2 projects could bring hundreds of new homes to the hills of Morro Bay

A plan to develop two parcels of open hillside land across Highway 1 in Morro Bay could bring hundreds of new homes to the city as part of an effort to boost its housing stock.

The proposals call for rezoning a 55-acre area for both multi-family and single-family housing. It’s located near the interchange at Highway 1 and South Bay Boulevard and the city’s new wastewater treatment plant.

“Morro Bay has not had a significant apartment complex built in 30 years,” community development director Scot Graham said in noting the significance of the plans.

The proposal comes after the City Council last year adopted a statement to “identify the opportunities for additional housing options and/or explore partnerships to support these efforts.”

These two residential projects are now in the early stages of mapping and city approvals.

The owner of the smaller of the two parcels, Seashell Cove, is planning a plan high-density residential community on the 4.5-acre property next to the existing Bayside Care Center. Seashell Cove could be zoned for up to 70 high-density units.

Initial environmental work on the proposal has been completed, and the project was presented to Planning Commission on June 7, 2022, but has not yet been recommended for approval to the City Council.

The adjacent 45-acre Shepard/Martz parcel could be zoned mixed density and yield 600 housing units.

At the end of the most recent discussion in August, the council agreed that staff will work with Shepard/Martz and Seashell to complete environmental work and bring a land use/zoning change to the Planning Commission and City Council in early 2023.

The local Chamber of Commerce has made housing a key issue with not enough units to meet the needs of the big hospitality service workforce in town.

Scout Coffee set to begin remodel

San Luis Obispo-based Scout Coffee is ready to begin remodeling the building that will house its new location in Morro Bay.

Owners Jon and Sara Peterson purchased the vacant Bank of America building in Morro Bay over a year ago and are now ready to move ahead with work on the property, according to Morro Bay community development director Scot Graham.

The couple has filed building plans with the city.

They plan a coffee roasting plant, coffee shop, bakery and a restaurant.

John Lindt is the editor of the news website Sierra2theSea.net.

This story was originally published September 7, 2022 at 11:41 AM.