Is it too late to save downtown?

It’s a refrain that feels immediately familiar to most San Luis Obispo residents today — especially after a recent SFGate article reported a number of locals saying that following a spate of closures and government missteps, the once-economic-heart of the city was on the brink of collapse.

To hear from city officials and downtown leaders, however, the reports of downtown’s death have been greatly exaggerated.

“When I try to take my mayor hat off, and I just walk around and go to dinner with a friend or go do something, sometimes it’s hustling and bustling, other times it’s a little slow,” Mayor Erica Stewart told The Tribune in a recent interview. “It just depends. I definitely would say — I’ve been here since 1990 with a few years away in there — and yeah, it’s changed a lot.

“Of course, what doesn’t in 30-plus years?” she added.

As part of its Reality Check series, The Tribune looked into the health of downtown San Luis Obispo and whether the city’s “beating heart” is truly at a crisis point.

What we found were omnipresent concerns about parking, the economy and who downtown is for that consistently seem to threaten the beloved city core, but also how local business leaders and city officials are hopeful for a long future downtown — as long as they can find ways to work together.

Pedestrians cross Chorro Street at Higuera Street in downtown San Luis Obispo on Oct. 27, 2025.

Downtown complaints of parking, closures aren’t new

Let’s go back to that first phrase: “Is it too late to save downtown?”

It’s the headline from an article talking about the issues faced by San Luis Obispo’s downtown in the face of economic threats and parking woes.

In it, local business owners say the downtown is at risk of disappearing — as so many others throughout the country have — replaced by easy-to-access shopping centers where parking is free and there are no unwieldy traffic patterns making it difficult to reach shops. The article, part of a five-part series on the topic, talks about recent major vacancies of large anchor businesses, troubles keeping the area looking nice and the lengthy wait for a major project meant to revitalize the region.

Sounds familiar, right? Except the article ran on Jan. 2, 1967.

Downtown Monterey Street in San Luis Obispo, JP Andrews building at right in November 1959.

In 2025, many of the complaints highlighted in that nearly 60-year-old series continue to exist.

On social media apps like Nextdoor, local users routinely point to the cost of parking, closures of businesses, difficulties with unhoused individuals and bike lanes as reasons they “never go downtown” anymore.

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Erica Hamilton, owner of the downtown boutique Blackwater, said she hears often from locals who refuse to go downtown.

“I hear it all the time, when I let people know that I own a business downtown, they’re like ‘Oh, I don’t come downtown anymore,’” Hamilton told The Tribune. “And it’s almost like they are kind of bragging about it.”

That pervasive attitude translates to “way, way, way less locals” frequenting her shop on weekdays, Hamilton said, putting the family-owned business — and other similar establishments throughout downtown — at risk.

“I would say the health is at kind of a tipping point,” she said. “There’s still so much good downtown, it still has the charm and creative businesses and there’s community downtown, but there’s just been a huge decrease in the locals actually coming out to see that.”

Gaia’s Gallery, a jewelry, crystal and stone shop in downtown San Luis Obispo, has closed with its last day on Sept. 22, 2025.

Business owner says SLO downtown needs locals to return

The role locals — and their absence — play in the downtown is a sticking point for many business owners in the area.

“The main thing we need to do is bring locals back,” Steven Wick, owner of the recently rebranded Zen Shak, formerly Hemp Shak, told The Tribune in an interview Oct. 17.

Wick, something of a local celebrity who seems to know a friendly face everywhere he goes, has been one of several business owners vocal about concerns with the direction downtown.

As a friend of many owners in the area, Wick is often on hand when a longtime downtown spot closes.

That was the case at Gaia’s Gallery and Avanti, two of several high-profile downtown business closures in September, as well as the Secret Garden, which moved after 20 years in downtown SLO to a new location elsewhere in the city in 2024.

Those sorts of closures “hit close to home” in the tight-knit community, Wick said.

“Just all these people, they’re near and dear to my heart,” he said. “And then there’s these degrees of separation, and we’re all living our lives and running our businesses, and we don’t realize that, ‘Oh, my friend across the street is struggling because she only puts out what she wants us to see.’”

A struggle of perception also seems to be what continues to plague the downtown corridor.

