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ADOPTION OF A MITIGATED NEGATIVE DECLARATION AND AN ORDINANCE FOR THE PREZONING OF 6505 SOUTH MCKINLEY AVENUE (APN 193-020-34) TO INDUSTRIAL, LIMITED ZONING FOR THE PURPOSES OF FUTURE INDUSTRIAL DEVELOPMENT (APPLICATION NO. P23-0125)
recommended action
RECOMMENDATION
It is recommended that the City Council:
1. Adopt a Resolution certifying a Mitigated Negative Declaration for the Project; and
2. Adopt an Ordinance for the Prezoning of Assessor Parcel Number 193-020-34 to Industrial, Limited (IL), and
3. Adopt a Resolution authorizing the filing of an annexation application with the San Joaquin Local Agency Formation Commission; and
4. Authorize the City Manager to take appropriate and necessary actions to carry out the purpose and intent of the approved resolutions and ordinance.
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Summary
The Applicant, GO Industrial, proposes to develop industrial uses on a legal parcel totaling approximately 9.84-acres located west of South McKinley Avenue and south of Arch Airport Road (Project). The proposed project intends to develop the site with one 181,166 square foot building, parking lot areas, landscaping, lighting, drainage facilities, with loading and service areas.
The proposed project site area is currently located within unincorporated San Joaquin County and includes an annexation request for the project site area. The project site is currently vacant with fallow agricultural lands; historically the site has been used for agricultural purposes.
A Mitigated Negative Declaration (MND) was prepared and circulated for a 30-day public review period in compliance with the California Environmental Quality Act (CEQA). Four (4) comment letters were received by the City. After the close of the review period, the Golden State Environmental Justice Alliance rescinded its comment letter. Pursuant to CEQA Guidelines Section 15073, all substantive comments are provided responses in the MND. None of the comments received required any changes to the impact analysis or additional mitigation measures beyond those already identified in the MND.
The project is consistent with the 2040 General Plan Land Use Map designation of Industrial applicable to the site. The project also furthers General Plan policies aimed at attracting and retaining companies that offer high-quality jobs with wages that are competitive with the region and State (Goal LU-4), attracting employment and tax-generating businesses in the City (Policy LU-4.2), and prioritizing development and redevelopment of vacant, underutilized, and blighted infill areas (Policy LU-6.2).
On March 27th, the Planning Commission held a public hearing, heard a presentation by City Staff, received two public comments, and directed staff to prepare two new (additional) conditions of approval that require installation of a trees along the south property line to provide a greater buffer between residential uses, and restrict truck idling on site to a maximum of three minutes with posted signage stating such. The public hearing was continued to April 10, 2025, to allow the Planning Commission to consider the two added conditions. The Planning Commission approved the Design Review with the added conditions and recommended City Council adopt a Mitigated Negative Declaration and Prezoning Ordinance for the site.
DISCUSSION
Background
The subject site consists of one (1) legal parcel (±9.84-acres) identified as Assessor’s Parcel Number 193-020-34 and is located at 6505 South McKinley Avenue, presently within the jurisdiction of the County of San Joaquin with a County zoning designation of Industrial-Limited (Attachment A - Location Map and Aerial Photo).
The site is bounded to the:
• North by lands zoned for and developed with Industrial uses in the City of Stockton; and
• South by lands zoned Industrial-Limited and developed with Industrial uses and Residential-Medium zoning with residential uses in the County of San Joaquin; and
• East by right-of-way and lands zoned and developed with Industrial uses in the City of Stockton; and
• West by vacant lands within the County of San Joaquin zoned Industrial-Limited.
As the project site abuts the incorporated limits of the City of Stockton, there is no City Zoning Map designation currently assigned to it. Zoning Map designations for properties located in the City and referenced above are identified by Attachment B - Zoning Map. The 2040 General Plan Land Use Map designates the subject site as Industrial (Attachment C - General Plan Land Use Map).
Project Description
GO Industrial has applied for all required entitlements to develop the project (Attachment D - Project Plans) (the “Project”). The subject parcel is in the unincorporated County, abutting the City of Stockton city limits. The Project totals approximately 9.84-acres with one (1) proposed industrial warehouse building with a maximum square footage of 184,166 square feet in floor area, along with parking areas, vehicular access, and storm drainage detention areas. Based on the proposed conceptual plan, the Project proposes a maximum of 151 parking stalls distributed throughout the project site and an additional 42 stalls for trucks and trailers.
