Could San Luis Obispo lose ownership of Canet Adobe?

February 24, 2025

By KAREN VELIE

The City of San Luis Obispo plans to build a tiny home village for low-income people at the site of the historical Canet Adobe. The lofty goal raises a host of questions that could result in legal action against the city and the loss of the property.

Is the city violating an agreement to utilize the property for parks and recreational services? Has the city failed to properly maintain the property? Because of its alleged violations, could the previous owner’s heirs take the property back?

More than 40 years ago, Mary Gail Black donated 466 Dana Street to the city with the requirement the city maintain the property for park and recreational services. However, if the city were to renege on its word, Black’s heirs have a right to take ownership of the property, according to a July 6, 1989 grant deed.

The Canet Adobe, one of SLO County’s oldest structures

Located on Dana Street alongside Stenner Creek, the Canet Adobe, also known as the Rosa Butron de Canet Adobe, was built circa 1845. It is one of the oldest structures in San Luis Obispo County.

Without a local newspaper, community members would nail legal notices on a wall at the Canet Adobe in the 1850s and the early 1860s.

In the 1920s, Black and Midred Waterman moved into the Canet Adobe. At that time, Black worked as a reporter for the The San Luis Obispo Daily Telegram.

The couple lived together in the adobe until Waterman passed away in 1969.

In 1988, Black offered to bequeath the property to the City of San Luis Obispo with multiple strings attached. In addition to maintaining the property for parks and recreational services, Black required the city fix the roof, perform biweekly gardening and tree trimming services, pay the taxes, pay the utilities, pay for insurance and allow her to live undisturbed at the property until her death.

She also required the park’s name to include Waterman in honor of her former partner.

Black passed away on July 30, 1989 at 91 years old. The city then boarded up the adobe and primarily ignored the property.

San Luis Obispo seeks help restoring and maintaining the Canet Adobe property

More than 30 years after taking ownership of 466 Dana Street, in 2020, the city issued a  solicitation “for community partners that may be interested in working with the city towards restoration, adaptive reuse, and long-term stewardship of the Rosa Butron de Canet Adobe.”

Smart Share Housing Solutions proposed placing 20 tiny homes, ranging in size from 220 to 264 square feet, on the property to serve low and very low income people. The city accepted the offer.

In an attempt to comply with Black’s requirements, the city plans to provide public access hours in which community members can view the historic adobe while naming the low-income housing project Waterman Village.

Even so, neighbors, property owners and descendants of both Black and Waterman argue Black donated the property to be used solely for park and recreation uses.

Aware of the 1988 SLO City Council resolution that 466 Dana would be reserved for park and recreational use, Steve Barasch bought a neighboring property.

“I bought the property on the assurance the neighboring property would become a public park,” Barasch said. “Public trust in the city has been shattered.”

On Dec. 17, 2024, the San Luis Obispo Property and Business Owners Association, Barasch, another neighboring property owner, the member of a local group, and a descendant of Waterman and a descendant of Black appealed the Waterman Village project.

“There is a restrictive covenant in the original deed requiring the 466 Dana Street property to be used solely as a park or for recreational uses,” according to the appeal. Any other use, “exceeds the authorized powers of a city and therefore cannot be enforced in any court.”

If the city fails to abide by the “covenants and conditions” in the grant deed, it forfeits title to the property, at which time it would revert to the previous owner’s descendants, according to the grant deed.

Five of Black and Waterman’s descendants have already asked that city to return the property.

The San Luis Obispo City Council will hold a hearing on the Waterman Village appeal at 5:30 p.m. on March 4.

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