As he sits at a patio table outside Scout Coffee on a sunny fall day — “I go to Scout every day,” he says. “I know them all by name,” — Wick motions to a busy Garden Street filled with people enjoying the warm weather, parking their bikes nearby and strolling along the enlarged sidewalks.

“It’s very much a fun little hub community that we have here,” he said. “And locals are kind of missing out because they had one bad experience.”

That bad experience? The city’s now somewhat infamous parking miscalculation.

Critics of downtown often cite construction and parking issues in San Luis Obispo, seen here on Oct. 27, 2025.

Parking confusion continues to impact downtown SLO

In the summer of 2023, the city implemented a perfect storm of parking changes, including introducing gateless technology at its 842 Palm St. structure, new payment apps and — perhaps most upsetting to many — higher rates that nearly doubled the cost to park across the downtown core.

That summer, rates increased to $4 per in hour in some places, and $3 per hour in the structure with a daily max of $12 to help pay for the new Cultural Arts District parking structure.

The fallout was swift.

Signs declaring that parking was hurting the downtown decorated business windows, including one at Wick’s own shop.

Business owners in downtown SLO openly opposed the parking rates that practically doubled in 2023. They got some relief in July 2024, when lower rates went into effect.

“Parking was the turning point,” Wick said. “It wasn’t about a few dollars. It was the fact that people didn’t want to pay more for parking than their coffee.”

The flurry of complaints culminated in a pair of tense meetings in which city officials reversed the rate increases, and apologized for the confusion caused by too many changes, too fast.

“I really think it’s important — as somebody in the audience earlier said — to say, ‘We’re sorry,’” Councilmember Emily Francis said at the May 14, 2024, meeting. “We hear the pain and the frustration, and I think it’s important for us to acknowledge that and also say that we’re ready to make some changes here tonight.”

In the year since that apology, the city said it has taken steps to address its downtown parking situation.

On-street rates dropped to $2.75 per hour in the downtown core, while the cost to park in the structure dropped to $2 per hour with a daily max of $8. The long-held free hour of parking in structures, however, was still nixed to help the city make up some of the loss in revenue.

The gateless tech at the Palm Street structure was another victim of the reversal, with a hybrid gated entry taking its place in March. The city also moved to a sole mobile payment app, PayByPhone, rather than several.

Just last month it started replacing its existing on-street parking stations with easier-to-use touchscreen kiosks that take multiple forms of payment and send text message receipts with the ability to extend time remotely.

“I think one of the takeaways from the parking conversation is that, you know, we listened to the feedback and made changes that the community desired,” deputy city manager Greg Hermann told The Tribune in October.

‘No sense of urgency to the downtown,’ art gallery owner says

Despite that, several business owners told The Tribune they felt the public has continued to hold onto the perception that parking downtown is difficult and costly — to the detriment of the businesses.

“I go to the dog park and I’m talking to a group of locals and they’re like, ‘We’re locals, we don’t go downtown anymore,’” Wick said. “But why? ‘Oh well, the parking.’ You know they lowered the rate, right? We fought them for a year and they lowered the rate. ‘I still won’t go.’”

“So it’s just very much like this act of defiance to be a local and not want to go to the heart and soul of your city,” he said.

Business owners like Ralph Gorton, who has been a constant presence in downtown SLO for decades, have seen the ups and downs of the parking situation.

The owner of Just Looking Gallery has been in his 740 Higuera St. spot for 42 years. In that time, he said the art gallery’s formula hasn’t changed, but the downtown has.

Just Looking Gallery has lost 45% of its gross income in the past year, Gorton said, placing the blame partly on the parking situation.

“Everywhere else is flourishing, and San Luis Obispo has lost the goose that laid the golden egg, and we let it slip away, and we got greedy post COVID with our parking. It’s insulting,” he told The Tribune. “The parking scares everyone away. There’s no sense of urgency to the downtown.”

Gorton’s daughter McKinley is set to take ownership of Just Looking in January, but he has doubts about the gallery continuing steadfast in its business with the current rate of losses.

“If we continue to track this way, we’ll be out of business,” he said. “I’m not going to spend any of my hard-earned money to try to save something or salvage something that’s not worth salvaging.”

Gorton said he feels like the city is not contributing to make the downtown better — and he does not feel the need to stick around if things remain the same.

It’s a classic chicken-and-egg situation.

