Phase 3 Overview
June 6, 2023 BOS Meeting
Phase 3 Overview
The 122 new twin homes will be built at Kingston and Eucalyptus (resort site) and at Mesa and Trail View (park/school site). Up to 25% of twin homes can have Accessory Dwelling Units (ADUs). 40 Condominiums will also be allowed in the Village Center.
A 65-room hotel will be put in the Village Center at the northeast corner of Via Concha and Trilogy Parkway. Until now the Specific Plan (governing document) prohibited a hotel in the Village Center and there were no plans for bocce courts at the MAC. These changes impact nearby home values. When homeowners purchased their new homes from Shea, they were told that no hotel was allowed in the Village Center and there were no plans to add sports courts at the MAC.
The hotel was originally allowed at the resort site. It is a short walk to the Village Center. At a public meeting the developer acknowledged that keeping the hotel at the resort site was never reviewed as an option. Keeping the hotel at the resort site would reduce Shea’s 122 new homes by about 8 homes (estimate).
The Board of Supervisors agreed that Shea could use Quimby fees (fees paid to the county for park and recreational purposes) to complete the paved walking/cycling paths around the perimeter of Monarch Dunes.
Shea offered $4,234,000 to the HOA conditional on the HOA and residents supporting their Phase 3 plan without changes and the plan being accepted by the Board of Supervisors. Funds would be used for restaurant kitchen improvements, added sports courts, added pool, gym improvements and added parking. The $4,234,000 is a fixed amount and does not increase over time as costs increase. Parking is the lowest priority.
Shea's Direction Contribution: $2,775,500
SCI Direct Contribution: $600,000
Member Activity Fee (included in price of new homes): $858,600.
The 1.55-acre Village Green will be developed at Shea’s / SCI’s expense.
Construction should start in 2024 and take more than two years. Plan elements may change as we go through the development process with the Planning Department.
Resident Surveys
There were two Phase 3 resident surveys. The first survey was in February 2021 and allowed residents to vote and comment on elements of the Phase 3 plan. Results of the first survey were presented at an August 3, 2022, Town Hall.
At the August 3, 2022 Town Hall a second residential survey (August survey) was announced and results would be provided to the SLO County Planning Commission for their October Phase 3 review meeting.
The August survey allowed residents to only vote either for or against Phase 3 as a whole. If the August survey did not approve Phase 3, Shea reserved the right to withdraw the funds offered to the HOA.
February 2021 Survey
Shea reported that 61.5% of residents participated in the survey. Privately, a number of residents indicated that they did not have enough information about the plan to complete the survey.
There were over 2200 comments. Comments were not provided to residents. FAQs were provided at the August Town Hall and these were made available to the residents.
August 2022 Survey
The decision to move the hotel from the resort site to the Village Center was the greatest resident concern in the first survey. Moving the hotel to the Village Center is a significant financial benefit for Shea and while the developer stated that the hotel was important in attracting businesses to the Village Center, the developer had acknowledged that they had never evaluated the option of keeping the hotel at the original resort site.
The August 2022 survey allowed residents to only vote either ‘in favor’ or ‘not in favor’ of the entire Phase 3 package (not by components). Shea's payment of $4.2M to the HOA was dependent upon approval of their entire Phase 3 plan without changes.
The following points were made at the Town Hall meeting.
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In the Specific Plan Amendment Process the Planning Commission is not concerned with the amenities offered to the HOA.
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While the Board of Supervisors is interested in the HOAs position in the application process, HOA approval is not required to pass the amendment.
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Shea’s Position:
Shea’s offer is dependent upon community support for all aspects of the Amendment.
Shea’s offer will be withdrawn if the Board determines the community is ‘not in favor’.
Shea may pursue options without community input or benefits.
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From the HOA - While the HOA has influence on the Amendment, the HOA does have control of the amendment.
At the SLO County Planning review meeting Shea reported that more than 60% of respondents were in favor of the Phase 3 plan. The actual number of respondents has not been shared with the community.
