Category: Central Coast

-May 7,2022-
About a year after Baywood/Los Osos developer Bill Lee passed away, his family sold the half block complex including the Back Bay Inn, walk-up coffee shop – now the Nautical Bean, and the upscale sit-down restaurant Blue Heron – all along 2nd Street in Baywood.

The real estate and businesses are being purchased by Santa Barbara hotel owner and developer Carl Johnson who operates the landmark Upham Hotel on De La Vina, said to be Santa Barbara’s oldest continuously operating hotel, first opened in 1871. Johnson has owned the 50-room boutique hotel and restaurant Louie’s Bistro since 1982.

The new owners took over the Baywood property and business April 8. Included in the deal is the waterfront Bay Bay Inn, a 16-room boutique hotel, the shuttered Blue Heron upscale eatery completely remodeled by Lee but closed for many months due to the pandemic, and the newly leased coffee shop (Nautical Bean) -now open.
Not included are several outbuildings used for more hotel rooms and office use and some residential units as well as the Thai favorite 2nd St Cafe building, also owned by the Lee family. Sources say Johnson may end up acquiring these properties along 2nd St as well later. Not included in the sale is the Lee family-owned Merrimaker Bar at the end of the block, now open for business.

All of the properties had been improved by Bill Lee who worked hard over the years to attract locals and visitors to the area for festivals and music concerts on a regular basis.He is credited with forging a community garden in town paying for the costs. Lee retired from his very successful commercial real estate business- Lee & Associates- that still operates around the US West in favor of his adopted and layback home in Los Osos.
Both Lee’s Back Bay Inn and the Santa Barbara Upham Hotel share a similar upscale yet quiet feel and relaxing charm.Both the Santa Barbara property and Lee’s spread feature extensive outdoor garden areas and fountains including at the Upham – a gazebo and chairs for sitting out in the sun. In Baywood, hotel guests can also gaze out at the waters and birds of the Back Bay.

Mr Johnson was not able to comment but an associate, Jon Bowen says “We’re excited about the opportunity to be in the Central Coast with the purchase of the Back Bay Inn. The Back Bay Inn will complement our sister property, the Upham Hotel in Santa Barbara.”

“As we are taking over operations, we will take our time learning about the area and the property before we make any changes. We recognize the inn’s significance in the community and wonderful location. As we move forward, we will look to highlight the properties offerings and create memorable experiences for our guests.”

“We are currently seeking out an upscale restaurant operator to resume operations of the Blue Heron.”

The hospitality firm also owns Country House Inns -a collection of family owned inns located in California and Southern Oregon wine regions.

Before he passed away, Lee was working on a permit to add 9 more rooms to the Bay Bay Inn.

April 3,2022-

If you want to work – we’ve got good news for you.

San Luis Obispo County jobless rate fell to 3.3% in February 2022, down from 3.8% in January. A year ago the unemployment rate was more than double that.

The word seems to have spread that jobs are now plentiful here with the county labor force- people willing to work – bulging 2,800 just since December 2021 and up by 3,700 year-over-year according to an EDD monthly report. Our workforce now numbers 137,800 by place of residence that includes self-employed individuals -a growing category.

A widely reported exodus of workers and population from SLO during the pandemic may have turned around if the big increase in people returning to the labor force is real.

EDD is reporting a 6.5% increase in the numbers of jobs up from 125,000 a year ago to 133,200. That’s 8,200 more people working in the county now according to the same survey.

The county economy added both farm and non-farm jobs and actually shows more people working in February than in the height of the holiday season in December although farm jobs make up part of the increase. Month over month, non-farm jobs in the county jumped by 1400 to 116,700 from January.

Farm jobs -year over year – are stable despite the drought numbering 5000.

Tourist related jobs up 26%

The largest increase in jobs by category came in leisure services and hospitality reporting an increase of 3800 jobs with the revival of the tourist industry here. The increase was seen month over month as well with 200 more jobs in February than in January indicating optimism that 2022 could be a big travel year.Hearst Castle is set to open after being shut for 2 years.

The restaurant industry has recovered with jobs in food and drink place up 25%. and the industry crying for workers.

Also showing good growth are trade jobs up 600, business services up 500 and educational and health up 900 – all year over year.

Construction jobs actually fell by 1000 from a year ago but climbed from January to February by 400.

