Plan to extend boundaries of Port San Luis Harbor District rejected
March 24, 2026
San Luis Obispo County Supervisor Dawn Ortiz-Legg
By KAREN VELIE
A plan to extend the boundaries of the Port San Luis Harbor District was rejected last week after multiple San Luis Obispo County residents voiced their opposition to having residents throughout the county pay for maintenance projects in Avila Beach.
Every five years, the San Luis Obispo Local Agency Formation Commission (LAFCO) conduct a review of harbor district services and an examination of its sphere of influence boundaries. During the process, staff determined the harbor district is likely to face financial deficits in the future because of maintenance and repair needs.
Commissioners from both LAFCO and the harbor district arrived at the plan to increase the size of the harbor district which could lead to increased tax revenue.
During the March 19 LAFCO meeting, six public speakers opposed the increase in harbor district boundaries and no one from the public spoke in favor of the proposal.
Some speakers were opposed to having all county residents pay for maintenance projects in Avila Beach while others voiced concerns the funding would be used for the industrialization of Port San Luis to support off-shore wind energy.
“It does not seem fair to support Avila Beach when other coastal communities also have financial issues,” said Sheri Hafer of Atascadero. “Are they planning to increase revenue to support an offshore wind energy operations and maintenance port? They need to answer that question.”
All but one of the LAFCO commissioners were opposed to increasing the harbor district’s boundaries. The commissioners questioned the claim that many residents throughout the county recreate in Avila Beach.
There was also concerns over LAFCO staff’s vetting of the harbor district’s financial woes and other possible funding sources.
The LAFCO commissioner in favor of the boundary change, SLO County Supervisor Dawn Ortiz-Legg, argued for the sphere of influence change and in favor of wind energy and the possible industrialization of Port San Luis.
“Avila was an industrial port initially,” Ortiz-Legg said. “For so many years, Port San Luis was investigating is there potential for revenue to be able to address our infrastructure needs and to be able to help us to be an electrified port or do all the modern things possible.”
In the end, the LAFCO Board voted unanimously to eliminate the plan to change the sphere of influence boundaries and bring back the review of harbor district services.






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