Report Prepared by: Francisco Mendoza-Gonzalez, Senior Planner, Development Services Department
Title
SUBJECT: Report for Discussion on Preliminary Annexation Application #25-01 for the Ardison Annexation
REPORT IN BRIEF
The City Council will be asked to evaluate Preliminary Annexation Application #25-01 for the Ardison Annexation project. The proposed annexation consists of approximately 41.03 acres and will be developed with 206 lots for single-family homes. The subject site is generally located on the west side of Eddington Avenue (future), and 1,700 feet north of W. Bellevue Road (Assessor’s Parcel Number 170-060-010).
RECOMMENDATION
City Council - Adopt a motion indicating general support for an official annexation application to be processed for the Ardison Annexation project.
Body
ALTERNATIVES
1. Indicate general support for an official annexation application moving forward; or,
2. Indicate general non-support for an official annexation application moving forward; or,
3. Direct staff and/or the applicants to provide additional information or analysis (to be specified in Council motion) before making a decision; or,
4. Continue to the item to a future Council meeting (date and time to be specified in motion).
AUTHORITY
On July 6, 2021, the City Council approved a new Annexation Pre-application Process to give Council early input on potential annexation projects. The City Council reviews these annexation pre-applications against the criteria found in General Plan Policy UE -1.3.g. Annexations are governed by the Cortese-Knox-Hertzberg Act of 2000, which establishes procedures for city annexations and other local government changes in organization.
CITY COUNCIL PRIORITIES
Not Applicable.
DISCUSSION
Annexation Pre-Application Process
The City Council reviews annexation pre-applications against the criteria found in General Plan Policy UE-1.3.g. After City Council’s determination, the applicant may proceed with an official annexation application. Annexations are governed by the Cortese-Knox-Hertzberg Act of 2000, which establishes procedures for city annexations and other local government changes in organization.
Ardison Annexation Pre-Application
The proposed annexation is approximately 41.03 acres and is generally located on the west side of Eddington Avenue (future), and 1,700 feet north of W. Bellevue Road (Attachment 1). The proposed development would have a Zoning Classification of Planned Development, and General Plan designation’s of Village Residential (7.38 acres for 63 lots), and Low Density Residential (33.65 acres for 143 lots). The Village Residential (VR) lots would consist of a townhome-like design with lots ranging in size between 1,500 s.f. and 4,500 s.f. The Low Density Residential (LD) lots would range in size between 6,000 square feet and 11,000 square feet, with the majority of these lots being around 6,000 square feet. In total, there would be 206 lots for single-family homes.
Attachments 2 and 3 show the proposed annexation/subdivision layout (and overall application submittal), which includes vehicle access from both Farmland Avenue and Hayden Street. The Village Residential lots would include a townhome-like development with 4 units under one roof, backyards for each unit, and side yards for the units on the sides. The two interior townhomes would have a one-car garage, and the homes on the sides would have a two-car garage. The exterior of the townhomes would include finishes that add architectural interest such as stucco, horizontal siding, board and batten, stone veneers, and possibly vibrantly colored entry doors that help differentiate between each unit.
The applicant has yet to submit building designs for the Low-Density Residential lots (143 lots). However, these homes shall be required to comply with the City’s minimum design standards for single-family homes as required under Merced Municipal Code Section 20.46.020 - Design Standards for Single-Family Dwellings and Mobile Homes, and any other development standards requested during the application for the Establishment of the Planned Development.
Potentially Increasing Annexation Boundary
The applicant for this pre-annexation application is also involved in another adjacent pre-annexation application, known as Baxter Ranches. Baxter Ranches consists of approximately 90 acres and is located just east of the subject site (see Attachment 4). Baxter Ranches is bounded to the north by Farmland Avenue, to the south by Bellevue Road, to the west by Eddington Avenue (future), and to the east by Denson Avenue (future). Baxter Ranches went to the City Council as a Pre-Annexation Application in 2023; Council voted to generally support the project. There is a possibility that the applicant may combine the boundary of the Ardison Annexation site with the boundary (or a portion of the boundary) of Baxter Ranches site for a potential total of approximately 130 acres. Doing so would result in a more cohesive boundary that allows the applicant to consolidate both annexation sites into one application and conduct one comprehensive environmental study. Attachment 5 shows both pre-annexation and Bellevue Ranch North.
Merced Vision 2030 General Plan- Merit Based Criteria
The Merced Vision 2030 General Plan, Chapter 2 - Urban Expansion, Policy UE-1.3, Implementing Action - 1.3g provides that future annexation requests be evaluated against the following conditions:
a) Is the area contiguous to the current City limits and within the City’s Specific Urban Development Plan (SUDP)/Sphere of Influence (SOI)? Do the annexed lands form a logical and efficient City limit and include older areas where appropriate to minimize the formation of unincorporated peninsulas?