California numbers

AP reports that California’s economy roared to life in February as employers added a surprising 138,100 new jobs, accounting for more than 20% of all employment gains nationally.

“It’s a staggering jump,” said Michael Bernick, a former director of the state Employment Development Department who is now an attorney with the firm Duane Morris. “Virtually all sectors are showing gains.” The California Employment Development Department reported that the state has now regained 87.2% of the jobs that were lost.

California’s unemployment rate fell to 5.4% from 5.7% in January, giving the state the third lowest rate in the country behind New Mexico and the District of Columbia. Nationally, the unemployment rate is 3.8%.California ranks third in the nation for the fastest job growth, behind Nevada and Hawaii.

-January 20,2022-

Two new retailers will be coming to the Madonna Plaza in San Luis Obispo this new year, each leasing about 10,000 square feet or half the space occupied by PetCo next to Ross. PetCo closed their store last month.

The news is posted on the real estate website for the center showing each of the new tenants’ logos and their new location in the center.

In addition the city building department confirms permit applications have been filed to divide the space in half, as yet not issued.

Both are national retailers, not yet in town but with stores on the Central Coast. Five Below is a teen-oriented discount store with a location in Paso Robles. The retailer sells products that cost up to $5, plus an assortment of products from $6 to $25.The company has 1,200 stores in 40 states.

Party City is said to be the largest party supply store in the US with some 900 locations. They have a store in Santa Maria.

caption:shopping center website shows location of new retailers

-January 2,2022-

Reservoir storage in Lake Nicimiento that straddles the SLO and Monterey County border doubled from mid-December to January 2 increasing from around 53,000 Acre Feet to nearly 108,000AF . The lake enjoyed both good rainfall nearby runoff from a series of vigorious  storms that hit the Big Sur area over the holiday period. The lake provides drinking water for Paso Robles among others communities in San Luis Obispo County including the City of SLO. The lake has a way to go to fill, holding nearly 378,000AF at capacity.

The Nacimiento Reservoir provides flood protection and is a source of supply for groundwater recharge for the Salinas Valley. It is owned and operated by the Monterey County Water Resources Agency. Since 1959, the San Luis Obispo County Flood Control and Water Conservation District has had an entitlement to 17,500 acre-feet per year (AFY) of water from the reservoir for use in San Luis Obispo County.

Approximately 1,750 AFY have been designated for uses around the lake, leaving 15,750 AFY for allocation to other areas within the County of San Luis Obispo.

The County began construction in 2007 on a 45-mile pipeline project to deliver water from the Nacimiento Reservoir to five participating agencies and cities. The City has a contractual entitlement to 5,482 AFY of water from the project. The construction of the pipeline and delivery facilities was substantially completed in December 2010 and water deliveries to the City began in January 2011.

On  a regular basis the lake provides nearly 72% of the water  the City of San Luis Obispo uses annually. In 2019 the City used 3400 AF from this key reservoir.

The City also uses water from Santa Margarita Lake, Whale Rock Reservoir but no groundwater.

As of this past September Nacimiento had fallen to just 13% of capacity due to two years of drought and use by farmers in the Salinas Valley who also depend on it. Now it is approaching 30% of capacity.

-December 12,2021-

Porsche dealership opening in San Luis Obispo

Porsche lovers and wannabes rejoice! The premium car company will offer their automotive lineup at a new dealership in San Luis Obispo as soon as next Spring. Cardinale (CPC) Auto Group is planning to remodel the former Coast Nissan building just east of AT&T at 12100 Los Osos Valley Road.

According to a building permit application to the city late last summer, the agent for CCP Auto Group who owns the Nissan and BMW dealerships in SLO, will spend $4.5 million to remodel the empty showroom vacated by BMW now that they have relocated to a new site on Calle Joaquin along Hwy 101.The application names Porsche as the line of cars to be sold at this LOVR location

Sales agents at Coast Nissan, also owned by CPC Auto Group next to where the new Porsche dealership will be located, says the company expects to open as soon as this coming Spring.

CPC Auto Group, based in Monterey, owns 24 auto dealerships in
California,Arizona and Las Vegas including a Porsche dealership in Bakersfield. Besides Bakersfield, the closest Porsche dealer is in Santa Barbara.

