Schools get into housing business
San Luis Coastal considers building a condo project similar to one in negotiations in Avila Beach
Posted on Sun, Feb. 20, 2005
Jeff Ballinger
The Tribune
A local school district may be venturing further into the housing market -- a move that could generate annual income for itself and create affordable homes for working families.
San Luis Coastal is already finalizing negotiations with developer Jeff Edwards to build about 20 condominiums on a hilltop parcel in Avila Beach, a project announced a year ago. The condos would be designed for people with moderate incomes. Priority would be given to district employees.
Now, district officials are exploring the possibility of something similar with a roughly three-acre parcel that sits on a grassy hillside between the parking lot at San Luis Obispo High School and the Adult School/district office.
The hillside overlooks downtown and has unobstructed views of Cerro San Luis and Bishop Peak to the northwest. The western edge of the parcel borders Johnson Avenue, just south of the intersection with San Luis Drive.
The process is in the preliminary phases and many details are still to be determined by the school board, said Brad Parker, the district's director of Buildings, Grounds and Transportation. He is awaiting soil sample tests to determine what and where structures could be built on the land.
"The first thing to do is ... determine the potential for the property," Parker said. "We've only had preliminary notice to the board that we're looking at this."
He anticipates bringing some information back to the board at a meeting in March.
The board has indicated it doesn't want to sell the land, he said. Selling would provide income for one year to the district's building fund, while developing the land and leasing the structures would pay money over the long term into the General Fund, where it could be spent anywhere it is needed.
With the district budget expected to be impacted by declines in enrollment for the foreseeable future, trustees and administrators have recognized that selling the land outright would not do much for the district.
The Avila Beach property is expected to generate about $117,000 a year for the district, Parker said. That would represent about two-tenths of a percent of its annual budget.
Construction could begin within six months and should be completed sometime next year, he said.
The Johnson Avenue parcel is zoned for public facilities. It is located, however, in an area the city has identified for potential rezoning for residential, Parker said.
If the district were to eventually decide to develop the land, he said, it could take 18 to 24 months to go through the permit process before construction could begin.
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