Rancher-developer Ernie Dalidio has won a critical court victory in his drive to develop the San Luis Obispo Marketplace on a 131-acre site along Highway 101.

Reversing a lower court decision, California’s 2nd District Court of Appeals on Aug. 4 reinstated the results of Measure J, a ballot measure that won approval of county voters in 2006.

Measure J supported the Dalidio project, which has been stymied for years by opposition from environmental and no-growth groups. A three-judge panel of the appellate court agreed that the ballot measure met the necessary requirements under California law and that the project’s proximity to the San Luis Obispo County Regional Airport imposed new burdens on the developer that supersede the language of Measure J as it was written.

Business groups have hailed the Dalidio project as necessary for the future growth of San Luis Obispo County and the project has been modified a number of times to overcome the objections of citizens and environmental groups.

It was not clear at press time if the environmental groups who pressed the lawsuit and prevailed at the district court level would appeal. The project is in San Luis Obispo County just outside the city limits of San Luis Obispo.

• Check back with the Business Times for further updates on this story.

Are you a subscriber? If not, sign up today for a four-week FREE trial or subscribe and receive the 2009 Book of Lists free with your purchase.