Porsche would join a growing group of luxury vehicles sold in SLO that includes BMW, Mercedes and Volvo among high-end European brands.

Porsche has enjoyed a big increase in sales in California according to the New Car Dealers Assn. Their latest report shows Porsche leading all brands in sales increases by percent through the first half of 2021 with a 64% increase vs the same period the year before.

The brand has received more good news with JD Power ranking it as the top brand in customer satisfaction. The latest J.D. Power APEAL Study of customer experience with a new car, ranked Porsche as the number one premium brand for the third year in a row.

While the iconic Porsche 911 is probably the best known model in the sporty lineup,the German manufacturer has made a big push into the electric vehicle market this past year.

Reports say sales of the all-electric Porsche Taycan family
in the first half of the year stand at 19,822 (up 342% and 12.9% of the total volume), which indicates that the company will sell about 40,000 of Taycan and Taycan Cross Turismo in 2021.

That would mean Taycan models would overtake sales of the flagship gas-burning 911 sports car this year. Porsche is also introducing the electric Macan model making it likely gas powered models would continue to decrease by percent of sales.In Europe, already around 40% of Porsche sales are plug-ins (about 16,000 out of 40,435 total).The Macan is a small SUV that Car and Driver reports” can dice it up with sports sedans on a racetrack and carry a reasonable cartful of groceries home from Costco.” Less expensive than other Porsche models, the car sells in the range of $56,000 to $66,000.

Like other car companies Porsche is experiencing shortages from the pandemic disruption including chip shortages and supply backlogs. Many of the dealers in SLO report few new cars on the sales lots.In October Porsche warned its dealers in the US that customers might have to wait an extra 12 weeks to get their cars, because they lack a chip used to monitor the car’s tire pressure.

When you get your hands on it, the iconic but pricey car is likely to set you back $100,000 for your ride, depending on model. Ahh, Porsche enthusiasts swoon – but what a ride.

The high-end electric Porsches are competing with top selling Tesla for buyers. Tesla has a showroom in Santa Barbara and is rumored to be looking to open showroom in SLO in the next year or two

looks like 7 to 9 inches in the Sierra and up to 7 inches along parts of the Big Sur coast.

-November 3,2021-
Pet store retailer Petco is closing their store in Madonna Plaza in December. The 20,000sf storefront at 271 Madonna Rd, San Luis Obispo is up for lease. Store employees say there are no plans to relocate elsewhere in town. They say there is a rent increase dispute with the landlord.

Petco stores are mostly in California with 191 locations, 13% of all Petco locations in America.There are Petco stores in Paso Robles, Arroyo Grande and Santa Maria.

Petco Health and Wellness Company, Inc. is an American pet retailer with corporate offices in San Diego and San Antonio. Petco sells pet products and services, as well as certain types of live animals. Petco sells and holds fish, reptiles, small birds, hamsters, guinea pigs, and mice for adoption.The company is publicly traded.It has a market value of $6.5 billion.

A real estate site plan shows the space may be divided for two new tenants.

At the Morro Bay City Council meeting this week , the council voted 4-1 to notify Vistra Corporation that  the City of Morro Bay will not exercise the option to retain the famous stacks, and directed city staff to initiate discussions with Vistra for an appropriate memorial to the stacks and the power plant. Two council members said all the feedback from residents agree that the stacks should come down. Now the incentive for both the city and Vistra is to remove the structures. Vistra now has until December 2027 to remove the stacks or pay the city $3 million. Vistra is responsible for the demolition of the turbine building as well as the stacks.

History of the Morro Bay Stacks
•The stacks were necessary for the operation of the power plant to vent exhaust flow above
ground level and were constructed contemporaneously with the plant.

•The first stack was constructed between the years 1953 – 1955. The stack is formed
concrete with a brick liner and served units 1 and 2.

•The second and third stacks serving units 3 and 4 separately were constructed in the early
1960’s to serve the new power units and became operational in 1962. These stacks are also
concrete and have steel liners, an advancement in technology from the original

.•All three stacks currently serve no use other than for support of PG&E communications  equipment installed at the top of stack 3. This equipment will need to be relocated if the stacks are demolished.

•The lighting on the stacks is required by the Federal Aviation Administration including the
number, type, color and flashing frequency to protect aircraft from a possible collision with
the stacks