“I’m 70 and on the way out, and it worked for me for a long time, but I earned it and participated in it and helped finance it,” he said. “So I get to reap the rewards, as other businesses do.

“Effort is a weapon, and I don’t see any effort any longer from the community to make downtown as viable as it once was. That’s it in a nutshell.“

Downtown SLO vacancy rate, openings and closings data

Another oft-heard reason for a person saying the downtown is on its last legs are business closures.

In recent years, a number of high-profile businesses have shut their doors in the area, several leaving behind huge, difficult-to-fill spaces.

Some, like the former Beverly’s Fabric & Crafts and Ross spaces, find new life as young businesses like Thrifty Beaches move in.

Others — like the former Charles Shoes at 867 Higuera St., Palazzo Guiseppe at 1010 Court St. and California Pizza Kitchen at 876 Marsh St. — remain vacant even after several years.

Data provided to The Tribune by Hermann shows the average downtown vacancy rate — the percentage of store-level commercial spaces that are unoccupied — has stayed mostly stable since 2022, fluctuating between a low of 8.23% in 2023 to a high of 9.03% in 2024.

The year-to-date average vacancy rate for downtown SLO in 2025 was 8.29% as of mid-October.

Because of the comings and goings of business, the vacancy rate can vary significantly even month-to-month, however.

Since January 2023, the monthly downtown vacancy rate has been mostly between 8% and 9%, though in recent months it seemed to begin trending downward, reaching a low of 7.13% in July, according to data shared by Downtown SLO association CEO LeBren Harris.

The rate jumped significantly between July and September, however, hitting a peak of 9.5%. October’s monthly rate was not yet available.

Harris said the downtown’s latest rate was less than half the average national vacancy rate of about 20%.

“While recent factors have led to challenges for downtown experiences across the country, I’m proud of how Downtown SLO has continued to stay ahead of minimizing these impacts,” Harris said in an emailed statement. “... The trends in downtown San Luis Obispo are consistent with what most downtowns are experiencing today, but the unique sense of pride and support within our community has allowed our businesses to minimize the negative outcome of those current trends.”

Downtown SLO vacancy rate by month (January 2023 - September 2025)

Meanwhile, more businesses continue to open in downtown SLO than close, the city says.

According to Hermann, since 2021, an average of 2.6 new businesses have opened each month, compared to 1.7 that have closed. So far this year, 21 businesses have opened or were in the process of opening, he said, while 14 have closed.

Sales tax revenue from the downtown area is also increasing, he said.

According to Hermann, revenue from the second quarter ending in June — the most recent sales tax data available for this year —was 6.1% above the same quarter in 2024.

The downtown area had the second-highest growth rate of all business areas within the city during that period, he added. The highest growth was for the airport area. Hermann did not provide exact sales tax revenue numbers.

Taking these into account, SLO’s downtown appears to be performing comparably, if not better, than other similar university-adjacent hubs throughout the state such as Santa Barbara, Santa Cruz, Palo Alto and Berkeley, he said.

Hermann did caution that the data only tells a piece of the story, though it can be a “helpful indicator of overall economic activity.”

“Those are good indicators that are not going to match up with everyone’s business experience in our downtown,” he said. “So that is part of the reason that we work closely with Downtown SLO to be able to make sure that we’re hearing concerns and taking action where we can to be able to address those.”

People line up to get food at the F. McLintocks barbecue at Farmers Market in San Luis Obispo.

What does Downtown SLO business organization say about health?

Downtown SLO, formerly the San Luis Obispo Downtown Association, is a nonprofit founded to help foster a vibrant downtown.

The organization’s founding coincided with the creation of the Downtown Business Improvement Area in 1975. An open letter published in The Telegram-Tribune in October 1979 said the BIA came about thanks to an effort by “civic-minded business firms in downtown.”

“Downtown San Luis Obispo is not only the merchandising, governmental, cultural and service hub of the Central Coast, but it is also the framework around which many a Central Coast resident builds his life,” the letter read. “Keeping Downtown San Luis Obispo strong and vigorous is not merely the responsibility of a few but of many who have invested every part that goes to make up the downtown.”

Today, businesses inside the 24 blocks that comprise the BIA pay automatic assessments in addition to their business license fees.

