City Council approves bonds for public safety projects

By Michael Chaldu · Thu Sep 25 2025

Council also OKs subsidy for developer to start on Centennial Plaza project

ATASCADERO — The long-awaited renovations to two fire stations and the main police station in Atascadero took a big step Tuesday, Sept. 23, as the Atascadero City Council approved the issuance of Atascadero Financing Authority Lease Revenue Bonds to pay for the project.

The issuance of the bonds, which the council approved while also acting as the Atascadero Financing Authority, was one of two public hearings on construction projects in Atascadero. The other was a hearing to approve a $200,000 subsidy for the development of a mixed-use project surrounding the Centennial Walk near the Sunken Gardens, which was followed by the approval of the sale of the two vacant lots that will be the site of the project.

The bonds were issued in the amount of $29,525,000 by the Atascadero Financing Authority, which is comprised of the City Councilmembers and was established on July 22 for this project.

“Critical investment for the safety and well-being of our community,” said Administrative Services Director Jeri Rangel in introducing the item. “It will modernize and upgrade three essential first-responder facilities.”

As part of the project, Rangel continued, the city will replace the outdated and structurally deficient Fire Station No. 1 (located at 6005 Lewis Ave.) with a newly constructed, approximately 17,000-square-foot fire station. The new Fire Station No. 1 will also include an attached Emergency Operations Center. The project further includes the renovation and modernization of Fire Station No. 2 (9801 West Front) to bring the facility into compliance with current safety standards, applicable codes, and operational requirements. In addition, it provides for improvements to the city’s Police Headquarters (5505 El Camino Real) to enhance operational efficiency and align the facility with modern policing standards. These improvements are expected to include upgraded security systems, refreshed interior finishes, improvements to restrooms and locker rooms, and the construction of a new, detached dispatch building of approximately 1,300 square feet. The project is expected to be completed in three phases ending in fall 2027.

Rangel said semi-annual payments would be made using funds from Measure D2020, the sales tax initiative approved by voters in 2020. She also said that City Hall and other land parcels would be part of the lease structure along with the fire and police stations, but would be removed from the agreement after work on the public safety facilities were done.

In going over the details on the project, Assistant City Manager Lara Christensen emphasized it was important to modernize the fire and police facilities.

“We’ve been talking about this project for four years, after getting D20 passed, looking at ways to help fund the replacement of Fire Station 1, knowing it was a structurally and operationally deficient facility,” she said, noting that Fire Station 1 was 70 years old, and Fire Station 2 and the Police Headquarters were both about 40.

In council discussion, Mayor Charles Bourbeau got confirmation from Bond Counsel Vanessa Legbandt of Stradling, Yocca, Carlson, and Rauth that the city would have the option to refinance the bonds if interest rates were to drastically, and Councilmember Susan Funk noted that the project would not involve a tax raise, and City Hall could be taken off the agreement when the project was done.

Funk then moved to approved the item, with Dariz seconding, and it passed on a 5-0 vote, which was followed by applause.

“This is a milestone,” said Bourbeau, as he noted that a rating for the bonds would be given on Thursday, Sept. 25, and the pricing would be approved at the City Council’s next meeting on Oct. 7.

In the other public hearing, the City Council approved a $200,000 subsidy, and then in a Management Item, OK’d the sale of two vacant lots on either side of Centennial Walk for a mixed-use project. The sale price, to business owner Colin Weyrick, was for $150,000.

The sale, which admittedly was below market value, was part of a push to promote business in that particular area, according to Loreli Cappel. She said the project was part of the City Council Action Plan, which “supports downtown vitality, catalyzes development on vacant land, and incentivizes active ground-floor land uses.”

The project is a private mixed-use development that would generate approximately 50 jobs and an estimated $75,000 to $100,000 in annual tax revenue.

Funk asked about the proximity of the project adjacent parking lot, which is used by parents of nearby Atascadero Middle School during pickups and dropoffs, and Community Services Director Phil Dunsmore said the city was talking with the school about an agreement for parking and that “we’ll have dead done.”

The item issuing the $200,000 subsidy, and subsequent item approving the sale to Weyrick were both passed unanimously.

The City Council will meet next on Tuesday, Oct. 7, at 6 p.m.