Report Prepared by: Diana Lowrance, Deputy Director, Development Services Department
Title
SUBJECT: Report for Discussion on Preliminary Annexation Application #24-03 for the Old Dominion Annexation
REPORT IN BRIEF
The City Council will be asked to evaluate Preliminary Annexation Application #24-03 for the Old Dominion Annexation project. The proposed annexation consists of approximately 260.5 acres, with a developed area of 170.3 acres. The project will include mixed-use development generally located north of Bellevue Road, between G Street and Golf Road, south of Farmland Road.
RECOMMENDATION
City Council - Adopt a motion indicating general support for an official annexation application being processed for the Old Dominion 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 the 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.
Proposed Project - Old Dominion Pre-Application
The proposed project is the annexation of approximately 260.5 acres located on the north side of E. Bellevue Road between G Street and Golf Road. Of the total annexation area, approximately 170.3 acres is proposed for development. The proposed development is a mixed-use project with commercial, residential (including, low-, medium-, and high-density) as well as open space areas, as listed in the table below.
|
Proposed Land Uses |
Acres |
Maximum Units |
Total Building Area |
|
Rural Residential |
20.4 |
60 |
|
|
Low Density Residential |
12.2 |
73 |
|
|
Medium Density Residential |
25.1 |
301 |
|
|
High Density Residential |
12.2 |
440 |
|
|
Planned Development (PD) |
31.5 |
*TBD |
TBD |
|
Commercial |
18.5 |
|
403,000 SF |
|
Open Space/Park Reserve |
21.3 |
|
|
|
Roads and existing canal |
29.1 |
|
|
|
Total |
170.3 |
874 + PD (TBD) |
403,000 SF + TBD |
*Housing units to be decided. Building area includes housing.
The project includes four phases:
|
Proposed Land Uses |
Acres |
Phase 1 |
Phase 2 |
Phase 3 |
Phase 4 |
|
Planned Development (PD) |
31.5 |
31.5 |
|
|
|
|
Commercial |
18.5 |
18.5 |
|
|
|
|
High Density Residential |
12.2 |
|
12.2 |
|
|
|
Medium Density Residential |
25.1 |
|
15.1 |
|
10.0 |
|
Low Density Residential |
12.2 |
|
|
|
12.2 |
|
Rural Residential |
20.4 |
|
|
20.4 |
|
|
Open Space/Park Reserve |
21.3 |
|
|
21.3 |
|
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 G Street 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. The proposed annexation area was not part of the AB3312 legislation that allowed the annexation of UC Merced and certain adjacent properties.
b) Is the proposed development consistent with the land use classifications on the General Plan Land Use Diagram?
Response:
The proposed annexation area is located within the City’s Bellevue Community Plan (BCP) area. The BCP is intended to provide policy direction and a vision for future growth and development within the unincorporated county areas located between the City limits and the UC Merced campus. The Bellevue Community Plan establishes several “Place Types” which are generally mixed-use environments intended to allow for flexible land use options, higher densities, and job creation. Additionally, the BCP identifies the intersection of G Street and E. Bellevue Road as a gateway. The proposed development, a mixed-use project with commercial, residential (including,
low-, medium-, and high-density) as well as open space areas and an entry feature that serves to recognize Bellevue Road as a gateway, may be found consistent with the Place Types in the BCP.
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.
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,” “Grazing Land,” and “Rural Residential Land,” 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” transitions, as is required per the BCP. The proposed commercial and planned development uses will be located closest to the existing city limits and development toward the southwest corner of the project, and the intensity of land use decreases as the project heads northeast to harmoniously blend with the existing rural residential and agricultural uses.
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:
While the annexation of the UC Merced campus was approved by the Local Agency Formation Commission of Merced on July 18, 2024, the proposed annexation helps extend the developed area of the City along E. Bellevue Road from G Street to Golf Road (e.g., 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 include significant amounts of job-generating land uses. The project includes approximately 18.5 acres of commercial (a total building area of 403,000 sq. ft.) and approximately 31.5 acres of planned development (which will include additional commercial areas).
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:
As the project strives to be one of the early developments withing the BCP, it will provide many desirable amenities including important collector roads, community-serving commercial, and a variety of housing options.
City Staff/LAFCO Meetings
On January 9, 2025, City staff met to discuss the Pre-application. On February 6, 2025, City staff met with the applicants and their representatives to review the proposal and offer comments. City staff representatives were from Planning, Inspection Services, Economic Development, Fire, Police, Engineering and Public Works, along with representatives from the Merced Irrigation District and Merced County LAFCO Executive Director Bill Nicholson. City staff concerns included: what land uses should be applied to the annexed areas outside of the project area; the project area is outside of the North Merced Sewer District and would likely need additional trunk lines for conveyance of wastewater; the need for a dam breach analysis; the lack of radio communication infrastructure in North Merced; and the need for usable open space within the open space reserve areas. William Nicholson, the LAFCO Executive Officer, asked what infrastructure studies the City of Merced is doing, given the growth in North Merced and the number of competing pre-annexations.MID concerns included the need to show the six-mile drain along the east side of G Street, updating the Merced Irrigation District (MID) facility locations on the plans, and the MID Tower lateral having capacity issues due to it being used for winter water releases. Additionally, the MID canal(s) crossing the project area would need to be undergrounded, preferable in an easement and not in the right-of-way.
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 the Old Dominion are outlined in the table below.
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, Bellevue Community Plan amendments (if necessary), 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.
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. Summary of Annexation Pre-application Process (approved July 6, 2021)
2. Map of Current Preliminary and Active Annexations
3. Old Dominion Annexation Pre-Application Submittal (Jan. 2025)
4. Presentation