Legal settlement reached to create smaller Dana Reserve development in Nipomo
Dave Alley
NIPOMO, Calif. – A legal settlement has been reached between the developer of the Dana Reserve project in Nipomo and the two groups who filed a lawsuit against the planned housing and retail community.
On Wednesday, a joint press release was sent out by project developer NKT Development, as well the Nipomo Action Committee (NAC), and the California Native Plant Society (CNPS).
In the release, it was revealed the three sides has agreed to a deal that will, if approved, establish a revised Dana Reserve Specific Plan, which will create a smaller, less environmentally impactful development.
Some of the key elements of the agreement include the reduction in housing units by 229, which equates to an approximately 16% smaller project size.
The smaller design will result in a new perimeter to the development layout, which the parties said will help address some neighborhood and community concerns.
The release also indicated the the project will still include deed-restricted, affordable housing units, with first priority given to Lucia Mar Unified School District employees, as well as other housing types.
Other notable benefits that will remain in place are the down payment assistance program, local priority, and on-site childcare.
Another key element of the settlement will be a newly created offsite biological mitigation effort, which the parties said will help support long-term protection of sensitive manzanita habitats outside of the project boundaries.
The new design will now protect additional sensitive plant species and 195 coast live oak trees, as well as contribute financial resources for public benefit specific to Nipomo, which will overseen by the Nipomo Action Committee.
“We have worked closely with NAC and CNPS to modify the project in a way that is mindful of the community concerns and still provides a meaningful ladder of housing,” said Nick Tompkins, Nick Tompkins, Dana Reserve Managing Partner. “We appreciate our local representatives who make land use decisions. Our hope is that the commissioners and supervisors will support the settlement and recognize the time, effort, and compromise it took to reach this agreement.”
“We worked tirelessly in this settlement process with all parties,” said Alison Martinez, Nipomo Action Committee Director. “We appreciate all the work and support of our community members and are ready to move forward. This settlement will provide significant financial resources to address future priorities of our community. I anticipate this settlement, as agreed, will now proceed through the county approval process.”
The Dana Reserve has been much-discussed and much-debated in the Nipomo area, as well as throughout San Luis Obispo County since the project was first planned nearly 10 years ago.
The Dana Reserve proposal is a 288-acre master-planned community that featured in its original plan up to nearly 1,400 residential units, 110,000-203,000 square feet of commercial and non-residential (Visitor Serving/Hotel, Education) floor area, a minimum of 55.6 acres of open space and 6.3 acres of recreation, and related circulation and infrastructure.
The project site is located on a highly visible 288 acre piece of property adjacent to Highway 101, on the westside of the freeway, just south Willow Road. The property is passed by thousands of vehicles daily traveling on Highway 101 and is located about one mile north of Tefft Street, the main commercial corridor of Nipomo.
In April 2024, the San Luis Obispo County Board of Supervisors voted 3-2 in favor of the project.
Soon after, the NAC and CNPS filed a suit to stop the project citing environmental concerns.
Now, the three sides have come to an agreement, which will now return to the County of San Luis Obispo for review and approval.
No timeline on when San Luis Obispo County officials will begin the new review process.