Nipomo Community Plan Update – FAQ's

Author: Board of Supervisors
Date: 7/30/2025 3:38 PM

Frequently asked questions regarding the Nipomo Community Plan Update for residents interested in the 2025 Community Plan Process.

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A Message from Supervisor Jimmy Paulding

I’m proud to have made the Nipomo Community Plan Update a top priority for the Board of Supervisors and our Planning Department. This long-overdue effort is helping us shape a shared vision for Nipomo’s future, and I’ve truly enjoyed engaging with residents to hear your concerns, ideas, and aspirations. I believe that good planning starts with listening—and together, we are charting a positive, community-driven course for Nipomo’s future.

Public safety has always been my top priority. One of the accomplishments I’m most proud of is securing full funding for the Nipomo Sheriff’s Substation—an identified need for over 30 years. I fought hard to ensure this critical investment moved forward, and I’m grateful to my colleagues on the Board of Supervisors for approving the $12 million allocation that will make it a reality.

In addition to that effort, I supported a new strategic plan for our SLO County/Cal Fire Department—another major step forward for Nipomo and our entire county. Thanks to this plan, fire staffing in Nipomo has already improved. For example, Station 20 now has three firefighters per engine, consistent with best practices and standards in neighboring counties. The goal is to expand this same level of service to Station 22 as well.

Nipomo is the busiest town in the unincorporated parts of San Luis Obispo County, and I am thankful to County leadership and the Board of Supervisors for recognizing and prioritizing our community’s public safety needs. But the work is not done. The fire strategic plan also calls for a new fire station on the west side of Nipomo—a vital project I am fully committed to making a reality.

These efforts reflect my broader commitment to ensuring Nipomo receives the resources, infrastructure, and attention it deserves. This community plan update is our chance to make positive improvements in Nipomo, and we should capitalize on this moment. I look forward to continuing this work with all of you as we plan for a safer, stronger, and more vibrant future.

Questions and Answers Included in this FAQ: 

What is a Community Plan?
What was in the 1994 Nipomo Community Plan?
What’s been completed since 1994?
What still needs to be completed?
What is the status of the Nipomo Sheriff Substation?
What is the timeline for the 2025 Community Plan Update?
What is the Public Facilities Financing Plan (PFFP)?
What did the 2025 community survey reveal about top community concerns?
What quality-of-life improvements are most desired by residents?
What improvements are most desired in Olde Towne Nipomo?
What are the community’s views on housing development?
What are the top projects residents want to see implemented?
Is there community support for generating local funding to pay for improvements?
What are the major takeaways from the community survey?
Should Nipomo explore incorporation as a city?
What are the challenges with Nipomo incorporating as a city?
Do Nipomo property taxes go to nearby cities?
Why does it feel like Nipomo doesn’t get its fair share of services?
Which projects may be considered for funding under the updated PFFP?
How will the County pay for all of these projects?
Will my property taxes go up because of this plan?
What’s the difference between developer impact fees and general taxes?
How are developer impact fees calculated?
Why is the fee structure being updated now?
Can impact fees collected in Nipomo be used elsewhere in the County?
What is a County Service Area (CSA) or Zone of Benefit (ZOB), and how might it apply in Nipomo?
What role do grants play in the PFFP?
What if grant funding doesn’t come through?
Will this plan help address traffic on key corridors?
What public safety improvements are included in the PFFP?
How can I stay involved and informed?
When will these improvements start?
What is the status of the Southland Interchange project in Nipomo?

Q: What is a Community Plan?

A Community Plan is a long-range planning document that guides growth, public investment, and land use decisions in a specific area typically over a 20-year period. It is part of the County’s General Plan and typically includes:

• Land Use – What types of development can occur and where
• Transportation – Roads, sidewalks, bike lanes, and transit infrastructure
• Parks and Public Spaces – Trails, open spaces, and community facilities
• Public Safety – Fire protection and law enforcement services

The goal is to reflect local values and priorities while shaping future development in a coordinated, sustainable way.

Q: What was in the 1994 Nipomo Community Plan?

The 1994 plan identified key community goals and improvements, including:

• A high school and a branch library
• A sheriff substation
• Two freeway interchanges (Willow Road and Southland Street)
• Tefft Street interchange improvements
• Restoration of the Dana Adobe
• Pocket parks and beautification programs
• Bike and pedestrian trail improvements
• A linear park from Olde Towne to the Dana Adobe
• A business improvement district
• Widening of Highway 101

Note: This is an incomplete list.

Q: What’s been completed since 1994?

Many projects outlined in the 1994 plan and related planning efforts have been accomplished, including:

• Construction of Nipomo High School and Central Coast New Tech High
• Dorthea Lange Elementary School
• Willow Road Interchange and improvements to Tefft Street
• New Nipomo Library
• Nipomo Skate Park
• Commercial development along West Tefft
• Dana Adobe restoration and public grounds
• Drainage system improvements

Note: This is an incomplete list.

