Planning Commission Staff Report
Report Prepared by: Diana Lowrance, Deputy Director, Development Services, Francisco Mendoza-Gonzalez, Senior Planner, Development Services, and Rincon Consulting
Title
SUBJECT: General Plan Amendment #24-17, Zone Change #436, Site Utilization Plan Revision #19 to Planned Development #4, Site Utilization Plan Revision #14 to Planned Development #42, and Site Utilization Plan Revision #8 to Planned Development #46 - , initiated by the City of Merced, to change the General Plan and Zoning designations for thirty (30) sites totaling approximately 94.96 acres. The general plan amendment and zone change of these sites is necessary to accommodate the Regional Housing Needs Allocation (RHNA) shortfall. The RHNA shortfall is the remaining RHNA once planned and approved units (pipeline projects) and projected ADU development is considered. Pursuant to California Housing Law, the City must demonstrate the availability of enough sites (with appropriate zoning) to allow for the development of the RHNA shortfall. **PUBLIC HEARING**
ACTION: PLANNING COMMISSION:
Recommendation to City Council
Approve/Disapprove/Modify
1) Environmental Review #24-42 (General Plan EIR Addendum) (Sites A through DD)
2) General Plan Amendment #24-17 (Sites A through DD)
3) Zone Change #436 (Sites A through V)
4) Site Utilization Plan Revision #19 to P-D #4 (Site W)
5) Site Utilization Plan Revision #8 to P-D #46 (Site X)
6) Site Utilization Plan Revision #14 to P-D #42 (Sites Y, Z, AA, BB, CC, & DD)
CITY COUNCIL:
Approve/Disapprove/Modify
1) Environmental Review #24-42 (General Plan EIR Addendum) (Sites A through DD)
2) General Plan Amendment #24-17 (Sites A through DD)
3) Zone Change #436 (Sites A through V)
4) Site Utilization Plan Revision #19 to P-D #4 (Site W)
5) Site Utilization Plan Revision #8 to P-D #46 (Site X)
6) Site Utilization Plan Revision #14 to P-D #42 (Sites Y, Z, AA, BB, CC, & DD)
SUMMARY
The City of Merced’s 6th cycle Housing Element update includes a commitment to rezone sites to accommodate the City’s share of the regional housing need pursuant to State law. Thirty (30) sites were considered for rezoning. Ultimately, Planning staff is recommending approval of the changes in land use designation and rezone of twenty-seven (27) sites (totaling 89.13 acres), dispersed across the City to allow for increased housing density.
RECOMMENDATION
Planning staff recommends the Planning Commission recommend approval to the City Council of the Addendum to the General Plan Environmental Impact Report (EIR) (Environmental Review #24-42) for Sites A through DD, General Plan Amendment #24-17 for Sites A through DD with the exception of Sites G, R and S (totaling 5.83 acres) which are recommended for denial, Zone Change #436 for Sites A through V with the exception of Sites G, R and S which are recommended for denial, Site Utilization Plan Revision #19 to Planned Development #4 for Site W, Site Utilization Plan Revision #8 to Planned Development #46 for Site X, and Site Utilization Plan Revision #14 to Planned Development #42 for Site Y (as modified herein) and Sites Z, AA, BB, CC, and DD.
Planning Commission Options
The Planning Commission will be holding a public hearing and voting separately on the above applications for each individual site. The Planning Commission has the option to recommend approval or denial of the proposed General Plan and Zoning changes for each of the thirty (30) sites. For those Planning Commissioners who may have a conflict of interest regarding any of the sites, the Planning Commissioner will need to recuse himself when that site’s public hearing is called and exit the Chambers for the duration of that item. City staff will be providing guidance to the Commission regarding these conflicts prior to the meeting.
There may be suggestions from the public regarding rezoning additional sites. Because of the public noticing requirements, the Planning Commission cannot take any action on such rezones, but can recommend to the City Council that staff be directed to consider additional sites in the future. The same can be said for recommending programs, like making residential uses allowed uses in commercial zones and other suggestions that may be raised at the hearing(s).
