As we approached the Dalidio farm on Madonna Road, a sense of anticipation grew within me

Zachary Austin

Marx

ENGL 134

11-22-04

“Just Another Santa Maria”

I turned the car down Dalidio road, a stand of eucalyptus trees on my right blocking out the bright afternoon sun. The SLO Promenade shopping center sprawled to my left, making the newly paved road seem small and narrow. The stand of eucalyptus soon gave way to an open field, rows of crops spreading as far as the eye can see. This huge field comprised the Dalidio farm, 131 acres of type I Salinas soil adjacent to Highway 101, ideally suited for producing 13 different crops. This farm is the first thing that greets visitors from the south, a landmark of San Luis Obispo’s agricultural heritage. As I gazed out at the farm, I couldn’t help but feel a sense of irony. With the 175,000 square foot SLO Promenade sitting just yards behind me, San Luis Obispo’s past stretched out before me, and what could very well be its future spread behind. It staggered me to think that this past could soon be erased, paved over to build yet another large shopping mall. If this project were completed, two massive shopping centers sitting side-by-side would be the first thing that greeted visitors to San Luis Obispo. Gone would be the rich agricultural heritage, replaced by nearly 80 acres of big-box commercial stores. This proposed project would not only irreparably harm San Luis Obispo’s image, but it would be incredibly costly to the city in the long run.

Located between Highway 101 and Los Osos Valley Road, the Dalidio farm is a 131-acre piece of land, currently owned by South County Farmer Ernie Dalidio. In 1992, faced with declining agricultural profits, Dalidio was looking for a new way to make money on this parcel of land located just 4 miles from downtown San Luis Obispo, writes Daniel Blackburn[1]. Dalidio was approached by William Bird, the developer responsible for the SLO Promenade. The two formulated plans for a shopping complex on Dalidio’s property, despite the fact that Bird was embroiled in an ongoing legal dispute with the lender who had financed the completion of the SLO Promenade. After several years of legal battles with Mutual of New York and the city of San Luis Obispo, Bird was able to pay off his debts.[2] The duo got approval from the San Luis Obispo City Council for a preliminary plan for the Dalidio Marketplace, involving 76 acres of retail space and 55 additional acres of open space for the city’s use. This land would include a senior center, recreation fields, and several affordable housing units. On July 6^th, 2004, the San Luis Obispo City Council approved the Dalidio Marketplace project, despite heavy protest from local merchants and citizens. Following this decision, three petitions were crafted, each aiming to overturn the City Council’s decision and put the fate of the Marketplace project in the hands of the voters. Thousands of signatures were collected, more than enough to reverse the Council’s decision. A special election is scheduled for April 26^th, 2005, when San Luis Obispo will decide whether or not to approve the Dalidio Marketplace.

The Dalidio project would involve the creation of nearly 76 acres of commercial retail space on existing farmland, and the creation of the Prado Road overpass to cope with the huge influx of traffic the Marketplace would bring.[3] In the city’s agreement with Bill Bird, San Luis Obispo would be responsible for 30% of the costs of the Prado Road overpass, while Bird would arrange financing for the other 70%. To defray these costs, the city would issue a 30 year bond to cover these costs. This bond would divert funds from the desperately needed retrofit of the Los Osos Valley Road overpass. With a Home Depot already in place and a Costco approved for construction, traffic along LOVR will increase considerably. While the street itself has been widened, the overpass is still too narrow, incapable of handling the increased traffic. The construction of the Marketplace and its accompanying overpass would not only create new traffic problems, but it would rob funds from traffic projects that are already needed.

Proponents of the Marketplace argue that the city would receive millions of dollars in tax revenues if the project were completed. However, in San Luis Obispo’s agreement with Bill Bird, the city has agreed to rebate up to half its sales tax revenue to Bird for 30 years to repay Bird for his contribution to the cost of the Prado Road overpass.[4] The city would lose a significant amount of money to Bird if the Marketplace was completed, money that would otherwise have been spent on traffic projects like the LOVR overpass, to maintain police and fire departments, to maintain the small town charm that makes San Luis Obispo great. Proponents of the project argue that Bird is receiving the credit because the infrastructure involved in the project is so expensive. This argument runs directly contrary, however, to the City Council’s long-standing policy that new development pays its own way. The Marketplace is just a bad deal for the city of San Luis Obispo.

Not only would the Dalidio Marketplace project be a terrible idea financially, but it would destroy the small town charm that makes San Luis Obispo such a great place to live. At a debate before the recent city council election, citizens voiced their concerns that San Luis Obispo was in danger of becoming “just another Santa Maria.” Located 30 miles south of San Luis Obispo, Santa Maria was once a town with a small, charming downtown, writes Chris Kenton of BusinessWeek magazine.[5] In the 1970s, Santa Maria bulldozed its historic city center and erected a huge shopping mall. This mall generated a great amount of revenue for the city- for about ten years. Once several deep discount and big box stores started popping up on the outskirts of Santa Maria, the mall’s financial numbers quickly went into the red. By the early 1990s, much of the mall’s storefront was left empty, and its anchor department stores are hurting financially. In his article, Kenton illuminates the exact problem with big box stores. Many of these huge retailers do generate hefty revenues for the cities they occupy, for a short period of time. However, these short-term gains simply serve to dilute demand, as more and more towns look to the quick fix of big box stores as a miracle pill for their ailing economies. Now, you can find towns like Santa Maria all over California- small, thriving downtowns reduced to ghost towns by big box stores that soon fail.

The Dalidio marketplace project, if completed, would occupy more retail space than all of downtown San Luis Obispo combined. The burgeoning big box store population would quickly drive these local businesses into bankruptcy, luring customers with low prices. Two studies, one commissioned by the Marketplace developer and the other by Downtown businesses, found that the Marketplace “will cause significant and irreparable economic and social harm to the Downtown.[6]” These stores would effectively destroy the small town charm of San Luis Obispo, rendering it into just another faceless “big box town” along Highway 101.

When I first visited the Dalidio farm, I was struck by the fact that it was surrounded by a bustling commercial district.. The balance between agriculture and commerce was a beautiful one, a view into the future of San Luis Obispo. However, the construction of the Dalidio Marketplace project would irreparably upset this balance, leaving San Luis Obispo with the burden of over 50 acres of big-box commercial stores and destroying the town’s charming image. The Dalidio Marketplace would have an immeasurable negative impact on San Luis Obispo’s economic and cultural future, one that is currently very bright. The citizens of San Luis Obispo will have the final say on the Marketplace, and the election on April 26^th will be one of the most important the city has ever witnessed.