The Nipomo Incorporation Committee (NICE) held a vision conference on Saturday February 12, 2011 at the Blacklake Golf Resort Clubhouse.   Approximately 45 people attended from various groups representing a cross section of the Nipomo Community.

Media including KSBY and the Adobe Press covered the event.  You can view the KSBY video clip here.  The Adobe Press published their article this morning and had a good re-cap of the morning’s events:

A broad spectrum of Nipomo residents, business owners and community group leaders attended a recent meeting to share their visions of what they would like to see if the town becomes a city.

Approximately 45 people representing some 25 organizations attended last Saturday’s incorporation workshop facilitated by the Nipomo Incorporation Committee for Education (N.I.C.E.) and Chamber of Commerce.

You can view several photographs of the event here. The individuals attending came up with several goals, which were written on large sheets, which you can see here.

The top goals as the Adobe Press reported were narrowed to:

The groups then came together and developed a list of the top five goals for Nipomo’s future, which included developing a more diverse and expanded tax base, and putting a greater emphasis on the community’s schools as well as youth and senior programs.

The group also listed developing hotels and/or a convention center in the community and giving Nipomo an identity as top goals, Murray said.

Also attending were various government leaders, including County and local NCSD elected officials.  Thanks to everyone to participated and assisted in the program, including NICE Steering Committee Members and Bill Morrow and Bob McGill who acted as facilitators for the event.

If you’re on Facebook, come visit and “Like” us on our NICE Facebook Page.

On Saturday, February 12, 2011 from 8:30 a.m. to 12:00 noon at the Blacklake Club House we will hold a workshop that is different from our previous ones.  There are approximately 30 to 40 different organizations in Nipomo, including churches, service organizations, youth activities, adult recreation interests, schools, non-profits, etc.   As a result of this diversity of interests, there are undoubtedly a variety of opinions on what is important in Nipomo.  We hope to create a forum where these various groups can come together and get to know each other and discover what issues unite us a community.   The expected result is two-fold:  to open up better communication between the leaders throughout our community, people who may not interact regularly.  And,  to develop a common vision and unified plan for making Nipomo the community in which we all want to live and be involved.  Only by working together can the citizens of Nipomo have a real voice in what our future community will look like.

If you are interested in taking part in the work shop or observing the process, please feel free to come by the Blacklake Golf Resort Clubhouse.  You can also email Mike Eisner at mike@nipomoincorporation.org

Questionnaire Results (25% response)

March 1, 2009

1. Please rank the following, in order of priority, as to reasons for Incorporation;

1. Self Rule 46.15%

2. Growth 28.20%

3. Local representation

4. Water decisions

5. Better use of tax dollars

6. Permitting

Others

Infrastructure

Keep private property private

Concerns over future water rights

Ability to establish priorities for the Nipomo area (broader than self rule)

Land use planning power

2. Please rank the following, in order of importance, as the important issues facing Nipomo today;

1. Water 45.00%

2. Traffic 22.50%

3. Growth

4. Roads

5. Density

6. Schools

7. Parks

Others

Don’t waste funds fixing a state and federal problem

Planned growth with proper infrastructure (roads)

Using zoning correctly without GPA

3. What questions do you have about the possible incorporation of Nipomo?

A. How will the cost to incorporate be covered? 

Through fundraising and donations. We have a fundraising committee that will begin to work on the $200,000.00 necessary to place the subject before LAFCO.

B. When will the incorporation process be able to begin? Our original estimate was that we would be able to place the question on the ballot in the year 2012.

 Our original estimate was that the community would be able to vote on the subject of incorporation in the year 2012, however due to the current economy we are not sure of the date. When the finance committee determines that the community is generating enough sales tax, property tax and other funds to support a city we will explore the ballot option.

C. Where is the money to incorporate? 

See A

D. Exactly how much tax revenue goes to the County and exactly how much is spent on Nipomo? 

Unknown at this time

E. How can we be assured that incorporation will offer us a better quality of service and greater efficiencies in government including accountability while not increasing taxes?

 On the question of raising taxes, the new city government cannot raise taxes without a vote of the people. This is law. As to the second part of the question, you will be represented by 5 people elected from the city and not just one person sitting on the Board of Supervisors. Lastly, local control will be able to address problems in a timelier manner.

