for temporary use of the modular spaces.

“The modular nature makes it flexible,” Tompkins said. “So, if the community really adopts it and the city requests that we put more density, it’s something we can do.”

Tompkins said the new hub would offer a range of food and drink services that complement each other.

“We don’t have any tenants locked in at the moment, but the types of businesses could be a taqueria, a deli, a salad shop, acai or poke bowl shops, or whatever else may come,” Tompkins said. “We expect to have beer, cider and wine tasting.”

The complex would not allow hard alcohol to cater to a family atmosphere, Tompkins said.

Leasing would involve a base price with a percentage of sales, with more affordable rent options than are available in many downtown commercial building spaces, Tompkins said.

An image of the existing property space at 1166 Higuera St. in San Luis Obispo, where a commercial development project featuring outdoor dining is proposed.
An image of the existing property space at 1166 Higuera St. in San Luis Obispo, where a commercial development project featuring outdoor dining is proposed. Nick Wilson nwilson@thetribunenews.com

A new concept

Tompkins said he’s aware of North County businesses (The Backyard on Thirteenth in Paso Robles and Ancient Owl in Atascadero) where brewers have repurposed shipping containers.

“I think the container concept is a nice aesthetic,” Tompkins said. “It’s environmentally friendly, which is always a plus.”

The city has reviewed several projects that propose using repurposed shipping containers, but none have been built yet, said associate planner Kyle Bell.

“The most recent active proposal is for a property at 1030 Orcutt Road that was approved by the ARC for a three-story residential dwelling,” Bell said.

The Funk Zone in Santa Barbara — featuring boutique tasting rooms, cafes and more — is similar in concept to the new SLO proposal.

“If you’re been to the Funk Zone in Santa Barbara, we’re not trying to create that in one small parcel,” Tompkins said. “But this is similar in that we’re trying to give amenities and benefits like those that the Funk Zone provides for the working, young professional, and to try to provide as much of that as we can on one parcel in SLO.”

The project, which has no title yet of the likes of SLO Public Market or Duncan Alley (both new marketplace developments in SLO), is designed with vertical trellises for growing vines and landscaped outdoor seating areas.

Food vendors would operate out of repurposed shipping containers at a new outdoor dining hub proposed for downtown San Luis Obispo.
Food vendors would operate out of repurposed shipping containers at a new outdoor dining hub proposed for downtown San Luis Obispo. Courtesy rendering

The building space would cover 19.5% of the roughly 21,600-square-foot lot, with containers positioned around the borders of the site.

The tenant spaces would either be 8-by-20 feet (for beverage providers) or 8-by-40 feet suites (for food service), Tompkins said.

Customers would order outside and the containers would be employee-only, Tompkins said.

The proposal designates 16 parking spaces — down from the original 40 proposed — and 28 bike parking spaces.

Tompkins said the property owner would have use of adjacent parking lots after 5 p.m. and on weekends, offering more than 60 total spaces during those times.

The hours of operation are expected to be from 6 a.m. to 11 p.m.

Planning review

The project proposal still must make its way through the planning process, including review by the Planning Commission, which will consider the proposal for a final action, Bell said.

City Council review would not be required unless the project is appealed, Bell said.

There’s no anticipated construction date at this time.

A proposed parking reduction plan that would cut the number of spaces by 60%, from 40 to 16, “will be evaluated by the Planning Commission in conjunction with a Trip Management and Reduction Plan, and a Parking Demand Study,” a city staff report noted.

A trip reduction plan could include employee carpools, vanpools, public transit, buspools, commuter shuttle, bicycling and other options. The bike parking accommodations are also factored into the parking reduction request.

Bell said the Planning Commission will need “to identify whether there is sufficient justification for the parking reduction request or not.”

A proposal calls for developing this property at 1166 Higuera St. in San Luis Obispo into a downtown dining hub using shipping containers.
A proposal calls for developing this property at 1166 Higuera St. in San Luis Obispo into a downtown dining hub using shipping containers. Nick Wilson nwilson@thetribunenews.com

Community input

The ARC received four letters from the community on the project as part of the ARC agenda correspondence.

“In my ideal world, this property would see a mixed-use development with several floors of housing above it,” wrote Rachel Mann. “But that’s much more expensive. The clever repurposing of shipping containers for this design reduces costs but still creates an inviting space to enjoy our downtown.”

Chuck Crotser, a SLO architect, wrote that he’d like to see much more “robust development,” despite the clever design and a seemingly “pleasant social space.”

“Although I find this project attractive, it doesn’t seem to represent the highest and best use of this particular important downtown property,” Crotser said.

Allan Cooper, of the group Save Our Downtown, wrote that the Downtown Concept Plan recommends a two-story minimum development with housing on the upper levels on this block, though open space is also referenced in the plan which the project incorporates.

The Downtown Concept Plan is not a regulatory document but has been referred to over the years as guidance for development projects and for public improvements downtown.

“We are not entirely opposed to the use of shipping containers as they can be used at higher density and in innovative ways,” Cooper said. “But with the exception of providing public open space, this project fails in terms of meeting the minimum two-story requirement for development and fails in terms of including housing at the upper levels.”

A fourth commenter, Kevin Buchanan, who didn’t identify his community of residence, supports the project design, as well as a 60% parking reduction.

“I would be in support of removing all parking requirements from this project,” Buchanan said. “Please prioritize building space and places for people in the cities, over mandating more spaces for cars.”

This story was originally published February 1, 2022 at 5:00 AM.

Nick Wilson
The Tribune
Nick Wilson is a Tribune contributor in sports. He is a graduate of UC Santa Barbara and UC Berkeley and is originally from Ojai.
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