Valley Fresh Market and Central Coast Distillery are confirmed to open in early summer

ATASCADERO — Construction is moving forward on the Del Rio Road Commercial Area, a long-anticipated development designed to bring new businesses, jobs, and services to the community. With five buildings currently under construction out of a total of 10 planned, city officials say the project is on track and already attracting notable tenants.

The development includes a mix of retail, office, and light industrial spaces, as well as potential housing. Currently under construction are five buildings: a 32,000-square-foot space for Valley Fresh Market, a 9,000-square-foot retail building, two three-story buildings sized at 10,000 and 8,600 square feet for office and mixed-use, and a 4,500-square-foot retail structure.

Two major tenants — Valley Fresh Market and Central Coast Distillery — are confirmed to open in early summer, with doors expected to open in June and July.

“This location has been planned for commercial development for many years as part of the Del Rio Road Commercial area specific plan,” said Community Development Director for the City of Atascadero Phil Dunsmore. “The city is trying to focus commercial development that will produce jobs, services for the community, and even housing within close proximity to Del Rio Road, El Camino Real, and Highway 101.” 

The 11.1-acre project site is mostly within the boundaries of the Del Rio Road Commercial Area Specific Plan, adopted in 2012 and amended in 2020. The amendment followed the formal withdrawal of Walmart’s permits, prompting the city to revise traffic mitigation requirements and modify the list of allowed land uses. High-traffic operations such as fuel stations and drive-thrus were eliminated in favor of uses more compatible with community needs and environmental goals.

“There are several other large commercial and mixed-use developments that are planned for this general location, including a large mixed-use project west of 101, known as Barrel Creek, and a large RV lodging and tourism site at the corner of Del Rio and El Camino known as Del Rio Ranch,” said Dunsmore. 

The current plan calls for a total of 32,400 square feet for the grocery anchor, 31,700 square feet of additional retail and commercial uses, 18,600 square feet of light-industrial space, and 31,500 square feet of office space. The upper floors of the office buildings may be developed as residential units, potentially adding up to 82 housing units depending on future permit applications.

The northern portion of the project is envisioned as a business park focused on office and light industrial uses. While the northernmost parcel lies just outside the specific plan boundary, it is zoned for commercial retail and integrated into the overall site design. Shared parking, access, and drainage systems are planned to ensure the development functions as a cohesive center.

The Del Rio project is part of a broader wave of development in the area. Nearby large-scale projects include Barrel Creek, a major mixed-use development west of Highway 101, and Del Rio Ranch, a tourism and RV lodging site planned for the corner of Del Rio and El Camino Real.

“Combined, these projects will have a significant contribution to the local economy while providing housing, jobs and tax revenue. The land uses planned for these areas include retail, office, light industrial, restaurants, lodging, and residential,” Dunsmore added.

Although early progress was delayed by about a year due to weather conditions, city officials confirm that construction is now moving steadily ahead. There have been no significant changes or setbacks to the project since work began.

For more information on the Del Rio Marketplace, visit atascadero.org/project/del-rio-marketplace

Feature Image: Construction is underway on the Del Rio Road Commercial Area in Atascadero, where Valley Fresh Market and Central Coast Distillery are set to open this summer. Photo by Camille DeVaul/ATN