F. How can we design incorporation to offer us more than just another layer of government and potentially less skilled, ego-driven politicians? 

Get involved and have a say in how Nipomo should be run. We need a council of hard working and dedicated individuals to run our community. They are currently in our community and will serve if asked.

G. How do we assure ourselves that if incorporation happens that the skills of those elected and/or hired are of equal or better quality than at the County level? 

Get involved in the process and make your voice heard. We currently have people serving the community through SCAC and NCSD. Attend their meetings and observe their commitment, knowledge and willingness to serve. This is where the new council will come from as elected (not appointed) by the community.

H. If incorporated, will the tax base be sufficient to cover roads? 

Yes

I. How do the current powers and finances of the county and local water transfer to the new city?

 The PUC controlled water purveyors will stay the same and NCSD may or may not become part of the City government. These are discussions that will occur with LAFCO.

J. How can the new community pay for the deteriorating infrastructure without raising taxes? 

The funds currently going to the County generated in Nipomo would transfer to the City of Nipomo

K. When will the community be able to see the cost of local government versus the rate of commercial and property tax growth? 

We have a finance committee that is currently analyzing this information and will have a preliminary report at our fall meeting

L. How do we prevent the new city from being run by the historic land owners and developers? We could leap from the pan into the fire regarding development. 

Through the election of the City council

M. How much commercial development will it take to become financially viable for incorporation? 

Unknown at this time but the committee is working on this matter

N. Can Nipomo afford all the necessary services required at our current population and business levels without increasing property, sales and local taxes? 

These are being analyzed by the finance committee, but remember that taxes cannot be raised without the approval of the voters.

O. What industry/business/ other sources of revenue will provide enough of a tax base to support self governance?

 See M

P. Where can we get information that shows the economic arguments in favor of becoming a city?

 By becoming a part of N.I.C.E and attending the information gatherings

Q. What is the proposed area of incorporation and will the County target that boundary for growth according to the smart growth principles and the framework for planning?

 Our proposed area of incorporation follows the 93444 zip code. See the web site for a map of the area. The final decision on the boundaries will be determined by LAFCO. As to growth, without control of the City through incorporation, the County will continue to use Nipomo as an area to place development that other communities resist.

4. Please rank the services, in order of importance, which you feel are less than adequate in Nipomo;

1. Road maintenance 33.33%

2. Health care facilities 22.50%

3. Community Center

4. Senior support

5. Parks

Other

Commercial Development tax base

Hotels/motels

Cemetery

Water & sewer

NCSD management and transparency

Would like more cohesiveness in the community

More shopping, i.e. Grocery stores

Better communication with the press

Better highway interface construction

Police/fire and related services

Population control

Water use

5. Do you feel that the County is spending an adequate amount of tax dollars, collected from Nipomo residents, in Nipomo?

Yes   3 No 33

6. How long have you lived in Nipomo? 

0-5 years 34.21%

6-10 years 42.11%

11-15 years  5.26%

Over 16 years 18.42%

7. On a scale of 1 to 10 (1 low and 10 high), please rate the following:

Is incorporation good for Nipomo? 8

Does Nipomo need more commercial growth? 6

Is the idea of “rural” good for Nipomo? 7 

8. Groups where a presentation on incorporation would be valuable;

Newcomers

9. What subject would be of interest to you at a “Community Gathering” in the future?

A. Projected cross over regarding revenue neutrality

B. “What is Nipomo” Gather all significant community groups together and give them 10 minutes to describe what their mission is in the community. NICE could moderate and see what consensus is achieved in the vision of Nipomo.

C. Meetings on time and expense to incorporate.

D. How can Nipomo bring in more jobs? What kinds of jobs are best for Nipomo?

E. Roundtable discussions on Incorporation.

F. What can the general public do to assist in this massive project?

G. Freeway issues and water issues

H. Green projects for the community and their value with regards to future employment in Nipomo.

I. Clear condensed idea of actual costs per capita to incorporate and costs after incorporation.

J. Growth, infrastructure, services and the financial health of Nipomo after incorporation.

K. Fiscal analysis of Incorporation and continued updating of the community on this subject.

L. Financial projections of Nipomo in view of the current economy.

M. Is incorporation going to maintain rural or create a city? Is zoning going to be less than Residential Suburban?

An adequate water supply and completion of the Willow Road interchange to support commercial growth in five areas will be key to cityhood for Nipomo, county officials told residents Saturday.

