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SLO County denies appeal allowing development to continue in Baywood Park

By Valentina Saldaña Sep 2, 2026 | 11:27 AM

A mixed-use development at the corner of Santa Maria Avenue and 2nd Street in Los Osos will move forward after the San Luis Obispo County Board of Supervisors denied an appeal of it.

One of the appellants told KSBY News that they were concerned about the height of the building and how it would fit into the character of Baywood Park.

Frankly, weve had too many two-stories, new big box type of buildings coming in, and this is not an apartment or hotel row, said Vincent James Devine.

While other residents are concerned over parking and the towns long-time farmers’ market.

We just want to keep the park in Baywood,” said Willis Schwebel, Baywood Park resident.

On a Monday… see how many people are standing in soup line and fish line on that property where he wants to build this two-story eyesore,” said Anita Schwebel, Baywood Park resident.

There is not going to be enough room there, especially when they start construction,” said Linda Riedel, Los Osos resident. “So theyre talking about potentially moving farmers’ market to 2nd Street. Well, where is High Street Deli people gonna park?”

San Luis Obispo County District 2 Supervisor Bruce Gibson said that the board weighed all the requirements.

How high the building is and how the streetscape will be developed with new sidewalks and parking and access and things like that, Gibson said.

He added that this project offsets the amount of water that its going to use, according to provisions in the building code.

On Tuesday, the board denied the appeal, allowing for a two-story, three-office and three-apartment space building to continue.

I think its a positive thing for the community. Folks will have a variety of opinions about whether a particular proposal is too big or in the right place,” Gibson said.

But some residents say they will appeal again.

Were going to appeal immediately to the Coastal Commission and hopefully well know right away when our date is and when we can discuss it, Devine said.