Report Prepared by: Valeria Renteria, Associate Planner, Development Services Department
Title
SUBJECT: Request for General Support on Preliminary Annexation Application #25-02 for the Mission 82 Annexation
REPORT IN BRIEF
The City Council will be asked to evaluate Preliminary Annexation Application #25-02 for the Mission 82 Annexation project. The proposed annexation consists of approximately 110.6 acres and would have a capacity of building up to 1,057 single-family homes. The subject site is generally located on the south side of East Mission Avenue, 500 feet east of Highway 99 and 2,000 feet west of South Miles Road (Assessor’s Parcel Numbers 066-032-004, -002, -003; 066-260-017, -018; 066-040-001, -002, -003, -004, -005, -006, -007, -008, -009, -010, -011, -012, -013, -014, -015, -016, -017, -018, and -019).
RECOMMENDATION
City Council - Adopt a motion indicating general support for an official annexation application to be processed for the Mission 82 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.
Mission 82 Annexation Pre-Application
The proposed annexation is approximately 110.6 acres and is generally located on the south side of East Mission Avenue, 500 feet east of Highway 99 and 2,000 feet west of South Miles Road (Attachment 1). The proposed development would have a Zoning Classifications of R-2, R-1-5, R-1-6, and R-1-10, and General Plan designations of Low Density Residential (42.6 acres for 93 - 241 units), and Low-Medium Density Residential (68 acres for 408 - 816). The proposed annexation would consist of lots ranging in size from 5,000 to 6,000 s.f. There is an approximately 5.4-acre portion of the project area that is already developed with 18 lots, each approximately 10,000s.f. in size. In total, there would be a potential of 501 to 1,057 lots for single-family homes.
The applicant has yet to submit a tentative subdivision map. However, they did submit a circulation layout, for which the subdivision of lots would complement. Attachment 3 shows the proposed circulation layout, which includes the multiple vehicle access points from East Mission Avenue and Mariano Way.
The applicant has yet to submit building designs for the 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.
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 East Mission Avenue. The application would also involve a Sphere of Influence amendment to add approximately 22.6 acres in the eastern portion of the project site. The annexation area forms a logical and efficient City limit and includes developed areas (where appropriate) to minimize the formation of unincorporated peninsulas.
b) Is the proposed development consistent with the land use classifications on the General Plan Land Use Diagram?
Response:
The subject site has a General Plan designation of Commercial Reserve and Business Park Reserve. If City Council indicates general support for an official application, the applicant intends to include a request for a General Plan Amendment to change the General Plan Designation from Commercial Reserve and Business Park Reserve to Low Density Residential and Low-Medium Density Residential. The western and eastern portion of the subject site would be designated Low-Medium Density Residential (68 acres) which allows for a density of 6-12 dwellings per acre, which could be up to 816 units total. The remaining 42.6 acres located in the center of the subject site, would be designated Low Density Residential. This area would include 5.4 acres of 18 existing homes and 37.2 acres that could be developed for up to 223 units.
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 majority of the project site has land designated as “Farmland of Statewide 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. A portion at the southeast corner of the project site may be designated “Prime Farmland”. If mitigations are necessary, they will be addressed during the environmental review process.
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 in other areas within the City of Merced. 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 serve as a buffer from the commercial and high-medium residential uses to the north of the project site and the rural and agricultural uses to the south of the project site. In addition, the proposed residential subdivision is generally consistent with nearby uses, 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. But does provide more housing opportunities by Campus Parkway which is intended to facilitate connection from Highway 99 to 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 (501 - 1,057). 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).
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 a recently approved development to the north of the project site. 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 around the project site in the future.
City Staff/LAFCO Meetings
On December 11, 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 Weaver Union School District (Superintendent Mike Weber). The application does not include how the proposed layouts would be developed which limited the amount of comments City departments could provide. When those maps are submitted, the City will have an opportunity to review and comment on the maps once the applicant provides them, further on in the application process.
Staff also met with Bill Nicholson, the LAFCO Executive Director, and had a chance to further discuss the proposed project. Mr. Nicholson will have a chance to review the project more in depth when the annexation application is received by the City and when the annexation application and sphere of influence amendment is presented to LAFCO.
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 Mission 82 are outlined below.
Water: Maximum Demand of 314,986 gpd.
Wastewater: Average Daily Demand of 219,856 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 4, and a map of current preliminary and active annexations is shown at Attachment 5.
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. Mission 82 Annexation Proposed General Plan and Zoning
3. Mission 82 Annexation Circulation
4. Summary of Annexation Pre-application Process
5. Map of Current Preliminary and Active Annexations