Arroyo Grande City Council rejects appeal, approves 92-unit residential development
April 16, 2026

By KAREN VELIE
The Arroyo Grande City Council on Tuesday voted 3-1 to reject an appeal of a proposed 92-unit residential development. Councilwoman Aileen Loe voted for the appeal and Mayor Caren Ray Russom recused herself.
The project, Creekside Junction, includes two four-story residential buildings with 20 studios, 58 one bedroom and 14 two-bedroom units. The 1.81-acre property is located at 1271 and 1281 James Way near Curl Fitness.
Pismo Medical Properties, Arroyo Grande Partners and Ray B Bunnell appealed the project on Jan. 30. Their primary argument was that the parking is inadequate.
In January, the Arroyo Grande Planning Commission approved the applicant’s request to lower the number of required parking spaces from 99 to 98.
During the city council meeting on Tuesday, city staff said that Creekside Junction had requested additional parking concessions. The latest request was to lower the number of required parking spaces from 99 to 31.






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