Report Prepared by: Valeria Renteria, Associate Planner, Development Services Department
Title
SUBJECT: Public Hearing - General Plan Amendment #24-03, Zone Change #435, Establishment of Residential Planned Development (RP-D) #83, and Vesting Tentative Subdivision Map #1333, Initiated by Lennar Homes of California, on Behalf of Merced Gateway, LLC, Property Owners. The Subject Site is Located at 3345, 3351, and 3610 E. Gerard Avenue, at the Southwest Corner of Campus Parkway and E. Gerard Avenue. The General Plan Amendment Would Change the General Plan Land Use Designation for Approximately 73.7 Acres from Manufacturing/Industrial (IND) and Business Park (BP) to Approximately 40.25 Acres of Low-Medium Residential (LMD), Approximately 22.65 Acres of High-Medium Density Residential (HMD), and Approximately 9 Acres to Remain Business Park (BP). The Zone Change Would Allow the Establishment of Residential Planned Development (RP-D) #83 to Change the Land Use from Business Park to “Residential” and Establish Development Standards for this Development. The Vesting Tentative Subdivision Map Would Subdivide Approximately 73.7 Acres to into Approximately 570 Residential Lots, Two Open Space/Park Areas Totaling Approximately 3 Acres, and Two Lots Designated Business Park (B-P) Totaling Approximately 9-Acres for Future Development
REPORT IN BRIEF
Considers General Plan Amendment #24-03 to amend the General Plan Land Use Designation from Business Park (BP) and Manufacturing/Industrial (IND) to Business Park (BP), Low-Medium Residential (LMD), High-Medium Residential (HMD) and consider Zone Change #435 to allow the Establish Residential Planned Development (RP-D) #83. Vesting Tentative Subdivision Map (VSTM) #1333 would allow the development of 570 residential lots and about 9 acres of commercial/business park uses. Council would also consider the Environmental Review and Legislative Action Agreement for approximately 73.7 acres located at 3345, 3351, and 3610 E. Gerard Avenue, at the southwest corner of Campus Parkway and E. Gerard Avenue.
RECOMMENDATION
City Council - Adopt a motion:
A. Adopting Resolution 2025-60, A Resolution of the City Council of the City of Merced, California, #24-30 (Mitigated Negative Declaration) for General Plan Amendment #24-03 for approximately 61.7 acres of land generally located on the southwest corner of East Gerard Avenue and Campus Parkway, and approving General Plan Amendment #24-03 for the same property changing the General Plan designation from Business Park (BP) and Manufacturing/Industrial (IND) to Business Park (BP), Low Medium Density Residential (LMD), High-Medium Density (HMD); and,
B. Introducing Ordinance 2581, An Ordinance of the City Council of the City of Merced, California, approving Zone Change #435 and Establishment Residential Planned Development (RP-D) #83, changing the land use designation from Business Park to Residential for 61.7 acres for an approximate 73.7 acre-parcel generally located on the southwest corner of East Gerard Avenue and Campus Parkway; and,
C. Approving the Legislative Action Agreement and authorizing the City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as directed by the City Council; or,
2. Approve subject to modifications as conditioned by City Council; or,
3. Deny; or,
4. Refer back to staff for reconsideration of specific items (to be addressed in the motion); or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Title 19 of the Merced Municipal Code outlines environmental review procedures and California Government Code Section 65358(a) grants authority to amend all or part of an adopted General Plan. Merced Zoning Ordinance Section 20.20.020 grants the City Council authority to approve Planned Developments.
CITY COUNCIL PRIORITIES
Not applicable.
DISCUSSION
Project Description
The Project Site consists of 3 parcels that total approximately 73.7 acres located at 3345, 3351, and 3610 East Gerard Avenue (APNs 061-680-001, 061-710-009 and 061-710-023) (Attachment 1). The properties are currently designated in the General Plan as Business Park (BP) and Manufacturing/Industrial (IND) (Attachment 2). The properties are currently zoned as Business Park (B-P) and Heavy Industrial (I-H). The subject site is surrounded to the north by residential uses, to the west by commercial uses, to the east by vacant land in the City limits zoned Heavy Industrial, and to the south by residential and agricultural uses in the County zoned by Merced County as General Agricultural.