That money then is used by the Downtown SLO association in its partnership with the city, producing a slate of programming and events “designed to bring locals and visitors downtown,” according to a member resource guide published on the organization’s website. That includes Thursday night Farmers Market and events like Concerts in the Plaza and even the recent Sidewalk Sale.

“We have a strong partnership with the city of San Luis Obispo, and that collaboration has been vital in navigating through any and every challenge our downtown business face,” Harris told The Tribune. “There is always room for improvement from every involved party. However, the only way we will make progress as a community is through continued communication and responsiveness from all sides.”

That’s not always easy.

Harris noted that downtown businesses are currently facing a slew of economic pressures like tariffs and consumer spending that cause concern among anxious owners whose entire livelihoods rest downtown.

“Our business community is passionate and deeply invested in the future of downtown,” she said. “The constant shifts in the business landscape and business closures are most certainly difficult for business owners and the community.”

But that doesn’t mean the area is dying, Harris clarified.

“... New businesses continue choosing downtown as the place to invest, create and connect,” she said. “That’s not death, that is revitalization.”

“We are embracing new perspectives on what success looks like in a changing economy,” she continued. “What remains unchanged is our community’s commitment to downtown SLO. With passionate business owners, engaged residents and strong partnerships, downtown SLO is very much alive and continuing to grow.”

Moondoggies Beach Club on Monterey St. in San Luis Obispo, Nov. 27, 2020.

Surf shop owner says downtown isn’t in danger — it’s just ‘soft’ economy

Other business owners expressed similar sentiments.

“My take on downtown is it’s very, very vibrant. It’s very strong,” Moondoggies owner Randy Adler told The Tribune in October.

The problem?

“The economy is very soft right now,” he said.

It’s a cycle Adler said he has seen plenty of times in the nearly 40 years the surf boutique has been open in SLO, going from stronger economies to ones that are “kind of on a downturn.” And it’s not just a local issue — it’s global.

“We had a huge surge in sales after COVID,” he said. “Then we got out of COVID, and it’s just kind of, you know, stepping back into a little bit more of a normal business cycle.”

In short, Adler said he’s “not alarmed” by the state of downtown, especially as long as it continues to draw out-of-town visitors and their wallets.

“I think downtown is still really a special place for tourism, and tourism drives a lot of what goes on in retail downtown,” he said. “So I think that as long as we remain a very viable tourist destination, which I don’t see that collapsing anytime soon, I think it’s just a normal economic downturn.”

Adler said he feels SLO’s downtown is also more “economically viable” than some other tourist hubs throughout the county like downtown Pismo Beach, where he also has a Moondoggies shop.

“You’re not going to find a Gap or a Pottery Barn or Lululemon,” he said. “They’re not in Pismo and they’re not going to be in Pismo. So when you have a holiday sale, people are going to San Luis to shop. They’re not going to Pismo.”

That doesn’t mean the area isn’t without its challenges, he said.

According to Adler, an ongoing battle downtown is always trying to keep it clean and safe and “keep the appearance looking as good as it’s been,” as well as reminding people that some business turnover is natural.

“It’s like life,” he said. “There’s just a little bit of attrition. Not everybody is going to survive. And that’s kind of a tough thing.”

New parking garage under construction at the corner of Nipomo and Monterey Streets in downtown San Luis Obispo on Oct. 27, 2025.

New projects, major investments in downtown SLO

The downtown has seen a flurry of investment in recent months — from transforming the long-vacant Sports Authority space at 1144 into Cal Poly’s new innovation hub to the ongoing construction to build the Cultural Arts District parking structure and SLO Rep’s new theater space — also signaling the opposite of a region on its last legs.

Earlier this year, the Downtown Centre Cinema began a major renovation of the Marsh Street movie theater, promising newly renovated seats, bigger screens and an upgraded sound system as it signed a 20-year lease on the property.

This came after a theater representative notably appeared before the City Council during its parking meetings in 2023 and 2024 to share that without changes, “Downtown Cinemas won’t be there in 2025.”

Therese Cron, vice president of West Coast leasing for Jamestown — which owns roughly 265,000 square feet in downtown — said the real estate company hasn’t seen a decrease in brand interest recently — it’s seen an increase.

The company has leased more than 100,000 square feet of new deals and renewals in the downtown area in the past 24 months, she said. It’s current retail vacancy rate is also only 6%, she said, with the company striving “to lease spaces before they are vacated.”