If the community does become a city, it would have to find a way to make up a roughly $300,000 shortfall the county currently experiences in a variety of costs, such as maintaining streets and parks, officials said.

But when Nipomo could feasibly become a city is in question under the current economic situation — probably not by the previous target of 2012 — and the proposal could be blocked at a number of steps along the way, officials said.

Those were just a few of the issues discussed Saturday morning at an informational meeting presented by the Nipomo Incorporation Committee for Education (NICE) in the Monarch Club at Trilogy Central Coast in the Woodlands development.

About 75 residents turned out to hear representatives of the county Planning and Building, Public Works and Parks departments and the Local Agency Formation Commission discuss incorporation from their points of view.

NICE has been holding such meetings periodically to educate the community about the potential for cityhood, because if all other hurdles are cleared, incorporation ultimately will come down to a public vote.

Fourth District Supervisor Katcho Achadjian said he supports incorporation because it would be the community’s decision and NICE is doing a good job of educating the public.

“The time has come (for a decision). The community has matured,” Achadjian said, noting Nipomo has already set its own growth rate cap and developed its own transfer of development credits program separate from the rest of the county.

Chuck Stevenson, manager of the Planning and Building Department’s Long Range Planning Division, said the biggest obstacles will be infrastructure, water, a limited economic base, the cost of municipal services and workforce housing.

“Businesses looking to locate to a place are looking for homes that are affordable to their workforce,” he said, and the sales taxes generated by businesses are what will make cityhood viable.

Stevenson said five areas are targeted for commercial development. Those include Olde Towne, which is largely undeveloped, and Crystal Oaks, also known as the Canada property, west of Highway 101 and north of Sandydale Drive.

The others are the south side of Southland Street; South Oakglen Avenue south of the Dana Adobe, where another freeway interchange is proposed; and the so-called Downtown Core on West Tefft Street west of the freeway.

“Willow Road (interchange with Highway 101) is critical to incorporation,” he said, because it’s needed to handle the traffic generated by new businesses, particularly the Canada property through which the Willow Road extension will pass.

But securing adequate water, workforce housing, roadways and the commercial development to generate enough sales taxes is just the start of a complex process.

Paul Hood, executive officer of LAFCO, said the agency is generally in favor of Nipomo incorporating, but it must be financially feasible.

Once city boundaries are developed, proponents must issue a notice of intent to circulate petitions, gather signatures from 25 percent of property owners and submit an application to LAFCO with a $15,000 deposit.

That fee is just the start of what could become a $200,000 process with a full environmental impact report.

A comprehensive fiscal analysis would be conducted to be sure the county would save as much on services as it would lose in revenue, which Hood said is “one of the most important and challenging hurdles.”

Hood would then analyze the city boundaries, services plan, fiscal analysis, environmental determination and terms for transferring assets and employees and would either approve or deny the application.

If it’s approved, LAFCO would hold public hearings that could take several days and a protest hearing, which could kill the plan if 50 percent of the property owners object to incorporation.

If the proposal clears the protest hearing, an election would be scheduled. Even if the plan succeeds in the election, the transition of power still could take a couple of years.

“Then the keys are handed over to the city manager and city council, and the county says, ‘See ya. Good luck,’” Hood said.

Despite the daunting task ahead, Achadjian urged NICE and the community to persevere.

“Put together the pros and cons and decide if independence is worth the cost,” he said. “There’s a lot of challenges ahead of you, a lot of education. … Don’t lose hope, don’t lose momentum. Keep the faith and move forward together.”

NICE appreicates the Santa Maria Times for attending and actually covering this community event.  NICE, as is its custom and practice invites all the local media to their community wide meetings.

