North Morro Bay hillside site could become city land. Here’s why neighbors oppose the idea

The Local Agency Formation Committee of San Luis Obispo County approved a jurisdictional change Thursday related to a hillside strip of land in Morro Bay that could lead to annexation.

The 212-acre area above Panorama Drive in North Morro Bay was approved for city “sphere of influence” designation — a precursor to annexation — but neighbors rallied against the idea, saying it could lead to new development that causes landslides due to unstable ground.

Moving the strip of land into the city’s sphere of influence allows the city to “pursue an annexation when timing necessitates,” a LAFCO staff report states.

Morro Bay officials say future annexation would help preserve the upper tier of the hillside for open space, while potentially allowing development of up to 10 homes on lots on a lower tier of the hillside near Panorama Drive.

“The intent of bringing the lots into the (sphere of influence) and eventually into the city through annexation is to maintain local control over development of the lots and to preserve the slopes above the city in an undeveloped state,” the LAFCO staff report notes.

The property is currently owned by Chevron and zoned for agricultural use in county jurisdiction.

But residents fear that city control would make Chevron more likely to sell the lots to a new owner or owners looking to develop, saying it would be more desirable to build homes there with city services provided.

And any grading could cause the earth there to shift and potentially affect their homes, they say, citing past landslides in the area.

Community members have submitted about 1,000 signatures to LAFCO from people opposing any jurisdictional changes.

“The (jurisdictional) requests have been controversial due to the proposed properties’ high landslide potential rating for hazards,” said Carole Truesdale, who lives on nearby Kodiak Street. “Landslides occur regularly, including this winter. ... The hills traditionally and currently are used for grazing and for providing wildlife with a safe corridor for hunting and traveling.”

LAFCO commissioners cast votes

Member Ed Eby dissented in a 5-1 vote, with one member, Steve Gregory, absent.

Commissioner Lynn Compton said that there was public misunderstanding that an approval of sphere of influence would lead to “rampant development,” which is isn’t true in light of Thursday’s meeting considerations.

“There seems to be some misinformation out there,” Compton said. “That’s what it seems like to me.”

Commissioner Ed Waage described it as a vote that sets forth future possibilities of annexation.

“Farther down the road if we there is an application for annexation, we’d have much more responsibility to look at what kinds of developments are proposed,” Waage said. “There would have to be specific plans and all kinds of additional documentation. And certainly the geological features are huge issues throughout the city’s (environmental impact report) for its General Plan Update.”

Waage said it makes sense to allow a sphere of influence to offer the city more control of the future of the land than the county.

City planning eyes annexation

The city’s recently updated General Plan considered various expansion areas, including the Panorama lots, beyond its current city limits.

A resolution of the city’s sphere of influence application says that each of the five individual Panorama lots would accommodate one single-family residence, for a total of “no more than five homes with the opportunity of adding an accessory dwelling unit on each property per state law,” meaning a maximum of 10 homes could be built there in the future.

“Approval of a (sphere of influence) amendment does not mean the subject area will be in the city’s jurisdiction,” the LAFCO staff report sates. “This would not occur until annexation is considered and approved by LAFCO.”

Morro Bay Community Development Director Scot Graham told The Tribune that a geological survey would need to be conducted before any future development is considered.

Graham said there’s no guarantee building would ever happen there, adding that the city would need to supply some of the services as it stands if building were to happen under county jurisdiction, due to mutual aid agreements.

“Whenever you’re doing development over here, you need to do site-specific geologic analysis to determine what you can and can’t do,” Graham said. “So that’s how it works in the county, and that’s how it works in the city.”

Graham said that as it’s envisioned now, the lower tier of the lots could be developed in the future, roughly beneath the 200-foot elevation line, while the upper area is preserved as “the backdrop of the city.”

Neighbors cite landslide potential

Despite the planning steps that would need to occur, neighbors and others fear what could happen if the area is developed.

The land is unstable and landslides have occurred there in the past, they say.

Mel Honda, a resident of Panorama Drive, recalled a landslide there in winter 1995 that caused the hillside to shift and threatened homes, leaving a hillside “scar” where the earth moved.

The landslide buckled streets in the area and affected some retaining walls.

“There was a lot of rain and the hill moved,” Honda said. “It happened on a huge scale. Our house moved with the soil. it damaged water and sewer lines, and retaining walls on people’s properties.”

Honda said any grading or movement of the soil with planned development could contribute to problems.

Honda said he doesn’t believe it makes sense for the city to take on the site.

“Once that happens, the city has to supply the property over there with all the utilities, which makes it even more attractive for development,” Honda said.

Truesdale said that whenever rain comes, “water cascades down with a lot of dirt.”

“Why would a city want to bring in a land that has potential to desecrate the properties that are around there?” Truesdale asked.

Tina Metzger, another Morro Bay resident who doesn’t live near the site, said that the proposal has her worried as well.

“I’m concerned for the residents there, and I don’t live in that neighborhood,” Metzger said. “This is a site that should be left alone.”