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APPROVAL OF AN ADDENDUM TO THE ENVIRONMENTAL IMPACT REPORT FOR A WATER SUPPLY ASSESSMENT AND FINAL APPROVAL FOR CANCELLATION OF WILLIAMSON ACT CONTRACT FOR THE SANCHEZ-HOGGAN PROJECT (APNS 181-100-09, 179-200-27) (P19-0691)
recommended action
RECOMMENDATION
Staff recommends the City Council:
a) Adopt a resolution certifying an Addendum to the Sanchez-Hoggan Project Environmental Impact Report (EIR) #2020020006 pursuant to the California Environmental Quality Act (CEQA) Section 15164 that addresses Water Supply Assessment; and
b) Adopt a Resolution approving the Final Williamson Act Contract Cancellation for the Sanchez Parcel (APN 181-100-09) (P19-0691).
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Summary
On June 23, 2020, City Council approved the Sanchez-Hoggan Project that proposes the development of industrial and warehouse uses on 169.77 acres. It could result in approximately 3 million square feet of building space and yield between 1,200 and 1,500 employment positions. Amongst Council’s approvals was a certification of a Final Environmental Impact Report (EIR) and a tentative cancellation of a Williamson Act Contract for the Sanchez parcel (APN 181-100-09).
Subsequent to the Council’s certification of the Project EIR, it was discovered that a Water Supply Assessment (WSA) and reference to state regulation SB610 that requires these assessments, was inadvertently left out of the EIR. To correct the oversight, a WSA was prepared and an addendum to the certified Sanchez-Hoggan Project EIR is proposed that incorporates the WSA and discussion as new information. This new information supports the water supply analysis contained in the certified EIR and does not change the project or create any new environmental effects or a substantial increase in the severity of previously identified significant impacts.
Also, following the Council’s approval of a tentative cancellation of a Williamson Act contract for the Sanchez parcel, staff carried out the remaining steps stipulated in the Stockton Municipal Code (SMC) Section 16.236.030 to allow for final cancellation. This included notifying the California Department of Conservation (DOC) of the tentative cancellation request and receiving its confirmation to proceed. City Council is now asked to consider and approve the final request for the Williamson Act contract cancellation.
DISCUSSION
Background
On June 23, 2020, City Council approved the Sanchez-Hoggan Project that proposes development of industrial and warehouse uses on two vacant parcels: the 149.01 acre Sanchez property (APN 181-100-09) located at the northwest corner of Arch Road and Austin Road and the 20.76 acre Hoggan property (APN 179-200-27) located north of Frontier Way and southeast of North Littlejohn Creek. Approvals included an Environmental Impact Report, Filing for Annexation with the Local Agency Formation Commission (LAFCO), Prezoning and a tentative request for Williamson Act Contract cancellation for the Sanchez parcel. (Resolutions 2020-06-23-1501-01, -02 and -03; and Ordinance 2020-06-23-1501).
State law, more specifically Senate Bill 610 (Chapter 643, stats. 2001), requires a water purveyor’s legislative body to approve a WSA for any proposed industrial park with more than 1,000 persons on more than 40 acres of land or having more than 650,000 square feet of floor area. While the Sanchez-Hoggan Project meets this criteria and included a water capacity analysis in the EIR for the 169.77-acre Project, compliance with Senate Bill 610 (SB 610) requires the WSA to be prepared and explicitly referenced in the Final EIR and approved by the purveyor’s legislative body. The City’s Municipal Utilities Department prepares Water Supply Assessments. Pursuant to the California Environmental Quality Act (CEQA) Guidelines Section 15164 (Addendum to an EIR or Negative Declaration) an addendum to the certified Sanchez-Hoggan Project EIR is needed to clarify compliance with SB 610.
Williamson Act Cancellation
The Sanchez property is undeveloped and, in recent years, has been planted with row crops and is under a Williamson Act contract. The Williamson Act of the State of California (officially, the California Land Conservation Act of 1965) is a California law that provides relief from property tax to owners of farmland and open-space land in exchange for a ten-year agreement that the land will not be developed or otherwise converted to another use.
Consistent with State law, SMC Chapter 16.236 Williamson Act Regulations provides for a local process for the initiation and processing of a notice of nonrenewal or cancellation of Williamson Act contracts in compliance with State Law. The Applicant is requesting cancellation of the contract to establish industrial uses, consistent with the General Plan land use map.
The 2040 General Plan envisions the project site and surrounding areas to eventually develop with industrial land uses on properties that may have Williamson Act Contracts. To accommodate this land use change, the General Plan Environmental Impact Report (GPEIR) analysis projected the cancellation of existing Williamson Act contracts within the General Plan planning area. More specifically, GPEIR, Figure 4.2-4, identifies the Sanchez parcel among other surrounding parcels that are anticipated to convert from agricultural to industrial and result in Williamson Act Contract cancellations or non-renewals. Therefore, the Williamson Act Contract cancellation request is consistent with the General Plan vision for the proposed project area.
Present Situation
The Applicant filed an application with the Municipal Utilities Department (MUD) to prepare a WSA for the Sanchez-Hoggan Project. MUD prepared the WSA (dated August 2020) and determined that sufficient water supplies exist to meet the water demands of the development Project. The Applicant prepared an addendum to the certified EIR that incorporates the WSA and SB 610 analysis within the existing water capacity analysis section from the EIR. There are no new environmental effects or a substantial increase in the severity of previously identified significant impacts because of the addendum. Staff recommends that City Council approve the addendum and WSA.
Following Council’s approval of the tentative cancellation of the Williamson Act Contract for the Sanchez parcel, staff carried out remaining process defined by the SMC. The tentative cancellation request was published in the local newspaper (Stockton Record), recorded on the property, and sent to the California Department of Conservation (Attachment A). Staff is recommending City Council’s final approval of the Williamson Act contract cancellation to allow the property owner to pay all applicable taxes, receive a Certificate of Completion, and then proceed with site development.
Public Comments
No public comments have been filed for the final Williamson Act Contract cancellation or addendum that addresses Water Supply Assessment.
NOTICE
Notice for the City Council public hearing for this request was published in The Record on August 4, 2020, and mailed notice was sent to all property owners within a 300-foot radius at least ten days prior. As of the writing of this staff report, no written comments have been submitted.
FINANCIAL IMPACT
All application fees were paid to cover staff time for processing the requested actions. The proposed Project will result in a positive effect on City Tax General Fund revenues. Additional Utility connection and Public Facilities fees will be collected at the time building permits are obtained to construct the Project. Plan check and permit fees will be generated based on the building construction valuation determined at the time of building permit filing/issuance and received in Development Services Fund.
Attachment A - Williamson Act Cancellation Notification to State