Located approximately 2.5 miles south of Downtown San Luis Obispo, the Airport Area consists of 1,500 acres of land adjacent to the San Luis Obispo County Regional Airport bordered by the Margarita Area, South Higuera Street, South Broad Street and Buckley Road.

The 2025 updated The Airport Area Specific Plan (AASP) envisions a mixture of open space, agriculture, business parks, industrial mixed-use, and residential development. The AASP includes reuse and regeneration of the natural and built environment; public, private, and environmental value enhancement; and smart and sustainable growth that benefit the community economically, aesthetically and environmentally, (see appendices). Please visit our Environmental Review Documents page to download the Final Environmental Impact Report (EIR) and other documents for this project.

On June 17, 2025, the City Council adopted an Ordinance (No. 1747) amending the AASP to allow mixed-use development in the Service Commercial (C-S) and Manufacturing (M) zones subject to a Minor or Conditional Use Permit where appropriate and consistent with the Airport Land Use Plan.

The Dalidio/San Luis Marketplace Annexation and Development includes the annexation and partial development of 131 acres of property into the City of San Luis Obispo. The near-term activity would involve the development of a portion of the annexation area with a 635,200-square-foot retail complex (San Luis Marketplace), as well as a 150-room hotel, and establishment of a permanent open space area. Urban infrastructure to support this component would also be included in the near term. Infrastructure requirements include roads, water, wastewater conveyance systems, and stormwater conveyance systems. Long-term plans for the site would include development of approximately 98,000 square feet of business park uses.

Please visit our Environmental Review Documents page to download the Final Environmental Impact Report (EIR) and other documents for this project.

On September 5, 2017, the City Council unanimously adopted the Downtown Concept Plan. The Final Plan Supplement and Illustrative Plan are available for review and download below. 

Downtown Concept Plan Supplement: (Final web-ready, September 2017):

Illustrative Downtown Concept Plan Poster (Final, September 2017):

Download a print-ready version of the Downtown Concept Plan Supplement.

Mission Plaza Concept Plan

On September 5, 2017, the San Luis Obispo City Council provided direction to continue to move forward with Mission Plaza Concept Plan implementation, specifically identifying the replacement of the restroom as a key first step.

Design concept alternatives are available for review below:

Mission Plaza Assessment and Concept Plan Update	Mission Plaza Concept Plan Design Concept Alternatives	Mission Plaza Concept Plan

The Foothill Area is in close proximity to Cal Poly University and reflects the energy and innovation of the student and residential communities in the area. Currently, it is primarily developed as commercial centers that include tourist and neighborhood serving commercial uses.

Easy access to Highway 1, the 101 Freeway and the Downtown Area contribute to the Foothill Area’s potential to continue to develop as a hub of commerce with opportunities for the redevelopment of existing commercial centers for a mix of grocery, banking, restaurants and entertainment.

Higuera Commerce Park Specific Plan

The specific Plan provides for the development of an 80-acre site located on the east side of South Higuera Street between Prado Road and Tank Farm Road. The Higuera Commerce Park Specific Plan prescribes appropriate land use, provisions for streets, drainage and utilities improvements, design and property development standards, and other measures which will insure the orderly and timely implementation of the General Plan. Higuera Commerce Park is divided into two sub-areas. The northern 50 acres is designated service-commercial, to include shops, warehouses, and other processing, storage and distribution establishments. The southern 30 acres is designated as "special industrial" area to include light industry and research.

Historic Railroad District

With over 20,000 rail passengers entering San Luis Obispo annually, gaining an impression of the City through its historic railroad yard, the Railroad District, located near the Downtown area, influences San Luis Obispo’s economy, transportation and urban character. The Railroad District Plan  prioritizes open space and historic preservation, safe pedestrian and bicycle connections, aesthetics and plentiful public parking.

This area is well connected by the Railroad Bike Path and Morro St. Bike Boulevard to Downtown Area and Cal Poly University. Newer, mixed use structures in the area reflect the historically urban and industrial style, housing creative and tech businesses, restaurants and residential spaces.

