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Arroyo Grande City Council denies appeal against affordable housing proposal

By KSBY Staff Apr 15, 2026 | 12:42 AM

In a 3-to-1 vote, the Arroyo Grande City Council voted to deny an appeal against a new housing development Tuesday night.

The vote comes after local businesses pushed back against a new housing development that would bring nearly 100 homes to the Oak Park Professional Plaza.

READ MORE | Businesses appeal new housing development at Arroyo Grande plaza

It was standing room only in a meeting that stretched through the night as neighbors lined up to voice their concerns during public comment.

Many were against the proposed development, saying it raised safety and parking concerns for the area.

However, a few supported the development saying affordable housing was needed in Arroyo Grande.

After hearing the community concerns, Council members shared their opinions before the vote.

“I do not see any impacts from this that rise to the level of health and safety standard that we’re being asked to here,” Council member Jim Guthrie said.

Guthrie and many of the council members expressed legal concerns if they approved the appeal.

“If we approve the appeal and deny the project the city will get sued, the project will be built anyway and that’s what’s going to happen,” Mayor Pro Tem Jamie Maraviglia said before the vote.

Council Member Aileen Loe was the lone ‘no’ vote. She said, “I think the state, with their heavy hand, it’s hard for me to grapple.”

“Having heard everything that I heard, I can’t dismiss the concerns that I’ve heard. So I have to say I won’t be supporting the staff recommendation,” Loe said.