Response:
The proposed annexation area is contiguous to the current City limits along Eddington Avenue (future road) and is located within the City’s Sphere of Influence. The annexation area forms a logical and efficient City limit and includes developed areas (where appropriate) to minimize the formation of unincorporated peninsulas.
As mentioned in the “Discussion” section of this report, this annexation could potentially be combined with a portion or the entirety of the Baxter Ranches Annexation (approximately 90 acres), just east of the subject site. Together both sites would combine for approximately 130 acres and help fill-in the County pocket between Bellevue Ranch West and Bellevue Ranch North. However, including all of the Baxter Ranch annexation area would create an unincorporated peninsula located north of Bellevue Road and west of M Street.
b) Is the proposed development consistent with the land use classifications on the General Plan Land Use Diagram?
Response:
The proposed Ardison annexation area is located within the City’s sphere of influence, which extends beyond the subject site (4,000 feet north and 4,000 feet west). The subject site primarily has a General Plan designation of Low Density Residential (LD), but it also has General Plan designations of School (SCH) for a floating school site near the center of the subject site, and a sliver of Open Space-Park/Recreation (OS-PK) for a floating park site near the southern portion of the subject site. Staff reached out to the Merced City School District regarding the floating school site. The facilities manager noted they need additional time to assess the need for a school within the subject site. Staff noted that the applicant recently dedicated school sites nearby within Bellevue Ranch North, and Bellevue Ranch West. Staff is hoping to receive a determination from the school district by the time this pre-annexation application is presented to Council.
In addition, this proposal includes a request to change the land use designation on the northern portion of the subject site from Low Density Residential to Village Residential. Village Residential allows for more compact development at densities between 7 - 30 units per acre, with a minimum average of 10 dwelling units per acres. The proposed density for the VR portion would be 8.54 dwelling units per acre. The density may need to be increased to meet the density requirement in the General Plan for VR designations, or they may have to select a different General Plan designation.
If City Council indicates general support for an official application, the applicant intends to include a request for a General Plan Amendment to eliminate the General Plan designations of School, and Open Space-Park/Recreation, and replace a 7.38 acre portion of Low Density Residential with Village Residential in their pre-annexation application.
c) Can the proposed development be served by the City water, sewer, storm drainage, fire and police protection, parks, and street systems to meet acceptable standards?
Response:
Details regarding the provision of City services will be addressed through the environmental review and entitlement processes if the annexation moves forward. The development of the project will require the payment of impact fees to support needed public services, including fire and protection services, parks, and street systems. Finally, the project must comply with the standards to be served by City water, sewer, storm drainage, fire and police protection, parks, and street systems necessary to meet acceptable standards and service levels and is not expected to require improvements and additional costs to the City beyond which the developer will either provide or mitigate. Further, water and sewer lines are available in Bellevue Road, approximately 0.75 miles away.
d) Will this annexation result in the premature conversion of prime agricultural land as defined on the Important Farmland Map of the State Mapping and Monitoring Program? If so, are there alternative locations where this development could take place without converting prime soils?
Response:
The project site has land designated as “Farmland of Local Importance,” so this annexation will not result in the loss of prime agricultural land as defined on the Important Farmland Map of the State Mapping and Monitoring Program.
e) Will a non-agricultural use create conflict with adjacent or nearby agricultural uses? If so, how can these conflicts be mitigated?
Response:
Per the applicant, the project has been designed to minimize impacts by placing the land uses in a way that creates “soft” land use transitions. The proposed residential uses are intended for single-family homes and are consistent with the land use patterns and subdivision layouts just east of the subject site, within Bellevue Ranch North. The proposal does not include higher intense uses such as commercial or industrial, that could potentially lead to compatibility concerns generating significantly more noise, traffic, air quality, etc. The proposed residential uses are intended to blend with the existing rural residential and agricultural uses to the north, west, and south. In addition, the proposed residential subdivision is generally consistent with nearby Bellevue Ranch North and Bellevue Ranch West, which would not significantly alter those surrounding land use patterns.
f) Does annexation of the area help the City reach one of the following goals?
1) Does annexation of the area bring the City closer to the annexation of the UC Merced campus and University Community?
Response:
The annexation of the UC Merced campus was approved by the Local Agency Formation Commission of Merced on July 18, 2024. This proposed annexation does not extend the developed area of the City toward the UC campus.
2) Does the area contain significant amounts of job-generating land uses, such as industrial, commercial, office, and business/research and development parks?
