The city of San Luis Obispo will issue $8.3 million in lease revenue bonds to secure the final funding needed to widen a busy interchange at the edge of town.
Plans have been in the works for more than a decade to expand the Highway 101/Los Osos Valley Road Interchange in San Luis Obispo. Traffic frequently backs up at the location, and the city is soon to break ground on a project that will widen Los Osos Valley Road to four lanes between South Higuera Street and the Calle Joaquin intersection.
The project will cost an estimated $33 million. The city has secured a $16 million state grant for the project, but has been struggling to raise enough funding to finalize plans.
Following approval from the city council on Tuesday, city staff will now use a downtown parking structure and two fire stations to secure the lease revenue bonds.
Finance Director Wayne Padilla says the bond revenue will provide the city with the final funding needed for the project. Other funding will come from impact fees and additional assessments paid by businesses, like Costco, Home Depot and Target, which operate in the area.