The applicant is requesting approval to amend the General Plan Land Use Designation from Business Park (BP) and Manufacturing/Industrial (IND) to Business Park (BP), Low Medium Residential (LMD) and High-Medium Residential (HMD) (Attachment 3) and Zone Change #435 to rezone the site to establish Residential Planned Development (R-PD) #83. The action is being requested to support the development of 570 single-family homes, 3 acres of open space and 9 acres of Business Park (BP) uses.
The proposed residential lots would range in size between 2,347 square feet and 6,889 square feet. As shown on Vesting Subdivision Map #1333 at Attachment 4, the northern portion of the project (north of Campus Parkway) would have a Low-Medium Density land use designation consisting of larger lots ranging between 2,800 square feet and 6,889 square feet. This portion of the project would have 328 lots and include vehicle access from Pluim Drive (at two locations), and Gerard Avenue (at one location). This portion of the project would include a neighborhood park shown as “Lot D” on said map. The site plan, floor plan, and elevations for this portion of the project are shown at Attachment 5.
The southern portion of the project, south of Campus Parkway, would include a Medium-Hight Density Residential designation and consists of smaller lots ranging between 2,375 square feet and 5,835 square feet. This portion of the project would have 242 lots and include vehicle access from E. Mission Avenue (from two locations). This portion of the project would include a neighborhood park shown as “Lot F” on said map. The site plan, floor plan, and elevations for this portion of the project are shown at Attachment 6.
The developer has submitted building designs for the residential lots. Because this site is proposed to be zoned as Residential Planned Development, any changes to the building design/elevations shall be reviewed and approved by Planning Staff prior to issuance of a building permit for this subdivision. The 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, except as otherwise approved through the Residential Planned Development. The minimum parking requirement for single-family homes is one parking space per unit. These units have at least one covered parking space. Attachment 5 and 6 illustrates the proposed elevations for the residential units. Attachment 8 illustrates the parking plan. The designated Business Park parcels would be developed at a later time.
Environmental Review
Planning staff conducted an environmental review of the project in accordance with the requirements of the California Environmental Quality Act (CEQA) and concluded that Environmental Review #24-30 results in a Mitigated Negative Declaration as the proposal would not have significant effects on the environment if mitigated. A copy of the Initial Study with a Mitigated Negative Declaration can be found at Attachment 11.
Planning Commission Action
The Planning Commission reviewed this proposal during the Planning Commission Meeting of July 9, 2025. The public comment period was opened, and the applicant’s representatives spoke in favor of the project and answered some questions from the Planning Commission.
After the hearing, the Planning Commission voted to recommend approval to the City Council for the proposed General Plan Amendment, Zone Change and Establishment of Residential Planned Development unanimously by a vote of 7-0-0 (refer to Planning Commission Resolution #4163 at Attachment 9). In addition, the Planning Commission approved the Vesting Tentative Subdivision Map #1333 and adopted the Mitigated Negative Declaration by the same vote. Planning Commission Staff Report #25-638 is provided at Attachment 10.
City Council Action
After the public hearing, staff recommends that the City Council adopt the Draft Resolution at Attachment 13 (approving Environmental Review #24-30 and General Plan Amendment #24-03), the Draft Ordinance at Attachment 14 (approving the Establishment of Residential Planned Development (RP-D) #83 and Zone Change #435), and the Legislative Action Agreement at Attachment 15.
IMPACT ON CITY RESOURCES
No appropriation of funds is needed. This property will be required to be part of the City’s Community Facilities District (CFD) for Services and would pay all applicable Public Facilities Impact Fees.
ATTACHMENTS
1. Location Map
2. Current Land Use
3. Proposed Land Use Changes
4. Vesting Tentative Subdivision Map #1333
5. Site Plan and Elevations for Northern Portion of Site
6. Site Plan and Elevations for Southern Portion of Site
7. Development Standards
8. Parking Plan
9. Planning Commission Resolutions #4163 and #4164
10. Administrative Report #25-638 (from Planning Commission Meeting of 7-9-2025)
11. Initial Study (Mitigated Negative Declaration)
12. Mitigation Monitoring and Reporting Program
13. Draft City Council Resolution #2025-60 (General Plan Amendment)
14. Draft Ordinance 2581 (Zone Change)
15. Legislative Action Agreement
16. Presentation