Response:
The proposed development does not include land uses such as industrial, commercial, or office, but it does provide jobs during the construction phases, and while homes are sold. In addition, the proposal would provide much needed housing for the community (206 homes). Many infill subdivisions and lots have been developed over the past 10 years. The inventory of shovel ready/entitled sites has decreased during that period. This annexation would create a pipeline for continuation of much needed housing to meet the demands of the community as it expands (in particular with UC Merced and the future joint rail station in downtown).
3) Does the project provide key infrastructure facilities or other desirable amenities, such as the extension of major roads, utility trunk lines, parks and recreational facilities, etc.?
Response:
The proposal would extend infrastructure to the subject site through portions of Bellevue Ranch North. This would create connectivity between the subject site and existing infrastructure. Installing this connecting infrastructure (water, sewer, storm, roads, power, etc.) would make it easier to develop portions of Bellevue Ranch North in the future.
City Staff/LAFCO Meetings
On March 6, 2025, City staff met with the applicants and their representatives to review the proposal and offer comments. City staff had representatives from Planning, Inspection Services, Economic Development, Fire, Housing, Engineering and Public Works, along with representatives from Merced County LAFCO (Executive Director Bill Nicholson). City staff concerns included: confirming that Lots A and B (being used as joint driveways) would be wide enough to allow Fire engine access; confirming that the proposed ½-width street (Hayden Road) could meet City standards; and following-up with the school district to confirm whether they are interested in developing a school within the subject site.
Bill Nicholson, the LAFCO Executive Director, had a few comments regarding the proposal. Mr. Nicholson would like more information about the timing of development relative to the adjacent Bellevue Ranch Master Plan (north portion); he encouraged the applicant to increase the annexation area to include a larger boundary, if possible combining the subject site with the adjacent Baxter Ranches Annexation (the applicant in considering this);the proposal could conflict with the City’s upcoming General Plan Update (however this is a 3 year process that hasn’t officially started and is expected to be completed around 2028); concerns that the site could be land locked (however road access has already been dedicated to the site through the Bellevue Ranch North Large Lot Final Map); and there is a preference to prepare comprehensive planning such as a community plan (however the proposal mostly complies with the current General Plan land use designations).
Wastewater Analysis
The City’s 2030 General Plan discusses City Growth that may occur by the year 2030. As part of the infrastructure planning associated with accommodating this growth, the City prepared the 2022 Draft Wastewater Collection System Master Plan Update (2022 WCSMP). The 2022 WCSMP outlines a strategy to meet the long-term sewer system needs of the General Plan. Key infrastructure needs include the wastewater collection system itself; wastewater treatment, disposal, and reuse facilities; and various potable and non-potable water needs for growing areas of the City.
Wastewater and water demand estimates for Ardison are outlined below.
Water: Average Daily Demand of 56,304 gpd. Maximum Demand of 106,978 gpd. Peak Hour Flow of 157,651 gpd.
Wastewater: Average Daily Demand of 40,800 gpd. Peak Hour Flow of 93,840 gpd.
Next Steps
If the City Council indicates general support for the annexation, the applicants will need to decide if they want to proceed with submitting an official annexation application. As the project is adjacent to the current City limits, the annexation application could begin the annexation process through the City. Required entitlements in addition to Annexation/Pre-Zoning would be a Pre-Annexation Development Agreement, General Plan Amendments, along with the environmental review process. After completing the required application process for the above (generally takes 12 to 18 months), the project could be scheduled for public hearings before the City Planning Commission and City Council and finally, LAFCO. A summary of the Annexation Pre-Application Process is shown at Attachment 6, and a map of current preliminary and active annexations is shown at Attachment 7 (except for the Ardison Pre-Annexation).
Council Action
After reviewing the pre-application materials and hearing from the applicants, the City Council should indicate either general support or non-support for the applicants moving forward with an official annexation application.
IMPACT ON CITY RESOURCES
There will be no impacts on City resources from this pre-application. Additionally, applicants for annexations pay application fees (which are intended to offset the cost of application processing). Additionally, the applicant pays for the cost of any California Environmental Quality Act (CEQA) document preparation.
No appropriation of funds is needed.
ATTACHMENTS
1. Location Map
2. Ardison Annexation Site Plan
3. Ardison Annexation Pre-Application Submittal
4. Baxter Ranches Annexation Site Plan
5. Ardison Annexation with Baxter Ranches and Bellevue Ranch North
6. Summary of Annexation Pre-application Process
7. Map of Current Preliminary and Active Annexations (except for Ardison Pre-Annexation)
8. Presentation