Access to the proposed Project would be from two (2) driveways proposed along the project frontage of South McKinley Avenue. The northernmost of the two (2) driveways is located closest to the future office space and would provide primary access to the project site. Utility service for the project site, including sewer and water would be provided by the City of Stockton from existing trunk lines adjacent to the site (water) and at Arch Airport Road (sewer). The Project would have an onsite storm drainage system, including collection lines and a detention basis around the site. Runoff collected in the detention basins would be metered into French Camp Slough when capacity is available in the creek. Regulated electrical, gas, and communication utilities would be extended to the project site from existing facilities in the area.
Development of the Project site with warehouse and industrial uses is considered a “Permitted” use under the proposed Industrial, Limited (IL) prezoning and would not require additional discretionary actions. Upon approval, only City of Stockton building permit approvals would remain for the development of the site and construction of a building. Since the Project’s maximum building square footage is 184,166, it would not be subject to Stockton Municipal Code (SMC) Section 16.80.390 (Industrial Warehouse Standards) as it applies to logistics uses with a minimum building size of 400,000 square feet or greater. The project is still subject to all SMC development standards for the Industrial, Limited zoning district and California Building Code requirements. Additionally, the recently adopted Assembly Bill 98 (AB 98, September 2024), which imposes new design and build standards for new or expanded logistics uses across the state, is not applicable to this Project. AB 98 is not applicable to projects subject to a commenced local entitlement process prior to September 30, 2024. This Project’s entitlement process commenced on May 10, 2023.
STAFF ANALYSIS
Prior to approving the Project, the City Council is requested to adopt an Initial Study and Mitigated Negative Declaration (MND), as well as approve the Prezoning request.
Environmental Clearance
An Initial Study and Mitigated Negative Declaration has been prepared for the Project, in accordance with the California Environmental Quality Act (CEQA). Sections 15070 through 15075 of the CEQA Guidelines outline procedures for decision making by the Lead Agency (the City of Stockton) when an MND has been prepared. A Notice of Preparation was published for agency and public review during a 30-day period starting on August 30, 2024. Comments received were then considered in the preparation of the final MND included as Exhibit 1 to the proposed resolution.
Prior to approving a project, the decision-making body of the lead agency shall consider the proposed MND together with any comments received during the public review process. The decision-making body shall adopt the proposed MND only if it finds on the basis of the whole record before it (including the initial study and any comments received), that with the proposed mitigation there is no substantial evidence that the project will have a significant effect on the environment.
The MND identified potentially significant effects under several topic areas and identified and required mitigation through the Mitigation Monitoring Plan that reduced the identified impacts to less than significant, as discussed below:
• Biological Resources: Although no biological resources have been identified on-site, potentially suitable habitat for special status species is present and would be impacted by the Project. Mitigation is identified and required to ensure no such resources are significantly impacted by development of the vacant site. The applicant is required to participate in the San Joaquin Multi Species Habitat Conservation and Open Space Plan (SJMSCP). Compliance with the SJMSCP ensures potentially significant effects to biological resources are reduced to a less than significant level. Additionally, trees will also be removed outside of bird nesting seasons or, if within the nesting season, a biologist will complete a survey to ensure no protected migratory bird nests are present. Development would affect wetlands along French Camp Slough, but these impacts would be mitigated through existing permitting processes. The project may involve removal of Heritage Oak Trees, which will be mitigated through the City’s Heritage Tree Permit process (SMC 16.130).
• Cultural Resources/Tribal Cultural Resources: No archaeological or historical resources were identified on the site, but there is potential for discovery of buried cultural resources, including those related to Native Americans. If cultural resources or human remains are accidentally uncovered, all work is required to cease until their significance is evaluated by a qualified expert and treated in conformance with CEQA Guidelines, and per SMC 16.36.050.
• Geology and Soils: There are no active or potentially active faults or other geologic hazards within or near the Project site. Construction activities on site have the potential to loosen the soil, leaving it exposed to wind and water erosion. Accordingly, the applicant is required to obtain a permit from the City of Stockton and comply with all permit conditions to ensure soil erosion impacts are reduced to less than significant. Additionally, if any paleontological resources are encountered during construction, all construction activities within a 50’ radius of the encounter shall be immediately halted until a qualified paleontologist can evaluate them and follow the protocol set forth in the Mitigation Measures.
• Greenhouse Gas Emissions: There are potentially significant impacts related to greenhouse gas emissions for the Project, as identified in the MND. The applicant is required to implementing Air Quality Improvement Measures, such as compliance with applicable State and San Joaquin Valley Air Pollution Control District rules and regulations, which will reduce the Project’s greenhouse gas emissions to less than significant.