The Nipomo Incorporation Committee for Education (NICE) held its most recent community meeting on Saturday, 03/28/09 at the Woodlands Trilogy, Avila Room from 9:00 a.m. to 12:00 noon.  Over 100, (103 was the official count) local Nipomo residents, joined several governmental leaders and community leaders at the meeting.    Katcho Achadjian, 4th District Supervison, San Luis Obispo County attended, as did officials from the Nipomo Community Services District, Chamber of Commerce, and others.  Katcho moderated the morning’s discussion, which included the following presentations.  

9:06 a.m. Frank Smith, Triology, Shea Homes.  Frank gave a brief overview of the current focus of the Woodlands community.  Despite a downturn in the economy, in 2008, Shea Homes closed and sold 83 homes out of their 87 home goal.  This year in 2009, they have sold five homes each month, from January through March.   The Woodlands community continues its growth.    NICE thanks The Monarch Club of Trilogy at The Woodlands for the generous donation of the Avila Room for the meeting location, including light refreshments.

9:12 a.m.  Mike Eisner, NICE, President gave an overview of the recent NICE Survey on Incorporation.

NICE powerpoint presentation here. (Click on slideshow icon at top right to view images)

9:19 a.m. Katcho, Moderator.  Katcho pointed out that any eventual Nipomo incorporation decision will be one made by Nipomo residents, not the county, not the surrounding communities–but Nipomo residents alone.  Katcho felt that NICE has, over the last years delivered what it has promised to the community:  education.  NICE has brought in representatives from the San Luis Obispo County Sheriff’s Deparment, CDF , San Luis Ambulance, Local Developers, and County Government.  Katcho also pointed out that NICE is a non-profit organization completely comprised of local volunteer efforts of Nipomo residents.

9:29 a.m. Chuck Stevenson, San Luis Obispo County Planning Department.  

Chuck also presented a powerpoint presentation, which you can view here (Click on slideshow icon at top right to view images).  Some of the highlights included the following:

2008 population estimates show Nipomo at approximately 14,547 residents, reflecting a 13% increase since 2000.  Buildout projections of 2030 estimate Nipomo’s population to be approximately 21,539.  If the surrounding rural areas are included (historic Nipomo) the population increases to approximately 35,072.

Some incorporation obstacles include infrastructure, water, tax base, affordable work housing, and costs of government.   Nipomo’s infrastructure needs include longtime reliable water source, and various street and highway needs, including Willow Road interchange and Tefft Street freeway improvements.

The powerpoint presentation outlined several opportuinty areas for economic growth.  In the next five years, Nipomo will need water supply and highway interchange improvements.  Commerical growth will likely be modest and slower.  There will be continued residential growth.  And, there will likely be an general plan update for the Nipomo area within five years.

9:58 a.m. Dave Flynn, San Luis Obispo County Department of Public Works

Dave’s powerpoint presentation can be seen here.  (Click on slideshow icon at top right to view images).

Some highlights include a fascinating inventory of existing Nipomo infrastructure:

94 Lane Miles of Streets

160 Culverts

125 Street Lights

42 Drainage Basins

32 miles of Sidewalk

6 Traffic Signals

2 Bridges

2  Transit buses

In terms of Nipomo’s 94 miles of streets, we actually rank in the top tier of the county in road conditions; however, all communities are sliding downward in road conditions because of the lack of funding.  From 2006 to 2008, the following roads were paved in the Nipomo community:  Southland, Division, Orchard, Pomeroy, Las Flores, and Thompson.  

Current revenues relating to Nipomo infrastructure total approximately $1,025, 000, while expenditures slightly exceed revenues at approximately $1,310,000.  To make up this shortfall, the County must dip into the general fund.  

Proposed Tefft Street improvements in four phases over the next eight years will total almost $10,000.00, which will include additional off ramp lanes, and relocating the southbound on ramp.  

10:48 a.m. Pete Jenny, County Parks and Recreation:

Pete did not prepare a powerpoint presentation; however, he pointed out that there are approximately 154 acres of community parks.  In Nipomo, we fare far better than most other areas of the county.  Nipomo enjoys approxmimately 10.5 acres per 1000 residents.  The county average is only two acres per 1000 residents.  

