Could a popular SLO County golf course be turned into housing?
The Laguna Lake Municipal Golf Course is one of San Luis Obispo's largest green spaces and a popular recreation spot for many golfers. But could it be better used as affordable housing?
The San Luis Obispo City Council will consider this question during a study session this week on the golf course's viability. The council will hear a staff presentation on operations at the city-owned Laguna Lake golf course during its regular meeting Tuesday evening.
According to a staff report, city staff last year were asked to bring back more information on the operations and financial analysis of the Laguna Lake Golf Course programs and service offerings, including estimates on two major capital improvement projects.
The 26-acre, 10-hole golf course is located at 11175 Los Osos Valley Road. The city has owned the property since 1978 and operated it as a city facility since the 1980s. The golf course struggled amid the COVID-19 pandemic and storm-related closures in 2023, though use in 2024-25 was up from pre-shutdown numbers.
Expenses continued to outpace revenues, with the golf course bringing in more than $375,000 in 2024-25, but costing roughly $827,100 to operate. City staff noted that though expenses are higher than revenues, the golf course has still managed to continuously operate within its annual budget.
There are at least two major capital improvement projects slated for the golf course in the future: a $600,000 replacement of a bridge spanning the creek and a $250,000 renovation of the long-closed Pro Shop that was damaged by flooding in 2021. Both projects have been on hold until the City Council provides direction on timing and scope.
In 2025, staff were directed to present potential reuses for the full 29-acre site, including what it would take to transform the golf course into affordable housing. It wouldn't be an easy road.
According to the staff report, the city would have to rezone the property, bolster its stormwater detention facilities and face numerous hurdles like its fire hazard severity zoning and a deed restriction. It would also likely be a costly endeavor for any affordable housing developer and require the city to go through the lengthy and complex Surplus Land Act process to transfer ownership of the property.
It's unclear exactly how large a housing development at the Laguna Lake property could be, though the city did offer a theoretical example based on high-density zoning regulations. Under those rules, if 20 acres of the site were developed, the property could theoretically be home to roughly 480 two-bedroom dwelling units.
Housing isn't the only potential reuse for the golf course. The staff report also explored options for the city to decommission the golf course and instead use the property as a public park. That plan would allow the current restrooms, parking lot, barbecue and seating area, and maintenance shop to remain, though it would also require some potential upgrades for accessibility and safety.
City staff noted both options would involve a major work plan effort with participation from multiple city departments.
The potential reuse of the golf course has already met with significant pushback from local golfers and nearby homeowners who highlighted that Laguna Lake's facility is one of the most accessible and low-cost in the area. Ahead of Tuesday's meeting, more than 115 people have written in to the City Council about the Laguna Lake study session, with the majority expressing support for keeping the course open.
Terri Benson, a PGA golf professional who teaches at the golf course and runs its First Tee program for youths, noted the facility has been a second home and a lifeline for many children and families in our community. Benson wrote in a letter to the council, 'I understand the need for affordable housing, and I respect the city's commitment to that goal. I simply ask that you also consider what would be lost if this course is taken away.'
San Luis Obispo resident and retired pediatrician Jim Coryell similarly urged the City Council to not close the course. Coryell wrote in a letter to the council, 'If funding is an issue, I would gladly pay twice the current green fees. I love playing there, and I believe it is a great asset to the city.' The letter concluded: 'Please, please do not close this course.'
The San Luis Obispo City Council will hold a study session on the Laguna Lake Municipal Golf Course during its regular meeting Tuesday at 5 p.m. The meeting will take place in Council Chambers at City Hall, 990 Palm St., San Luis Obispo. It will also be livestreamed on the city’s Youtube page.
Kaytlyn Leslie writes about business and development for The San Luis Obispo Tribune. Hailing from Nipomo, she also covers city governments and happenings in San Luis Obispo. She joined The Tribune in 2013 after graduating from Cal Poly with her journalism degree.
