Five Cities Multimodal Transportation Network Enhancement Project
Improving safety, mobility, and congestion relief along Highway 101 in South San Luis Obispo County.
Project Description
This project will construct three components: a third part-time travel lane on southbound U.S. 101, a park-and-ride lot, and a segment of the Shell Beach Road shared-use path between Spyglass Drive and Avila Beach Drive.
The Five Cities Multimodal Transportation Network Enhancement Project is being implemented by Caltrans and the City of Pismo Beach and is sponsored by the San Luis Obispo Council of Governments (SLOCOG). The project is funded through a combination of SLOCOG discretionary funds and competitive state grant funds.
The project will construct an approximately 5-mile-long general-purpose travel lane on southbound U.S. 101, beginning just north of the Avila Beach Drive southbound off-ramp and ending south of the Price Street southbound on-ramp. The lane will be open 2p.m.-7p.m. daily and closed to traffic at all other times, providing additional capacity when it’s needed most. The park-and-ride lot will include electric vehicle charging stations, a new transit stop, and bike racks. The path extension will include many of the same design details as the existing path on Shell Beach between Terrace Avenue and Cliff Avenue and fill a key gap in the bicycle and pedestrian system north of the city to Avila Beach Drive, providing a safe, comfortable, and inviting environment for people to walk and cycle.
Purpose
The project will benefit the traveling public by decreasing travel times, improving the flow of freight and bus travel, facilitating a shift from single occupancy vehicle trip to bus, bike, carpool, or vanpool trips, and providing highway capacity to accommodate future travel demand.
- Reduces congestion on Highway 101
- Improve safety by reducing cut-through traffic on local roads
- Enhance travel reliability for residents and visitors
Need
Southbound US 101 operates near peak capacity during the daily commute hours and peak summer tourism travel months. Traffic congestion is worsened by vehicles entering and exiting the highway. To bypass this congestion, travelers will often reroute to Shell Beach Road, which exposes local roads to heavy traffic and increases safety risks for pedestrians and cyclists.
Current Project Phase and Closures
Stage 1: Price Street Retaining Wall and Pismo Preserve Overflow Parking Closure
Update May 5, 2026
Construction of the retaining wall along Price Street is in full swing. A concrete barrier protecting construction crews have been installed, will narrow the northbound bike lanes slightly. Bicyclists should continue exercising caution as they travel through the construction area. Two travel lanes on Price Street will remain open, but the public may encounter temporary flagging operations to accommodate materials delivery and other construction activities.
Update April 14, 2026
Construction of a retaining wall along Price Street began April 6th. The retaining wall is needed to widen southbound U.S. 101 to allow enough space for the part-time travel lane to be constructed. Work will take place Monday through Friday from 9 a.m. to 3 p.m. along Price Street from the downtown area north to Mattie Road. Motorists will encounter traffic control, flagging operations, and on-street parking restrictions Monday through Friday from 9 a.m. to 5 p.m. Access to businesses, hotels, and residential areas will remain open throughout construction.
The Pismo Preserver Overflow Parking Lot is closed and currently being utilized as a staging area before construction of the park and ride lot on the site begins later this year.
Work along Price Street and closure of the overflow lot is expected to last through 2026.
The City of Pismo Beach, Caltrans, and SLOCOG are monitoring impacts and providing timely information to residents, businesses, and visitors as the project progresses.
Traffic Delays Expected on Price Street in Pismo Beach as Construction Begins on the Five Cities Project
Media Alert 4-7-26
Traffic Delays Expected on Price Street in Pismo Beach as Construction Begins on the Five Cities Project
Pismo Beach, Calif. (April 7, 2026) Travelers are advised to expect delays on Price Street in the coming weeks as construction begins for the Five Cities Multimodal Transportation Enhancement Project.
Work will take place Monday through Friday from 9 a.m. to 3 p.m. along Price Street from the downtown area north to Mattie Road during the initial phase of construction.
Motorists may encounter traffic control and flagging operations in the project area. Travelers are encouraged to allow extra time and consider alternate routes.
The construction team will work to minimize delays and maintain traffic flow as much as possible. This phase of the construction project is expected to last through the end of the year.
Bicycle and pedestrian access will remain available during construction.
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Tourism & Local Business Information
The Pismo Beach Conference & Visitors Bureau has launched a travel information initiative to help visitors plan ahead and stay informed. The effort includes a dedicated webpage with project details, maps, and travel tips, along with ongoing updates through digital channels.
Hotels, restaurants, shops, and local businesses in Pismo Beach will remain open during construction. Access to the area will continue, though travel times may vary depending on traffic conditions.
Residents, commuters, and visitors are encouraged to check current traffic conditions and plan ahead, particularly during peak travel periods, weekends, holidays, and major events.
Learn More: Visiting Pismo Beach During the Highway 101 Enhancement Project
Funding Source
Construction Funding Sources
- SLOCOG: $13.4 million
- SB 1 Trade Corridors Enhancement Program: $64.9 million
- 2026 Community Project Funding (Carbajal): $2 million
Total Funding: $80.3 million
Construction Costs
- U.S. 101 & Park and Ride Lot Improvements: $71 million (fully funded)
- Shell Beach Path Extension: $16.7 million (underfunded)
Total Construction Cost $87.7 million
Project Background
Lead Agencies: SLOCOG and Caltrans
The Final Project Report and Environmental Impact Report can be found at the links below:
Questions? Contact SLOCOG Transportation Planner, Stephen Hanamaikai at [email protected].