The county strives to have at least one park within 1/2 mile of a residence, which is not always possible.  Pete pointed out that several community services district in the county are now assuming park powers, including here in Nipomo–even though limited at the present time.  

Pete also pointed out that much is accomplished throughout the county by unique partner relationships.  For example, the county partnerned with the Lucia Mar School District to provide soccer fields at Nipomo High School.  Such creative partnerships make many projects possible.

Pete outlined some of Nipomo’s recreational needs for the future:  A needs assessment is a big undertaking; howevever, Nipomo needs to know where to start and plan for its recreational future.  Pete suggested:

1.  Protection of Nipomo’s open space habitat;

2.  More community parks;

3.  Recreation programs.  

4.  The NCSD’s assumption of park powers can help implement these goals.

11:20 a.m.  Paul Hood LAFCO

Paul’s powerpoint presentation outlined some of the basic steps toward incorporation.  You can see Paul’s powerpoint here, directly from the SLOLAFCO website.  Paul’s presentation included a background of LAFCO, why communities choose to become cities, and process followed to become a city, including the petition process, administrative process, fiscal analysis and eventual election.  It’s a very informative presentation and gives a very good overview of how a city, specifically, how Nipomo would go through the legal requirements to become a city.  I encourage you to review the powerpoint.

Overall, the County Staff did an excellent job of presenting the information to the community.  The community benefited, and it was truly an educational meeting.    NICE plans to hold another community meeting next September.  To become more involved please leave a comment with your email address, if we do not already have that information.  Thanks to all who participated.

Date 03/28/09

Time:  9:00 a.m to 12:00

Location:  Avila Room in the Monarch Club of Triology at The Woodlands

The program, moderated by Katcho will include:

Q & A with San Luis Obispo County Staff who are instrumental in determining Nipomo’s character.  Some of the questions to be addressed include:

Chuck Stevenson–Planning:

What is the future of Old Town?

What Specific Plans are moving through the county?

Dave Flynn–Public Works:

What are the current plans for the Tefft Street Interchange?

What additional roads are planned to relieve congestion at Pomeroy?

Pete Jenny–Parks and Recreation:

Would the community park stay with the county or transfer to the new city if Nipomo incorporated?

Paul Hood–LAFCO:

What is the incorporation process for Nipomo, i.e., time lines, costs?

Bring your questions for the panel.  Be a part of your community’s future.

NICE extends its appreciation to the Trilogy Resort Living for their support of this important community event.

Noting some 200 Nipomo residents attended,  (closer to 263, based on NICE counts during the conference) this was an incredible turnout to hear about Nipomo’s development future:

If developers build all the projects described Saturday at an informational meeting, Nipomo would have or be close to having enough tax revenue to become San Luis Obispo County’s eighth city and the largest in the South County.

An estimated 200 Nipomo area residents — about double the number anticipated — turned out to hear about nine projects at a meeting sponsored by the Nipomo Incorporation Committee for Education (NICE) in the Monarch Club at Trilogy Central Coast.

None of the developers could estimate the tax revenues that their projects might generate.

True, no one can precisely estimate the amount of potential tax revenues the projects might bring; however, the trend in sales tax revenue in Nipomo has been trending upward over the last several years.  Mike asked me whether I thought if all these projects came to fruition that might result in enough revenue for Nipomo’s Incorporation:

But Guy Murray, vice president of NICE, said if all were fully built,
they could generate enough, combined with other revenues, to allow a
city to pay for all the services it would have to provide.

“It would certainly close the gap (in required tax revenue), if not get us
very close,” Murray said, adding the proposed hotels would provide a
major boost through transient occupancy taxes, which would all go to
the city.

Again, we would have to calculate all the sales tax and transient occupancy tax generated by the projects.  This would be accomplished through a comprehensive fiscal analysis overseen by LAFCO during the actual incorporation process:

Exactly how much revenue would have to be generated through sales and
transient occupancy taxes won’t be known until an incorporation
application is made to the Local Agency Formation Commission, he said.

Then a $200,000 feasibility study would have to be conducted which,
essentially, would lay out the proposed city’s budget for the first
five years.

