Report Prepared by: Valeria Renteria, Associate Planner, Development Services Department
Title
SUBJECT: Second Reading and Final Adoption of an Ordinance Approving Zone Change #435 and Establishment Residential Planned Development (RP-D) #83, Changing the Land Use Designation from Business Park 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
REPORT IN BRIEF
Second reading and final adoption of an Ordinance approving a zone change and establishment of a Residential Planned Development changing the land use designation from Business Park Residential for 61.7 acres for an approximate 73.7 acre parcel located on the southwest corner of East Gerard Avenue and Campus Parkway.
RECOMMENDATION
City Council - Adopt a motion adopting 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.
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
History
At the October 6, 2025, Council meeting, staff introduced Ordinance 2581, which received Council approval for the first reading.
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.
Previous Actions
The City Council held a noticed public hearing on October 6, 2025, introducing Ordinance 2581. The item passed and is now before City Council for a second reading and final adoption.
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. Ordinance 2581