Atascadero City Council begins zoning update

By Michael Chaldu · Wed Mar 11 2026

City discusses proposed zoning changes for most of mixed-use areas in town

ATASCADERO — During a lengthy (over three and a half hours) regular meeting on Tuesday, March 10, the Atascadero City Council discussed proposed new zoning policies, looking at regulations in three of the city's four mixed-use areas.

The council conducted the meeting with just four members as Mayor Pro Tem Mark Dariz was absent. Because of that, a review of Mixed-Use Area 3 was postponed to the March 24 meeting because the imminent recusal of two councilmembers, along with the absence of Dariz would have left the council without the required three members for a quorum on it.

Mixed-use typically includes a mixture of commercial and residential uses on a single site, whether the residential use is above (vertical mixed-use) or alongside (horizontal mixed-use) the commercial use.

The General Plan Update includes a new placetype called “Mixed-Use.” This designation applies to specific commercial areas to encourage infill and economic development outside of major commercial nodes. Up to four Mixed-Use zoning districts are proposed (see Attachment 2a for the proposed MU zoning map), each with varying characteristics that may warrant differentiation through development standards which can be applied to each district.

Genevieve Sharrow of MIG Consultants made the presentation of the zoning details for the three remaining mixed-use areas: MU-4 (a vertical mixed-use district containing the Del Rio Marketplace and Mission Oaks at Del Rio Road and El Camino Real and retail centers south of Curbaril (Food-4-Less, Smart & Final, and surrounding parcels), MU-2 (horizontal mixed-use on Ramona Road), and MU-1 (Mid-Block; parcels along the east side of El Camino Real on each side of Colony Park and the Sunken Gardens). Atascadero Community Development Director Phil Dunsmore and Planning Manager Kelly Gleason were available for questions from council.

The MU-4, dealing with the area containing new shopping centers, is slated as one with larger parcels and a high-intensity commercial zoning district and limited industrial.

"This right here is the reason people like us run for office," said Mayor Charles Bourbeau, referring to the decisions made during these talks.

Councilmember Susan Funk began the MU-4 discussion, asking about the street trees mandated for area businesses and wondering if it was an alternative option for setbacks from the road, and if it was the city's way to avoid a "concrete jungle." Dunsmore said there were a few reason to have trees, like design, aesthetics, shade and meeting areas for people going outside.

Councilmember Heather Newsom asked about the notification process to business owners if zoning policies were changed in their area. City Attorney David Fleishman said the announcement would go in the local paper and city website, with personal notices for those 300 feet from the affected area.

Newsom, which she would express throughout the meeting, was a proponent of property owners being sufficiently informed of policy and being able to operate their land as they see fit.

"I want to make sure we're not overstepping any bounds, and would be nice to hear their thoughts," she said. "If we make changes, and those non-conforming, do they get grandfathered in."

Dunsmore assured that all property owners would be able run their businesses under the same standards if there was a policy change.

After the MU-4 discussion, the council opened up Public Comment, which has two speakers.

Max Zappas, a local broker and developer, opposed many "arbitrary numbers" and requirements that hamper development.

"Spring Street in Paso had as loose regulations as you could go," he said. "Take off the guardrails and give them as much flexibility as possible. Don't say you have to have commercial at a corner; we need to have residential."

Atascadero resident Geoff Auslin said he mostly agreed with Zappas, and like Zappas believed setbacks weren't needed.

"Setback should be equal, commercials should be zero," he said. "I believe that making customers park behind the building really hurts business, and doesn't make it attractive to those driving by in their cars."

Bourbeau pointed out that setbacks weren't required in the MU-4 region.

Discussion then shifted to the MU-1 region, on El Camino Real, which consisted of two narrow strips of buildings.

Bourbeau wondered how much commercial should be required, saying it's difficult to fill all the available space with commercial.

"We have the 'Amazon effect' in that we’ll never have enough businesses to fill, what other things will we allow," he said. "This is the biggest thing: If we allow residential, then they'll probably all end up being residential [in that area]."

However, Newsom said that the land use of the region should be open.

"We don’t need a commercial requirement on all these," she said. "Let owners decide. We’re already mixed. Some are not in final stage of use, there’s some flexibility. Utilize property the best it can be. If we’re not getting more commercial, don’t zone it commercial."

Finally, the council discussed the MU-2 section along Ramona Road, west of Highway 101. That group of parcels was considered the most rural of the areas discussed.

This area was originally identified as an opportunity zone for development centered on employment and small business uses (Innovation/Flex Zone); however, during the October 28, 2025 City Council meeting, concerns related to adjacency to single-family neighborhoods were expressed and the designation was changed to mixed-use to provide for greater compatibility.

Part of the zone is inhabited by Woods Humane Society, and Newsom expressed concern that a zoning change could make the nonprofit a non-allowable entity.

Bourbeau asked whether they could give anyone objecting to Woods' presence a "they were here first reply," while Funk thought the city could give the animal shelter a special designation to keep it at its location. Funk said they should do the same for any churches in the area.

"We're just trying to make something of a region that's a mish-mash," Funk said.

The City Council will continue it zoning discussion, including the MU-3 section, at its next meeting on Tuesday, March 24, at 6 p.m.