Legislation Details

File #: 26-258    Version: 1 Name:
Type: Public Hearing Item Status: Agenda Ready
File created: 3/19/2026 In control: City Council/Public Finance and Economic Development Authority/Parking Authority
On agenda: 5/6/2026 Final action:
Title: SUBJECT: Conditional Use Permit #26-0021 and Environmental Review #26-0051. ACTION: Approve/Disapprove/Modify 1) Conditional Use Permit #26-0021 2) Environmental Review #26-0051 (Categorical Exemption) RECOMMENDATION Planning staff recommends that the Planning Commission approve Environmental Review #26-0051 (Categorical Exemption) and Conditional Use Permit #26-0021 including the adoption of the Resolution subject to the conditions in Exhibit A at Attachment A of this report ("Planning Commission Staff Report #26-258").
Attachments: 1. ATT A Resolution .pdf, 2. ATT B Location Map.pdf, 3. ATT C Site Plan.pdf, 4. ATT D Water Quality Control Division.pdf, 5. ATT E Cat Ex.pdf
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Planning Commission Staff Report

Report Prepared by: Jessie Lee, Development Services Technician II, Development Services Department

Title
SUBJECT: Conditional Use Permit #26-0021 and Environmental Review #26-0051.

ACTION: Approve/Disapprove/Modify
1) Conditional Use Permit #26-0021
2) Environmental Review #26-0051 (Categorical Exemption)


RECOMMENDATION

Planning staff recommends that the Planning Commission approve Environmental Review #26-0051 (Categorical Exemption) and Conditional Use Permit #26-0021 including the adoption of the Resolution subject to the conditions in Exhibit A at Attachment A of this report ("Planning Commission Staff Report #26-258").

Body
DISCUSSION

LOCATION:
The project site is located at 402 Mercy Avenue (APN: 231-200-002).

GENERAL PLAN DESIGNATION AND SURROUNDING USES:


LAND USE DESIGNATION

Project Site
North
South
East
West
Office Commercial
Office Commercial
Office Commercial
Low Density
Office Commercial
Zoning Designation
Project Site
North
South
East
West
Office Commercial (C-O)
Office Commercial (C-O)
Office Commercial (C-O)
R-1-6
Office Commercial (C-O)

The subject site is surrounded by Mercy Hospital to the north, medical offices to the south and west, and additional residential uses to the east.

BACKGROUND AND PRIOR ENTITLEMENETS:
The project site is currently a developed parking lot for Merced Heart Associates. The site is nearly 45,446 square feet and has entrances and exits from Mercy Avenue and Sandpiper Avenue.


Project Description
The proposed project consists of the establishment of a multi-food truck lot to allow up to two food trucks to operate within the parking lot of a developed site located at 402 Mercy Avenue (APN 231-200-001-002). The proposed project is approximately 1.16-acres (50,577 square feet).

The project site is currently developed with an existing building (Merced Heart Associates) and associated parking areas. The proposal does not include new construction or site expansion; rather, it involves the use of existing on-site parking spaces to accommodate mobile food vendors. Each food truck, measuring approximately 22 feet by 8.5 feet, would occupy two standard parking stalls (9 feet by 18 feet each) within the existing parking lot. The designated location is situated along the eastern portion of the site near the internal circulation area, maintaining adequate on-site access and circulation.

The proposed use includes the operation of up to two food trucks with employees providing services to visitors at the site. The applicant has not identified specific food truck vendors or the number of employees per truck. However, all food trucks will be required to utilize an approved commissary in compliance with the Merced County Environmental
Health Department requirements. The sale of alcohol is prohibited as part of this project.
Employee restroom facilities will be provided within the existing Merced Heart Associates building located on the west side of the site.

Pursuant to Merced Municipal Code Section 20.44.020, food trucks are permitted to operate daily between the hours of 7:00 a.m. and 9:00 p.m. The applicant is proposing more limited hours of operation, Monday through Friday from 8:00 a.m. to 5:00 p.m. A condition of approval has been included to allow the Development Services Director to approve extended hours, should the applicant request such a modification in the future.

ANALYSIS:
The proposed use is permitted under the City's Zoning Ordinance (Merced Municipal Code 20.44.020) which allows the operation of food truck parking area with a Conditional Use Permit in any zoning district which permits food trucks, parking areas for multiple food trucks may be established. The subject property is Zoned Office Commercial (C-O) with a General Plan Designation of Office Commercial (CO), which allows this use with a Conditional Use Permit.

As mobile food vendors have gained popularity over the last few years, there has been an increase in the number of permits issued for individual food trucks as well as multi-vendor food truck lots throughout the City. More specifically, there is one food truck that has previously been approved to the west of the subject site.

Condition #16 helps ensure that the food trucks are orientated in a way that cars can still park in the surrounding area and customers have adequate safe space to stand and gather while waiting for their food. Condition #19 addresses trash, noise, and traffic issues. Both conditions are to ensure safety of the operation and surrounding businesses as well.

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, is located on a 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 a 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. Therefore, the project is exempt from further environmental review.

GENERAL PLAN CONSISTENCY:
The site has a General Plan Designation of Office Commercial (CO). Its intended purpose is to provides a location for a broad range of office use including professional offices, business offices, medical offices, and regional or "back" offices. The C-O zoning district can also accommodate limited "accessory" restaurant, retail, and service uses that cater to the needs of on-site employees and visitors.

Findings/Considerations
Please refer to Exhibit B of the Draft Planning Commission Resolution at Attachment A.

ATTACHMENTS
A) Draft Planning Commission Resolution
B) Location Map
C) Site Plan
D) Water Quality Control Division Best Management Practices Brochure
E) Categorical Exemption