A long-running debate over the future of Grover Beach's coastline continued Tuesday. The city's Planning Commission unanimously approved a four-story mixed-use condominium development despite objections from residents who say another tall building will change the city's character.
The commission voted 5-0 to approve Coastal Community Builders' proposal to replace the aging Beach Front Plaza shopping center on West Grand Avenue. The mixed-use development will include 39 condominiums for sale, three commercial suites and two affordable condominiums for very low-income buyers.
A continuing debate over growth
The vote marks the latest chapter in Grover Beach’s transformation on West Grand Avenue, where several taller mixed-use developments have been approved in recent years.
City leaders have encouraged higher-density development to help meet California's housing requirements and increase the local housing supply. But many residents have argued the projects are changing the city's small-town feel, reducing commercial space and obstructing coastal views.
Several local residents addressed the issue during public comment.
Supporters said the project would create more opportunities for people to buy homes in a region with a limited housing supply.
Owen Blackwell, a San Luis Obispo County resident and Cal Poly student, said developments like the one proposed give younger residents a chance to stay on the Central Coast after graduating college.
“Seeing development like this come to this commission and seeing the possibilities of increased housing in this area gets me really excited about my future and my ability in the future to be able to live in this county,” Blackwell told commissioners.
Others argued another four story building would change the character of Grover Beach and eliminate its coastal views.
"I think that the idea of more housing is great in theory, but I don't think that this is the way to do it," Grover Beach property owner Nikki Homan said during the hearing. "They're not only obstructing the view, they're blocking the sun, they're blocking the breeze, they take away from the charm of the small beach town that Grover is."
Why commissioners approved the project
Planning commissioners acknowledged resident’s concerns but said the proposal complies with the city’s standards and state housing laws.
One issue commissioners did raise involved the project's two affordable condominiums. Under the original proposal, those units would have been located on the ground floor.
Before approving the project, commissioners added a condition requiring the two affordable condominiums to be distributed throughout the building, rather than on the ground floor as originally proposed. City staff said the change would help ensure equitable access to the building's amenities and align with fair housing objectives.
The Grover Beach planning commission voted 5-0 to approve the project.
How the affordable homes will work
Based on San Luis Obispo County’s current affordable housing standards, city officials said a two-bedroom very low income condominium could have an estimated maximum sales price of $163,000. Although, the final sales price for the project’s affordable units has not yet been established.
Under the state’s 2026 income limits, a three-person household earning up to $68,800 annually could qualify to purchase one of the very low income units. Meanwhile, a single person earning up to $53,500 annually could also qualify for that same unit.
Developer has faced separate litigation
Coastal Community Builders is a privately held real estate development and home building company headquartered in Pismo Beach. According to the company’s website, it has built more than 3,500 homes under the company’s current President, Gary Grossman.
The company has faced legal challenges involving another one of its developments.
KCBX News reported in May 2024 and May 2025 that homeowners at the San Luis Ranch development in San Luis Obispo sued the company. Both parties in the suit are scheduled to check the status of the lawsuit on September 11, 2026. The homeowners alleged their homes were uninhabitable from construction defects, water intrusion and toxic mold. Coastal Community Builders declined to comment on the pending litigation at the time.
What’s next
Tuesday's vote clears the way for redevelopment of the Beach Front Plaza site, although the developer must still satisfy the conditions of approval before building permits can be issued.
Grover Beach City staff say unless the project is appealed to the City Council, the Planning Commission’s decision is final.