“The trick is to be as close to the line (for funding city services) as you can be,” Murray said. Too far over and the community would become a “cash cow” for the county, which would
require huge payments from the city to neutralize the county’s loss of
tax revenues.

Right now, Nipomo is in the red in terms of budget shortfall; however, that is actually the better position to be in rather than having so much surplus that the new city would be saddled with years of revenue neutrality payments to the county.

The rest of the story noted the previous NCSD preliminary feasibility study, as well as Nipomo’s projected population will be approximately 20,000 by 2012 making Nipomo the largest south county community, and if incorporated, the largest south county city:

When Nipomo Community Services District conducted a preliminary feasibility study in 2003, it indicated a city would need a $6 million budget and would operate at a 2 percent deficit that could be eliminated in four years.

In addition to sales and transient occupancy taxes, revenue would come from property taxes and other state and local taxes, licenses and fees.

NICE President Mike Eisner said originally it was estimated Nipomo could become a city in 2012, when the community’s population is projected to hit 20,000.

That would make it the South County’s fourth and largest city in terms of population, but given the current state of the economy, Nipomo can’t become a city that soon, he said.

Most of the developers said the dates for launching their projects depends upon when the economy improves and financing becomes available, although a few did have projected start dates next year.

At least one is virtually complete, with the first retail store to open next month.

But without the developments, Nipomo will remain shy of the revenues needed for cityhood.

Developers and the projects they outlined were George Newman of Nipomo Town Square, Dave Watson of King Ventures’ project on South Frontage Road, Greg Nester of the Trading Post and the Villagio Deli, Jim La Loggia and John Scardino of the Woodlands Marketplace, Rob Rossi of Blacklake and Terry Flatley of Flatley Homes’ project on West Tefft Street.

Two developers — Rob Marinai of Nipomo Commons and Tai Martin of the Longs Drugs project — could not attend, so Eisner provided brief outlines of those projects.

In a related story in the Santa Maria Times Mike briefly outlined the nine projects discussed at the Nipomo Development Conference:

Nine projects on horizon for Nipomo

By Mike Hodgson/Associated Editor

Here’s a brief look at the nine projects described by developers at the Nipomo Incorporation Committee for Education meeting held Saturday:

Nipomo Town Square, Mary Avenue and Juniper Street —19 acres, retail stores, professional offices, wide variety of medical services, assisted living facility with dementia support, ambulance; potential tenants include hardware store, health food/grocery store, two restaurants; groundbreaking mid- to late 2009, full buildout in 30 months.

King Ventures, South Frontage Road between Hill and Mary streets — 10 acres, 60 residential units, 35,000 square feet of retail space, 25,000 square feet of office space, 15,000 square feet of restaurant space; includes realignment of South Frontage Road to accommodate proposed southbound Highway 101 onramp in cooperation with adjacent Nipomo Commons; uncertain start date.

Nipomo Commons, South Frontage Road, north of Hill Street (former Nipomo Recreation Center site) — 5-plus acres, 38,000 square feet of commercial, 17,000 square feet of office space, 51 residential units; adjacent 72- to 83-room hotel; uncertain start date.

Flatley Homes, 691 W. Tefft St. (across from Nipomo Post Office) — 4 acres, four commercial buildings with 32,000 square feet of office space, 20 mixed-use buildings with garages and offices on first floor, two to three residential units on second and third floors; infrastructure under construction, with completion in four months; uncertain start date for remainder.

Woodlands Marketplace, center of the Woodlands project — Total of 140,000 square feet of retail and office space; 36,000 square feet of office and retail, sheriff’s department field office, 20 apartments on second floor; three separate buildings for offices, restaurants, markets or medical facilities; hotel with 200 to 200 rooms (500 permitted); 19-acre business park for light manufacturing and distribution; 3-acre park, 19-acre butterfly habitat, golf course; first phase to start in 2009.

Blacklake, from Willow Road to site of current Blacklake Golf Resort clubhouse — 1,800-square-foot three-bedroom golf bungalows, 60-room hotel, three stories above ground, one below; new entrance, reconfiguration of golf course front nine, state-of-the-art irrigation system to reduce water use; possible groundbreaking in 2011.