Q: What still needs to be completed?

Several major goals remain incomplete:

• Full implementation of the Nipomo Community Park Master Plan
• Construction of the Southland Interchange
• Development of pocket parks and a park in Olde Towne
• Bike and pedestrian improvements
• Replacement of the former Community Center, which was lost to fire
• Addressing growing traffic and housing challenges
• Construction of the Nipomo Sheriff’s Substation (scheduled for 2027 – more information below)

Note: This is an incomplete list.

Q: What is the status of the Nipomo Sheriff Substation?

• Design was funded in 2023; construction was funded in 2025
• Construction is expected to begin in 2027 and be completed in 2028
• The substation will be located in Olde Towne Nipomo near Adobe Plaza
• Benefits include improved response times, the ability to report crimes in person, and a public meeting space

Q: What is the timeline for the 2025 Community Plan Update?

• The update process is scheduled to occur from Spring 2025 through Fall 2026
• Two public workshops have been held so far, with two more planned (the next is in October 2025)
• Over 1,200 residents participated in the online community survey
• County staff will prepare a Public Facilities Financing Plan (PFFP) to help fund projects, alongside the updated Community Plan itself
• The Board of Supervisors will hold a public hearing following the community outreach phase to formally approve the updated plan

Q: What is the Public Facilities Financing Plan (PFFP)?

The PFFP is a comprehensive funding strategy that outlines how the County will pay for public infrastructure needed to serve Nipomo’s growing population. It helps ensure that new development pays its fair share for facilities like parks, roads, public safety, and community centers.

Q: What did the 2025 community survey reveal about top community concerns?

The most frequently identified issues include:

• Traffic congestion
• Lack of sidewalks and bike lanes
• Not enough local shops and restaurants
• Insufficient parks & recreational opportunities
• Concerns about housing development
• Lack of comprehensive community planning
• Limited public safety resources
• Water supply and drought concerns
• Housing affordability

Note: This is an incomplete list. Visit here for complete survey results, or here for a helpful summary.

Q: What quality-of-life improvements are most desired by residents?

Survey responses indicate strong community interest in:

• Improved traffic flow and street design
• More local restaurants, shops, and cafes
• Revitalization of downtown Olde Towne
• New sidewalks, bike lanes, and safer pedestrian crossings
• Increased law enforcement presence

Note: This is an incomplete list. Visit here for complete survey results, or here for a helpful summary.

Q: What improvements are most desired in Olde Towne Nipomo?

Survey respondents prioritized:

• Local events and farmers markets
• More restaurants and cafes
• Improved sidewalks, landscaping, and overall beautification
• Preservation of Olde Towne’s historic charm
• Development of small shops, boutiques, and a neighborhood park

Note: This is an incomplete list. Visit here for complete survey results, or here for a helpful summary.

Q: What are the community’s views on housing development?

• 35% believe Nipomo has grown enough and future development should be paused
• 21% support more housing if it is affordable for working families and seniors
• 18% support housing development wherever needed
• 17% support infill development but not expansion of community boundaries
• 9% were unsure

Q: What are the top projects residents want to see implemented?

• Construction of the Southland Interchange
• Communitywide road improvements
• Sidewalk, bike lane, landscaping, and safety upgrades along West Tefft
• Enhancements in Olde Towne and development of Jim Miller Park
• Creation of a community center and a bike/pedestrian pathway network

Note: This is an incomplete list. Visit here for complete survey results, or here for a helpful summary.

Q: Is there community support for generating local funding to pay for improvements?

Yes. A strong majority—84% of survey participants—indicated they are open to exploring local funding options, depending on the types of projects proposed.

Q: What are the major takeaways from the community survey?

• Traffic and road circulation are the top priorities
• There is strong demand for walkable and bike-friendly infrastructure
• Residents want a more vibrant downtown with shops, events, and restaurants
• Parks, trails, and public safety resources remain high priorities
• Specific projects with strong support include the Southland Interchange, West Tefft improvements, Jim Miller Park, and a new community center

Note: This is an incomplete list. Visit here for complete survey results, or here for a helpful summary.

Q: Should Nipomo explore incorporation as a city?

• 43% of respondents said Nipomo should explore incorporation
• 34% were unsure
• 23% were opposed

Q: What are the challenges with Nipomo incorporating as a city?