“We are optimistic about the future of downtown SLO and its ability to thrive,” she said in an emailed statement. “We believe the area is highly viable and well positioned for continued growth. “

The Network Mall in downtown San Luis Obispo is expected to be transformed into a new SLO Museum of Art.

Mariam Ohanyan, meanwhile, is another local business owner who has committed to the mythos of downtown.

Ohanyan, who runs the bridal shop Mareh Couture in The Network at 778 Higuera St., is moving her business into a larger space right across the street in the next few months.

“I can’t imagine being anywhere else,” Ohanyan told The Tribune in October. “I knew from the very beginning that my bridal store had to be right in the heart of downtown, and after three amazing years, I decided that it was time to grow and go into a bigger location that is still downtown.”

So when the opportunity came to lease the spot at 749 Higuera St., in what she said was actually the first bridal store downtown, Ohanyan jumped.

“Downtown has history, and its charm is in its history,” she said. “So me as a bridal store, I felt like it was right to move into that location where historically the bridal store always used to be.”

Ohanyan, whose client list stretches as far as New York, said she loves being a part of a close-knit business community in the heart of the city.

“I think there is much creativity and new energy coming into town — a lot of business owners who genuinely care about preserving what makes this place so special,” she said. “We all want the same thing, which is to see downtown thrive and be amazing.”

Speaking of new energy: Mareh Couture’s current home of The Network building is actually one of the three Higuera Street storefronts that are expected to be transformed into a brand-new, $20-million SLO Museum of Art in the coming years.

Talking with The Tribune about the bold renovation plan, SLOMA Board of Directors co-chair Cheryl Cuming said she was excited to be a part of a major downtown change.

“I think we all look to these spaces, and we see them, and we want them to become something, because we want the downtown to continue to be vibrant,” she said. “We all love the creek area. We want this connectivity of being able to come downtown and spend an entire evening here doing lots of different things, or a weekend or whatever. I love the idea that it just kind of feeds into all of that.”

Mee Heng Low on Palm Street has been serving up Chinese food in San Luis Obispo for nearly a century.

Noodle shop owner gets grant to restore historic sign

Meanwhile, as new investment flows into the area, the city’s economic development team has also been on the lookout for opportunities to help some existing downtown businesses.

For the beloved Chinatown restaurant Mee Heng Low, business is actually better compared to last year, manager and chef Russell Kwong told The Tribune in October.

“Obviously, we do get tourists, but locals are the life’s blood flow downtown,” he said.

The restaurant also got a helping hand from the city, when city business navigator McKenzie Taffe notified Kwong about a $50,000 grant that is renovating the business’ exterior neon sign and helping operations.

“I had spoken to her about struggling last year, and she was feeding me grants and stuff, and with the help of several people, we got it,” he said.

Mee Heng Low got the money, and is currently figuring out logistics to replace the neon tubing inside the iconic sign out front of the restaurant.

As for general feelings about the health of downtown businesses? Kwong said he thinks it’s all in the name of the game.

“I think there’s always going to be turnover of businesses,” he said. “I know firsthand, we’ve been here for 60 years now; we’ve had struggles, there have been really difficult times. At what point do you just keep forcing yourself to do it? I think a lot of people realize that it’s really tough to run a business and not worth it for everybody.”

The Downtown Centre Cinema began a major renovation of the Marsh Street movie theater in 2025, promising newly renovated seats, bigger screens and an upgraded sound system as it signed a 20-year lease on the property.

What does city say about downtown concerns?

For the city’s part, officials seem aware that despite positive data trends and obvious stakeholder passion about the area, there are downtown issues that need to be addressed.

Vice mayor Michelle Shoreman said she hears complaints about the downtown atmosphere, and tries to “meet their needs together” and “come up with solutions” as a cohesive unit.

One of the biggest recent complaints concerning downtown businesses was that delivery trucks that bring items to the businesses are often unable to deliver goods at certain times due to high traffic and the low-hanging tree canopy above Higuera Street. This leaves them parking in the middle of the street, often blocking traffic even further.

So the city went to work.

“The city has just recently completed some tree trimming near those loading zones to try and make it so the taller trucks can access those loading zones,” she told The Tribune.

Not every issue could be handled in such a manner though, she cautioned.

