A San Luis Obispo County judge has overturned the controversial ballot measure passed by voters countywide in 2006, which allowed Ernie Dalidio to develop his 131-acre ranch just south of San Luis Obispo.

Judge Roger Picquet ruled Thursday that Measure J “is not a proper subject for an initiative because the approval of the particular development project ... is an adjudicatory and not a pure legislative act.”

Measure J, or the Dalidio Ranch Initiative, appeared on the November 2006 ballot after Dalidio gathered enough signatures to get the measure placed on the ballot.

A Dalidio representative said Friday that they were “disappointed” with the judge's ruling but speculated that it might not make much difference in their plans.

When it was passed with a 65 percent majority vote, it amended the San Luis Obispo Area Plan by creating a new Dalidio Ranch land-use category and assigning allowable uses and development standards for the property, which is under county jurisdiction.

However, Picquet's ruling made it clear that the Dalidio Ranch Initiative exceeded what's permissible under state law and what citizens can do through a ballot initiative.

“The subject matter addressed in Measure J is outside the permissible scope of a local initiative,” Picquet wrote in his 13-page ruling. “The issue before this court is purely a question of law.”

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Picquet said Measure J wasn't within the allowable scope of an initiative because it went against the state's Aeronautics Act, which requires “implementation of land use planning and land use decisions with affected local agencies.”

The Dalidio Ranch is located within San Luis Obispo's airport land-use planning area.

Allowable uses under the initiative included: 530,000 square feet of interior commercial and retail space, 30,000 square feet of outdoor sales, two soccer fields, a farmers market, agricultural area, trails, a 150-room, four-story hotel, 198,000 square feet of offices, 60 residential units and a wastewater treatment facility and ponds.

“The Dalidio project is as specific as a development project can get,” Picquet wrote. “The policy, land uses,

construction types and conditions of approval are all in a single, integrated document ... with no further significant review by any regulatory or governmental body.”

After voters passed Measure J, two San Luis Obispo-based groups, including ECOSLO, challenged the approval in court, arguing the initiative violated state law and conflicted with the county's land-use policies.

“We're very pleased with the decision,” said ECOSLO Executive Director Morgan Rafferty. “ECOSLO joined the case because we wanted to see the law upheld. The initiative was clearly written to avoid CEQA, and we think any project should have to go through the normal planning process.”

Dalidio's attorney Michael Morris said his client was “obviously disappointed with the decision” but expects to see the project move forward and eventually be approved.

“We have to analyze the decision and decide what to do next,” Morris said, adding Dalidio's options include appealing Picquet's ruling or moving ahead with project approval at the county level.

Dalidio has submitted a subdivision map for the project with the county and has also started the environmental review process, Morris said.

“The biggest part (of the project) is the EIR,” he added. “In some respects, (the ruling) won't greatly change how we proceed to get the project approved.”

During the past 16 years, Dalidio has attempted to develop his property, which is surrounded by malls, car dealerships and residences, but has met with resistance almost every step of the way.

At one point, Dalidio's Marketplace project - a mostly commercial development - won approval from the San Luis Obispo City Council. However, a citizens' referendum in an April 2005 special city election overturned the council's approval, prompting him to go the initiative route.

April Charlton can be reached at 489-4206, Ext. 5016, or acharlton@santamariatimes.com.

February 2, 2008