Incorporation faces multiple hurdles:

1. Insufficient local revenue base – Nipomo relies on the County for services and does not currently generate enough sales, property, or transient occupancy tax to sustain a city government
2. High cost of staffing and services – A city would need to cover all costs for police, fire, planning, public works, and administration
3. Existing special districts – Coordination with NCSD and other agencies would be required and could create complications
4. LAFCO requirements – A Comprehensive Fiscal Analysis and Environmental Review are needed, and incorporation must be shown to be financially viable
5. Limited public support for new taxes – Incorporation would likely require tax increases that may not be supported by voters

Statement from Supervisor Jimmy Paulding on Incorporation:
“Efforts to incorporate Nipomo as a city face significant challenges, including an insufficient local revenue base, high costs for services and staffing, and overlapping responsibilities with existing special districts. Incorporation would likely require new taxes to cover startup and ongoing expenses—something past fiscal analyses have shown to be a tough sell, both financially and politically.

That said, if incorporation is something the community wants to explore as a next step in the Nipomo Community Plan update process, I’m fully committed to supporting that conversation and evaluating it thoroughly. Survey results show that 43% of respondents believe Nipomo should explore cityhood, while 34% are unsure and 23% are opposed—indicating there is real interest in continuing the discussion.

The last incorporation study commissioned by the Nipomo Community Services District was completed in 2005, over 20 years ago. It may be appropriate for the NSCD to consider commissioning another study in tandem with or as a next step to the community plan update.”

Q: Do Nipomo property taxes go to nearby cities?

No. A common misconception is that property taxes paid by Nipomo residents are sent to nearby cities like San Luis Obispo, Arroyo Grande, or Grover Beach. That is not the case.
If you live in Nipomo (an unincorporated area), your property taxes are distributed among agencies that directly serve your community, including:

• San Luis Obispo County government
• Nipomo Community Services District (if applicable)
• Lucia Mar Unified School District
• County Sheriff and County Fire
• County-maintained roads, parks, and libraries

The “7% to cities” figure sometimes cited refers only to property tax collected within incorporated city limits—not in Nipomo.

Q: Why does it feel like Nipomo doesn’t get its fair share of services?

Many residents feel that despite paying taxes locally, Nipomo hasn’t received sufficient investment in infrastructure and public amenities. That concern is valid. As your Supervisor, I am actively advocating for:

• Updates to Public Facilities Fees (PFF)
• Greater capital improvement funding
• Better planning to ensure Nipomo receives fair reinvestment of locally generated revenue

Q: Which projects may be considered for funding under the updated PFFP?

The draft Public Facilities Financing Plan (PFFP) may propose funding for projects like:

• Jim Miller Park in Olde Towne Nipomo
• A Community Center at Nipomo Community Park or elsewhere
• Bike and pedestrian connectivity (sidewalks, Class I/II bike lanes)
• Road congestion relief, including Tefft St and Orchard improvements
• Future public safety infrastructure, including a potential west-side fire station

Note: The Nipomo Sheriff's Substation would not be included in the PFFP project list because it has already been fully funded—thanks to a $12 million allocation from the County Board of Supervisors in 2025. This milestone project was identified as a critical need more than 30 years ago and is now moving forward independently of the PFFP.

Q: How will the County pay for all of these projects?

A mix of funding sources may be used:

• Development impact fees (parks, traffic, Quimby Act, etc.)
• State and federal grants (e.g., ATP, SB1, CDBG)
• Bond financing (GO Bonds or COPs, subject to voter or Board approval)
• One-time County or State funds (e.g., General Fund)
• Developer agreements and community partnerships
• County Service Areas (CSAs) or Zones of Benefit (special localized assessments)

Q: Will my property taxes go up because of this plan?

Not automatically. Most funding comes from developer-paid impact fees or grants. However, if a bond or special tax is proposed (e.g., for a new fire station or major roadwork), it would require voter approval before it impacts your property tax bill.

Q: What’s the difference between developer impact fees and general taxes?

• Developer impact fees are one-time charges paid by builders when new homes are constructed. These fees help fund parks, roads, and services for new residents. It’s important to note that developer impact fees can’t be used to pay for preexisting needs in the community—they need to go toward needs that have some nexus to the impacts of the new development. 
• General taxes (like sales or property taxes) are paid by everyone and require public approval to increase. The PFFP may rely more on developer fees and grants so existing residents aren’t unfairly burdened.

Q: How are developer impact fees calculated?

A “nexus study” determines how much new development should contribute to infrastructure needs. It calculates a fair share based on population growth, project costs, and level of service. An updated nexus study for Nipomo may be a part of this PFFP update.

Q: Why is the fee structure being updated now?

The fee structure needs regular updates to reflect current conditions. With significant new development happening in Nipomo, the existing fees may no longer accurately cover the costs of building the public facilities and infrastructure needed to support future growth. This update ensures that the community is better prepared and that new development pays its fair share moving forward. 

Q: Can impact fees collected in Nipomo be used elsewhere in the County?

Under the updated plan, one of the goals could be to ensure developer impact fees collected in Nipomo stay in Nipomo as a way to stop the historic outflow of local funds to other districts and ensure local dollars are reinvested into local priorities.

