Legislation Details

File #: 26-627    Version: 1 Name:
Type: Public Hearing Item Status: Agenda Ready
File created: 7/14/2026 In control: Planning Commission
On agenda: 9/9/2026 Final action:
Title: SUBJECT: Adopt Resolution #4186 Approving Conditional Use Permit #26-0023 and Adopting Environmental Review #26-0069 (California Environmental Quality Act Class 32 Categorical Exemption) ACTION: Motion to Adopt Resolution #4186 to 1) Approve Conditional Use Permit #26-0023; and 2) Adopt Environmental Review #26-0069 (California Environmental Quality Act (“CEQA”) Class 32 Categorical Exemption). RECOMMENDATION Planning staff recommends the Planning Commission adopt Resolution # 4186, (Attachment A), approving Conditional Use Permit #26-0023 subject to the Conditions of Approval set forth in Exhibit A of this proposed Resolution #4186, including the Conditional Use Permit Standard Conditions adopted by Planning Commission Resolution #1249 and attached to this Staff Report at Attachment B as well as the Findings and Considerations set forth in Exhibit B of this proposed Resolution #4186. The Planning Commission should concurrently adopt the accompanying Environmental Review #26-00...
Attachments: 1. ATT A - #4186 for CUP#26-0023.pdf, 2. ATT B - #1249 CUP Standard Conditions.pdf, 3. ATT C - Cat Ex.pdf, 4. ATT D - Location Map.pdf, 5. ATT E - Site Plan.pdf, 6. ATT F - Floor Plan.pdf, 7. ATT G - Elevations.pdf, 8. ATT H - PD City-Wide Incident Hot Spot Map.pdf, 9. ATT I - PD City-Wide Incident Map (500ftMap-CUP-26-0023.pdf
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 Planning Commission Staff Report

 

Report Prepared by: Jessie Lee, Associate Planner, Development Services Department

 

Title

SUBJECT: Adopt Resolution #4186 Approving Conditional Use Permit #26-0023 and Adopting Environmental Review #26-0069 (California Environmental Quality Act Class 32 Categorical Exemption)

 

ACTION:                     Motion to Adopt Resolution #4186 to

                                                               1)                     Approve Conditional Use Permit #26-0023; and

2)                     Adopt Environmental Review #26-0069 (California Environmental Quality Act (“CEQA”) Class 32 Categorical Exemption).

 

RECOMMENDATION

 

Planning staff recommends the Planning Commission adopt Resolution # 4186, (Attachment A), approving Conditional Use Permit #26-0023 subject to the Conditions of Approval set forth in Exhibit A of this proposed Resolution #4186, including the Conditional Use Permit Standard Conditions adopted by Planning Commission Resolution #1249 and attached to this Staff Report at Attachment B as well as the Findings and Considerations set forth in Exhibit B of this proposed Resolution #4186.  The Planning Commission should concurrently adopt the accompanying Environmental Review #26-0069 (CEQA Class 32 Categorical Exemption under CEQA Guidelines section 15332 for in-fill development) attached to this Staff Report at Attachment C.

 

SUMMARY

 

Sohal #8 Merced Convenience Store and Car Wash is requesting a Conditional Use Permit for the sale of tobacco products/paraphernalia within 600 feet of a public park, and alcohol for off-site consumption (for buildings under 20,000 square feet) per Merced Municipal Code (MMC) Section 20.10.020. A Finding of Public Convenience or Necessity is also required for alcohol sales because Merced is listed under Moratorium City for Type 21 alcohol licenses by the Department of Alcoholic Beverage Control. The Police Department has determined they would support the sale of alcohol for off-site consumption if specific conditions are included to reduce the potential for alcohol-related incidents, which Staff has incorporated into the Conditional Use Permit at Exhibit A to Attachment A.  Staff is recommending approval of this application subject to the Conditions of Approval (Exhibit A to Attachment A) and adoption of Findings and Considerations (Exhibit B to Attachment A).

Body

DISCUSSION

 

LOCATION:

 

The project site is located at 2024 and 2010 Yosemite Parkway, the southeast corner of Yosemite Parkway and Parson Avenue (APN: 061-390-023 and 061-390-024) and depicted on the map at Attachment D.

 

GENERAL PLAN DESIGNATION AND SURROUNDING USES:

 

LAND USE DESIGNATION

 

Project Site

North

South

East

West

Thoroughfare Commercial (CT)

High-to-Medium Density

High-to-Medium Density

Thoroughfare Commercial (CT)

Regional/ Community Commercial (RC)

Zoning Designation

Project Site

North

South

East

West

Thoroughfare Commercial (C-T)

R-3-1.5

R-3-1.5

Thoroughfare Commercial (C-T)

Neighborhood Commercial (C-N)

 

BACKGROUND AND PRIOR ENTITLEMENETS:

 

The subject site is currently vacant. Previously, the project area was occupied by Reyes Food Market, which held a license to sell beer and wine for off-site consumption, and an auto body shop and used vehicle sales business.

 

The subject site consists of two parcels that received approval for a lot merger by the Minor Subdivision Committee in November 2024. The approved lot merger authorizes the consolidation of the parcels into a single lot; however, the Certificate of Compliance has not yet been recorded. A condition of approval requires the Certificate of Compliance to be recorded prior to issuance of building permits.