Significant retail, and tourist amenities as well as an anticipated large development area hallmark this Madonna Area and differentiate it from the Downtown Area immediately to the north. 

Walking paths, pocket parks and trails will connect the neighborhoods planned for the 131-acre parcel within this area to a network of open spaces surrounding the proposed development on Madonna Road. Community goals for this area include compact, mixed use projects that provide workforce housing options and neighborhood commercial uses that support pedestrian and bicycle access.

Proposals have included primarily residential projects with as many as 500 single-family homes, designed to be affordable and an enclave of commercial space capped at about 200,000 square feet, office space and a high-end hotel with room for conference facilities.

The city’s General Plan requires that 50 percent of the Area be preserved as agricultural open space.

Mid Higuera Area

Poised for commercial and residential re-development, the mid- Higuera Area lies immediately adjacent to SLO’s downtown core. Bounded by Marsh Street and Madonna Road, the area contains some of the most opportune sites for innovative mixed‐use and reuse for office, multifamily residential and industrial spaces.

The area includes a new mix of uses which will revitalize the area through innovative flood protection solutions, enhanced land use compatibility, improved vehicle and pedestrian circulation, historical building rehabilitation and architecturally enhanced streets and buildings.

The area will also include public improvements to the bridges and riparian areas near the creek way, circulation and street improvements to widen Higuera Street and improve bicycle and pedestrian access, and additional parking, public transit stops, and City parks.

The Prefumo Creek Commons Project is located at 11980 Los Osos Valley Road (LOVR) and is currently undeveloped and utilized for commercial agriculture. The proposed project would include annexation of approximately 31 acres of agricultural land located at the edge of the City limits of the City of San Luis Obispo and development of 16.7 acres west of Prefumo Creek with a regional shopping center. This proposed regional commercial center would include 188,470 square feet of new retail space with six separate retail buildings along with 838 on-site parking spaces. In order to partially offset development of prime agricultural land, 11.9 acres, the majority of which is east of Prefumo Creek, would be set aside as dedicated to open space. An additional 2.3 acres would be dedicated as right-of-way for the extension of Froom Ranch Way from LOVR to Prefumo Creek and along the project site's LOVR frontage.

Please visit our Environmental Review Documents page to download the Final Environmental Impact Report (EIR) and other documents for this project.

The Margarita Area is located in southern San Luis Obispo and is bounded by South Higuera Street, Broad Street, Tank Farm Road, and the ridge of the South Hills. Primarily envisioned for residential development with another 68 acres slated for business park and live work uses. Proposals for the Margarita area thus far have included mainly single family homes with portions of open space and pedestrian network advancing.

The Margarita Area is ideally suited to accommodate San Luis Obispo’s planned residential growth for the near future as the area provides convenient access for residents to employment, shopping and recreation. Community goals for this area include a up to 809 homes in a wide range of housing types with an emphasis on housing that is affordable to those working in San Luis Obispo.

This web page serves as a repository for all of the information associated with the annexation process including background information, staff reports and public comment. The documents listed below and include detailed information about the annexation areas, such as zoning, allowed uses, development standards, and design guidelines. 

City Council Resolution No. 9615 (2004 Series)

Annexation-Related Information

City Council Resolution No. 9896

Council Agenda Report (5-1-2007)

Planning Commission Agenda Report (3-28-07)

Initial Study and Mitigated Negative Declaration of Environmental Impact

City Council Agenda Report (2-20-07)

Proposed Annexation Boundaries

Answers to Frequently Asked Questions

Margarita Area Specific Plan and Zoning Map

Environmental Information 

Please visit our Environmental Review Documents page to download the Final Environmental Impact Report (EIR), Vesting Tentative Map MND, and other documents for this project.

The Final Environmental Impact Report (EIR) identifies and assesses the anticipated environmental impacts of the City's proposed Airport Area and Margarita Area Specific Plans and related facilities plans, including the Water System Master Plan, Wastewater Master Plan Update, and Storm Drain Master Plan. Response to Comments contains a list of persons, organizations, and public agencies commenting on the draft program EIR; the comments and recommendations received on the draft EIR, and the City's responses to significant environmental issues raised in the review and consultation process.