“There are only certain things that our downtown business owners and the city can control, and so we’re really trying to focus on the things we can control and that we can work together on,” she said.

Gabriel Grandado, left and Isreal (declined to give last name) put up construction sign at corner of Marsh and Broad Streets in downtown San Luis Obispo on Oct. 27, 2025.

Mayor Stewart meanwhile said parking as a whole continues to be a sticky issue, though the city is dedicated to continuing to work on it — even if it meant the loss of that one hour of free parking in structures.

“I’m not gonna lie, I missed the one hour, just-run-and-do-something for free parking,” she said. “But I really valued hearing from our business community that said, if we have to do one or the other, we’d rather lower the rates as a whole and skip the one hour. So we said, ‘OK. We hear you. I’m gonna do it.’”

She also noted that work is ongoing on another major downtown issue: cleanliness and safety.

To that end, the city is cleaning downtown more — you might notice the street sweepers more often, in fact — as well as responding to requests it gets in its Ask SLO app for maintenance of city property like fixing potholes or broken equipment, she said.

Stewart also said there are more community service officers deployed downtown and the city’s mobile crisis unit is ready to respond to help unhoused residents.

In all, she had a straightforward message for residents of the city:

“We’re here,” she said. “We’re open downtown. Downtown SLO is not dismal — it’s pretty lovely, and we’ll continue to work on it, activate it and help our businesses thrive.”

People walk past a mural at the Marsh Street parking garage in downtown San Luis Obispo in October 2025.

‘An energy worth saving’

So with all of that, is downtown San Luis Obispo dying?

On a recent Friday afternoon, high school students meander the streets, chattering as they stop into the new Brandy Melville or wait in line at Starbucks.

At Seeds, Cal Poly students and young professionals sit at outside benches working on their laptops as “Ain’t No Sunshine When She’s Gone” echoes down the Court Street walkway.

A couple walking a dog glance in the window of the old Ross building where Thrifty Beaches workers can be seen sorting clothing and inventory for the new shop expected to open in the space any day now. Just a few blocks away, in the papered-up window of the former Gaia’s Gallery, there’s a sign announcing a holiday pop-up in the space by neighboring boutique Len Collective.

Families push strollers, people walk past with shopping bags in their arms and every once in a while a bike rolls past — though usually not along the traffic-heavy Higuera Street where a large delivery vehicle can be seen in the middle lane with a worker rolling a cart to the sidewalk.

It’s clear on that Friday afternoon downtown SLO isn’t dead. It’s buzzingly alive.

But like any living thing, it needs continued nourishment to survive and thrive.

Some of that can come from the drive of downtown business leaders. After all, nearly all the business owners who spoke to The Tribune expressed a deep love for being a part of the city’s economic heart, and a hope for a long future.

“It’s just like having your family,” Ohanyan said. “We all will have ups and downs at some point, but when you care, you work through the hard times to preserve the beautiful times. And I’m hopeful.”

A large portion of downtown’s needed nourishment too has to come from locals — and the city by extension, business owners say.

Hamilton from Blackwater is one of several who have put together a downtown business map meant to highlight locally owned establishments and hopefully help encourage locals to come back downtown ahead of the holidays.

While making the map, Hamilton said she herself was surprised by the number of locally owned shops downtown — more than 85 — so she can understand why perhaps other residents don’t realize how much the area still has to offer.

“I grew up in San Luis Obispo. I’ve been here my whole life,” Hamilton said. “On weekends when I was still in high school, I loved to go to downtown SLO to go shopping, and I just think that pull needs to come back.”

A map won’t accomplish that alone, though. Both Hamilton and Wick said they felt the city still needs to be more proactive downtown to draw people back.

Whether that be a marketing campaign reminding people to shop local (the annual holiday campaign that gives out $25 gift cards for $100 spent is returning this year), more downtown-centric events or better responses to crime and cleanliness issues, both stressed they need the city to take seriously dedicated business owners’ concerns — or potentially face a future without them.

“There’s positives downtown,” Wick said as he sat at a bistro table on Garden Street. “Beautiful restaurants, passionate owners who care deeply about this community. So there’s an energy here that’s worth saving.”

“And if locals come back,” he added, “we’ll see that magic again.”

Bubble Gum Alley featuring a wrapper saying, “I love life,” in downtown San Luis Obispo on Oct. 27, 2025.