• Transportation: The Project was found to create significant impacts by increasing the Vehicle Miles Traveled (VMT). Mitigation measures are proposed that would eliminate all potentially significant impacts.
By the conclusion of the public review period, the City received four (4) comment letters. After the close of the review period, the Golden State Environmental Justice Alliance rescinded its comment letter. Pursuant to CEQA Guidelines Section 15073, the lead agency must respond to all substantive comments in the MND. None of the comments received required any changes to the impact analysis or additional mitigation measures beyond those already identified in the MND. Additional information regarding said public comments is available later in this report under ‘Public Comments’.
Prezoning
Since the project site is presently located within the County of San Joaquin, annexation must occur and be preceded by “Prezoning” it through a Zoning Map Amendment. The project, therefore, includes a request for Prezoning the site to Industrial, Limited (IL) Zone (Attachment E - Prezoning Description).
The 2040 General Plan Land Use Map designates the project site as Industrial. Pursuant to Table 2-1 (General Plan Relationship to Development Code) of the General Plan, the IL Zone is compatible with the Industrial General Plan Land Use Map designation of Industrial. As reflected in the Proposed Ordinance, all necessary findings can be made to support the proposed Prezoning action.
Upon approval of the Annexation by the San Joaquin Local Agency Formation Commission (LAFCo), the Zoning Map Amendment would become effective and applicable.
Public Comments
As the Project was required to prepare an MND, there was a required public outreach effort during the CEQA process. A Notice of Intent (NOI) was distributed to the public for review and comment on August 30, 2024. This initial noticing period ran 30 days ending September 30, 3024. The City also extended the NOI an additional 30 days to October 20, 2024.
The City received four (4) comment letters from interested parties during that process:
1. Blum Collins & Ho LLP, representing the Golden State Environmental Justice Alliance;
2. Mitchell M. Tsai Law Firm, representing Carpenters Local Union #152;
3. Adams Broadwell Joseph & Cardozo, representing International Brotherhood of Electrical Workers Local 595, Plumbers & Steamfitters Local 442, Sheet Metal Workers Local 104, DC Ironworkers;
4. Central Valley Regional Water Quality Control Board.
One of the letters from the law firm representing the Golden State Environmental Justice Alliance (Blum, Collins & Ho LLP) was officially withdrawn from the record. The Project applicant additionally received written support from the Nor Cal Carpenters Union, as well as from the International Brotherhood of Electrical Workers 595. The letter received from the Central Valley Regional Water Quality Control Board spoke to the Project’s compliance with their adopted standards during construction.
The MND has been prepared pursuant to the requirements of CEQA and the CEQA Guidelines, which culminates the public review process of the environmental document, and includes all correspondence received to date as well as the Notice of Intent posted at the San Joaquin County Clerk’s office, and other material related to the public review of the MND.
At the March 17, 2025, Planning Commission hearing, the Planning Commission had several questions regarding the Project and its proposed mitigation measures. As this Project isn’t subject to the City’s adopted warehouse ordinance, nor is it subject to State Assembly Bill 98 (AB 98) warehouse regulations, the Commission considered the proposed Project and information and requested two additional mitigation measures from the City’s warehouse regulations. Specifically, the Commission requested a development condition be placed on the Project to provide a double row of 15-gallon trees along the southerly property line to protect potential sensitive receptors (existing residential homes) and a condition to limit truck idling to a maximum of 3 minutes with posted signage to ensure adherence and allow for enforcement by the operator. The Planning Commission continued the project hearing to the April 10, 2025, meeting with direction for staff to incorporate the new Conditions of Approval into the proposed resolution for their consideration.
On April 10, 2025, the Planning Commission reviewed the added Conditions of Approval and, by a vote of 6-0, approved the Design Review component of the Project and recommend that the City Council adopt a Mitigated Negative Declaration for the Project; and recommended the City Council adopt an Ordinance for the Prezoning of APN 193-020-34 to Industrial, Limited (IL).
Notice for this project’s City Council public hearing was published in The Record on May 15, 2025, and mailed notices were sent to all property owners within a 300-foot radius at least twenty (20) days prior to the hearing date. As of the writing of this staff report, no written comments have been submitted.
FINANCIAL SUMMARY
Approval of the project would provide additional revenue to the City’s General Fund collected through property taxes and additional revenue to the Development Services Fund collected through building permits.
Attachment A - Location Map and Aerial Photo
Attachment B - Zoning Map
Attachment C - General Plan Land Use Map
Attachment D - Conceptual Project Plans
Attachment E - Prezoning Description