 

In 2021, a Preliminary Site Plan Review application was submitted for the development of a gas station and convenience store on the subject site.

 

Project Description:

 

The subject site is located at the southeast corner of Yosemite Parkway and Parsons Avenue. The project site is currently two separate parcels and is part of a pending certificate of compliance that would become one parcel. This proposal would be to use the existing driveways located along Yosemite Parkway and Parsons Avenue for vehicle access to the new gas station/convenience market.

 

The proposed sale of alcohol for off-site consumption requires a Conditional Use Permit because the convenience market is less than 20,000 square feet. (MMC Section 20.10.020). The proposed sale of tobacco products also requires a Conditional Use Permit because the project site is located approximately 588 feet from Joe Herb Park, a youth-oriented facility, as regulated by MMC Section 20.44.160.

 

The requested Conditional Use Permit is limited to the sale of alcohol and tobacco products for off-site consumption within the proposed convenience store that will be constructed as part of a new gas station and convenience market development. The proposed gas station, including the fuel canopy and convenience store use, is a permitted use within the Thoroughfare Commercial (C-T) zoning district and does not require a discretionary land use entitlement.

 

ANALYSIS:

 

The proposed sale of alcohol requires a Conditional Use Permit as required by MMC Section 20.10.020 because the convenience market is less than 20,000 square feet. The proposed sale of tobacco products also requires a Conditional Use Permit because the project site is located approximately 588 feet from Joe Herb Park, a youth-oriented facility, which is within the 600-foot threshold established by MMC Section 20.44.160. Consistent with the Municipal Code, tobacco products will be stored behind the employee counter and will not be directly accessible to customers.

 

The Merced Police Department reviewed the proposal and supports the request subject to operational conditions intended to reduce the potential for alcohol-related nuisances and criminal activity. These conditions include prohibiting alcohol advertising on the fuel islands and illuminated alcohol advertising on the building, limiting alcohol display areas to approximately 550 square feet as shown on the approved floor plan, prohibiting sales from drive-through windows and ice tubs, requiring employees selling alcohol during late-night hours to be at least 21 years of age, prohibiting the sale of individual single-serving beer and wine containers unless specifically authorized by the Police Department, and requiring the operator to comply with all laws related to loitering, open containers, and nuisance activities. The conditions also reserve the City's authority to review or revoke the Conditional Use Permit if the business becomes associated with recurring criminal activity or public nuisance conditions.

 

In addition to the operational conditions, the project is subject to standard development requirements addressing site lighting, landscaping, parking, refuse facilities, graffiti prevention, signage, and maintenance. These conditions are intended to ensure the development remains compatible with surrounding commercial and residential uses while promoting a safe and well-maintained site.

 

Staff finds that the proposed Conditions of Approval adequately address the potential land use impacts associated with the sale of alcohol and tobacco products. (Exhibit A to Attachment A). With the recommended operational restrictions and continued oversight by the City and the California Department of Alcoholic Beverage Control, the proposed use is expected to be compatible with the surrounding area and consistent with the purpose and intent of the Thoroughfare Commercial (C-T) zoning district.

 

The City of Merced is designated by the California Department of Alcoholic Beverage Control (ABC) as a moratorium city for new Type 21 alcohol licenses.  Following approval of the Conditional Use Permit, the applicant will be required to obtain the required Finding of Public Convenience or Necessity from the City Council, as required by the proposed conditions of approval, and satisfy all other applicable conditions of approval and ABC licensing requirements before commencing the sale of alcohol at the site.

 

ENVIRONMENTAL DETERMINATION:

 

The proposed project qualifies for a Class 32 Categorical Exemption pursuant to CEQA Guidelines Section 15332 (In-Fill Development Projects). The project is consistent with the applicable General Plan and zoning regulations. The project site, less than five acres in size within a fully urbanized area and is substantially surrounded by existing development. The project site has no value as habitat for endangered, rare, or threatened species. The project would not result in significant impacts related to traffic, noise, air quality, or water quality, and is adequately served by existing utilities and public services.

 

GENERAL PLAN CONSISTENCY:

 

The site has a General Plan Designation of Thoroughfare Commercial (CT). Its intended purpose is to accommodate auto-oriented commerce and the needs of people traveling on highways. Large recreational facilities and some “heavy commercial” uses are also common. Typical uses include motels, gas stations, truck stops, restaurants, automobile sales, auto repair shops, bowling alleys, driving ranges, skating rinks, souvenir shops, carwashes, and plant nurseries. The project complies with the General Plan designation of Throughfare Commercial (CT) and the Zoning classification of Thoroughfare Commercial (C-T), with approval of this Conditional Use Permit.

 

Findings/Considerations:

 

Staff recommends adopting the Findings and Considerations at Exhibit B to Attachment A, Finding and Considerations for Conditional Use Permit #26-0023.

 

ATTACHMENTS

A.                     Proposed Planning Commission Resolution #4186 with Exhibit A (Conditions of Approval) and Exhibit B (Findings and Considerations)

B.                     Planning Commission Resolution #1249, Conditional Use Permit Standard Conditions

C.                      Environmental Review #26-0069 (CEQA Class 32 Categorical Exemption)

D.                      Location Map

E.                      Site Plan

F.                      Floor Plan

G.                      Elevations

H.                      Police Department City-Wide Incident Hot Spot Map

I.                      Police Department Incident Map (500-foot-radius from Site)