Villagio Deli, corner of Pomeroy Road and realigned Willow Road — 5,000-square-foot convenience store and restaurant-quality delicatessen, wine tasting of local wines, event room, outdoor eating area; golf-cart/handicapped-accessible path from Blacklake community; unannounced start date.

Trading Post, Thompson Road near Tefft Street — Seven buildings, two-story restaurant with clock tower, 400- to 3,600-square-foot single-story retail stores, three residential condominiums on south side of creek tributary, connected by footbridge; unannounced start date.

Longs Drugs extension, Mary Avenue at West Tefft Street — Retail center with Me-n-Ed’s Pizzeria, UPS Store, Mexican restaurant, vitamins and herbs store, Lemos Feed & Pet Supply, TNT’s Frozen Yogurt, Healthy Inspiration women’s exercise center, Healing Touch day spa, Wells Fargo Bank; three units still not leased; near completion, Lemos to open in October.

September 21, 2008

The front page article in it’s entirety on the front page:

Projects could make Nipomo a city

By Mike Hodgson/Associate Editor

If developers build all the projects described Saturday at an informational meeting, Nipomo would have or be close to having enough tax revenue to become San Luis Obispo County’s eighth city and the largest in the South County.

An estimated 200 Nipomo area residents — about double the number anticipated — turned out to hear about nine projects at a meeting sponsored by the Nipomo Incorporation Committee for Education (NICE) in the Monarch Club at Trilogy Central Coast.

None of the developers could estimate the tax revenues that their projects might generate.

But Guy Murray, vice president of NICE, said if all were fully built, they could generate enough, combined with other revenues, to allow a city to pay for all the services it would have to provide.

“It would certainly close the gap (in required tax revenue), if not get us very close,” Murray said, adding the proposed hotels would provide a major boost through transient occupancy taxes, which would all go to the city.

Exactly how much revenue would have to be generated through sales and transient occupancy taxes won’t be known until an incorporation application is made to the Local Agency Formation Commission, he said.

Then a $200,000 feasibility study would have to be conducted which, essentially, would lay out the proposed city’s budget for the first five years.

“The trick is to be as close to the line (for funding city services) as you can be,” Murray said. Too far over and the community would become a “cash cow” for the county, which would require huge payments from the city to neutralize the county’s loss of tax revenues.

When Nipomo Community Services District conducted a preliminary feasibility study in 2003, it indicated a city would need a $6 million budget and would operate at a 2 percent deficit that could be eliminated in four years.

In addition to sales and transient occupancy taxes, revenue would come from property taxes and other state and local taxes, licenses and fees.

NICE President Mike Eisner said originally it was estimated Nipomo could become a city in 2012, when the community’s population is projected to hit 20,000.

That would make it the South County’s fourth and largest city in terms of population, but given the current state of the economy, Nipomo can’t become a city that soon, he said.

Most of the developers said the dates for launching their projects depends upon when the economy improves and financing becomes available, although a few did have projected start dates next year.

At least one is virtually complete, with the first retail store to open next month.

But without the developments, Nipomo will remain shy of the revenues needed for cityhood.

Developers and the projects they outlined were George Newman of Nipomo Town Square, Dave Watson of King Ventures’ project on South Frontage Road, Greg Nester of the Trading Post and the Villagio Deli, Jim La Loggia and John Scardino of the Woodlands Marketplace, Rob Rossi of Blacklake and Terry Flatley of Flatley Homes’ project on West Tefft Street.

Two developers — Rob Marinai of Nipomo Commons and Tai Martin of the Longs Drugs project — could not attend, so Eisner provided brief outlines of those projects.

(For descriptions of the projects, see related story.)

Jim Tefft also gave a presentation on the Olde Towne Nipomo Association and its efforts to turn the area around Tefft Street and Thompson Road into a pedestrian-friendly tourist attraction.

NICE does not advocate for or against incorporation, Eisner said. Instead, the committee is dedicated to providing residents with as much information as possible about incorporation and “moving the process forward so the citizens can vote” on becoming a city.

Mike Hodgson can be reached at 739-2221 or mhodgson@santamariatimes.com.

September 21, 2008

Thanks to Mike Hodgson for actually attending the conference and following up with his two excellent stories.