Q: What is a County Service Area (CSA) or Zone of Benefit (ZOB), and how might it apply in Nipomo?

A CSA/ZOB allows a specific area (like a neighborhood or corridor) to fund improvements locally through special assessments or taxes, only within that zone. For example, W. Tefft Street could form a ZOB to fund sidewalks, landscaping, or lighting—paid only by the parcels that benefit.

Q: What role do grants play in the PFFP?

Grants are essential to reduce local costs. The County is generally actively targeting funding from:

• Active Transportation Program (ATP) – for bike and pedestrian safety
• SB1 / Local Streets & Roads – for traffic and road projects
• CDBG – for parks and community facilities

These often require “matching funds,” which the PFFP helps provide.

Q: What if grant funding doesn’t come through?

The PFFP will be designed to layer multiple funding sources. If grants aren’t secured, the County can:

• Use developer fee revenue
• Reallocate General Fund or Capital Improvement Plan dollars
• Phase projects more gradually
• Seek public support for bonds or local funding (with a public vote)

Q: Will this plan help address traffic on key corridors?

Yes. The PFFP will target strategic investments at high-traffic intersections and corridors. Improvements could include, among other projects:

• Intersection operational improvements
• Turn lane additions
• Street widenings, including sidewalks and bike lanes
• New traffic signals and roundabouts

Q: What public safety improvements are included in the PFFP?

While the Sheriff’s Substation is already funded, the PFFP may support:

• Implementation of the Fire Department Strategic Plan, including:
  • Three-person fire engines at Station 20 (already achieved)
  • Expansion to Station 22 (which may be handled through the normal budget process)
  • A new west-side fire station, included in long-term capital plans

These efforts ensure public safety keeps pace with growth.

Q: How can I stay involved and informed?

Community engagement is key to shaping Nipomo’s future. You can:

• Attend public workshops and hearings related to the Nipomo Community Plan Update and PFFP
• Sign up for email updates on the Nipomo Community Plan Update at slocounty.ca.gov/NipomoUpdate
• Engage with County Planning & Building and Public Works during project outreach
• Join or follow the South County Advisory Council (SCAC):

The SCAC is a volunteer group that provides community input on planning projects in the greater Nipomo area. They also help share information about important issues affecting the community. The SCAC meets at 6:30 p.m. on the 4th Monday of each month at the Dana Adobe (671 S Oakglen Ave).

Q: When will these improvements start?

Some projects (like fire staffing and substation planning) are already in progress. Others will roll out as funding becomes available. A hypothetical timeline might look like:

• 2025–2026: Finalize PFFP update and fee ordinance
• 2026–2027: Begin infrastructure construction, parks design, and grant implementation
• 2028+: Major construction projects (Community Center, new trails, west fire station, etc.)

Caveat: We will know more once the PFFP consultant is retained and the plan is developed.

Q: What is the status of the Southland Interchange project in Nipomo?

The Southland Interchange has been a long-identified infrastructure need in Nipomo. It was first included in the 1994 Nipomo Community Plan, which called for two new interchanges to alleviate congestion at the Tefft Street/Highway 101 interchange — one at Willow Road (which has since been built) and another at Southland Street, which remains unconstructed.

The need for the Southland interchange has only grown. The Tefft interchange is currently experiencing degraded traffic conditions, and over 2,300 new housing units are projected for Nipomo in the next decade — including the 1,470-home Dana Reserve project. These developments will significantly increase traffic volumes and create an even more urgent need for alternate east-west circulation options in the community.

To help move the project forward, I have been working with SLOCOG (San Luis Obispo Council of Governments) and Caltrans to discuss whether it would be appropriate to begin a Project Initiation Document (PID) — a necessary first step in the Caltrans project development process.

Recognizing the high cost of full interchanges and the time it takes to fund them, I’ve also asked Caltrans to consider phasing the project. This could mean starting with a southbound offramp or interim "hook ramps" to help divert traffic off of Highway 101 and reduce congestion at Tefft. These types of solutions were even referenced in the original 1994 Plan as potential interim steps.

What’s Next?

The timing is right to advance this conversation:

• The Nipomo Community Plan Update is now underway, and traffic circulation is a top issue identified by residents.
• The County is also updating the South County Circulation Study, which will provide the data and technical foundation needed to support future infrastructure decisions.
• Together, these efforts create a strong platform for collaboration and prioritization.

Building a highway interchange is a lengthy and expensive process that takes many years. Even though the project was identified in 1994 as a need, unfortunately little progress has been made over the past 30 years. 

As your Supervisor, I am committed to using the momentum of these current planning efforts to push for the Southland Interchange to become a formal priority for both SLOCOG and Caltrans. It’s long overdue, and I will continue working to ensure this project gets the attention—and investment—it deserves.

For ongoing updates, upcoming workshop dates, and more information, please visit: slocounty.ca.gov/NipomoUpdate