Body
DISCUSSION
Project Description
The strategic changes to the land use and zoning designation of 27 of the 30 sites (listed in Exhibit B of Planning Commission Resolution #4149 (Attachment A) - Housing Element Rezone Sites are essential to expand housing opportunities and meet the City’s remaining share of the RHNA (see Attachment C). Updates to the Merced Vision 2030 General Plan Land Use Map and the Zoning Map to reflect these changes are necessary to obtain certification of the draft 6th cycle Housing Element by the California Housing and Community Development Department (HCD). These sites are proposed to be rezoned from Low-Density Residential (R-1-5, R-1-6, R-1-10, R-2), General Commercial (C-G), and Planned Development [RP-D, P-D, PD (CO)] to High-Density Residential [R-4, P-D (VR), P-D (HD), P-D (HMD)] or Central Commercial (C-C). The land use designation of these sites will also be redesignated from Low-/Low Medium-Density Residential, General Commercial, Office Commercial, and Open Space to primarily High Density Residential or Regional/Community Commercial. No development projects are proposed as part of the Housing Element rezoning efforts.
The zoning and land use changes are enumerated in the draft 6th cycle Housing Element programs to incentivize and allow for increased development density to meet the City’s remaining share of the RHNA. The sites selected for rezoning are underutilized and/or vacant and meet HCD’s criteria for inclusion in the site inventory. Additionally, by rezoning the sites, the City will be able to meet state requirements to plan for its share of the regional housing need. Government Code § 65583.2 establishes a minimum density of 20 units per acre, a minimum site size to permit at least 16 units on site, and zoning to allow ownership and rental housing by right, and in which at least 20 percent of the units could be made affordable to lower-income households. The land use and zoning changes will make these lands suitable and available for the future development of approximately 1,898 low-income units and 1,017 moderate-income units. Facilitating development of sufficient lower-income units is essential ensure that residents have access to safe and affordable housing.
Pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15164, California Code of Regulation, Title 14, the City prepared an Addendum to the General Plan EIR for Merced Housing Element Update and Rezoning, attached as Attachment E. The Housing Element, and land use and zoning changes as described will not cause any significant environmental effects. The Project involves modifications to the City’s General Plan and Zoning Map to implement the City’s Housing Element and allow for HCD certification, in compliance with State law, and no specific development projects are included in the project. An addendum is the appropriate environmental document under CEQA because the proposed project would not require revisions to the certified 2012 General Plan EIR due to the involvement of any new significant environmental effects or substantial increases in the severity of significant effects previously identified in the General Plan EIR. Additionally, any future development on the sites affected by the Project will require individual environmental review under CEQA to assess potential impacts related to each specific proposal.
Background
The Housing Element contains goals, policies and programs to address the future housing needs of the region during the 6th housing cycle, which runs from 2024-2032. As part of the comprehensive update to the Housing Element, the City is responsible for zoning sufficient land to accommodate its share of the RHNA, a unit count by income level established by the regional government pursuant to State Housing Element Law. When there is a shortfall in sites with sufficient zoning able to be included in the Site Inventory, the City must rezone or upzone sites in order to incentivize and provide capacity for future units to accommodate the remaining RHNA. In order to meet the RHNA of 10,517 units, the City first reviewed and identified units on opportunity sites that would not require rezoning. However, to accommodate the RHNA shortfall and buffer to comply with No Net Loss Law (California Government Code § 65863), the City identified 30 additional sites that would require rezoning to facilitate development at adequate densities. Of the 30 sites, Planning staff is recommending approval of the changes in land use designation and rezone of 27 sites (totaling 89.13 acres), dispersed across the City to allow for increased housing density.
Findings/Considerations
Please refer to Exhibit A of the Draft Planning Commission Resolution at Attachment A.
ATTACHMENTS
A) Draft Planning Commission Resolution
Exhibit A - Findings/Considerations
Exhibit B-Table of Housing Element Rezone Sites
B) Maps of Each Individual Rezone Site
C) Public Review Draft Housing Element, Table G6-4 - Remaining Share of RHNA
D) Public Comments
E) General Plan EIR Addendum
F) Presentation
G) 1-31-2025 PC Memo - Conflict of Interest Maps for Item E.1 HE Rezones