After taking public testimony, staff recommends the City Council take the following course of action:

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1 City Council Agenda May 5, 2015 Public Hearings Agenda Item No. B.04 Reviewed by City Mgr s office: /KLM Memo to: From: Manteca City Council Erika E. Durrer, Senior Planner Date: April 22, 2015 Subject: A request by Pillsbury Road Partners, LLC, for the South of Woodward Avenue (SOWA) project area including the development of Atherton Homes at Woodward Park I (AHWPI) and Atherton Homes at Woodward Park II (AHWPII). This request includes consideration of an Environmental Impact Report (EIR), Prezone, Annexation, Vesting Tentative Subdivsion Maps (AHWPI & AHWPII), and Development Agreements (AHWPI & AHWPII). Recommendation: After taking public testimony, staff recommends the City Council take the following course of action: 1. Certify the Final Environmental Impact Report, Findings of Fact and Statement of Overriding Consideration, and Mitigation Monitoring and Reporting Program for the South of Woodward Avenue Project (SCH# ) as adequate environmental documentation for the project, and authorize staff to file a Notice of Determination with the San Joaquin County Clerks office. 2. Waive the first reading by substitution of the title and introduce Ordinance No. 1562, Prezoning the entire acre project area to R-1 (Single-Family Residential), to be consistent with the LDR (Low Density Residential) General Plan Land Use Designation. 3. Adopt a resolution authorizing staff to make application to San Joaquin County Local Agency Formation Commission (LAFCo) for annexation of the entire acre project area. 4. Adopt a resolution making the required findings to approve a Vesting Tentative Subdivsion Map for Atherton Homes at Woodward Park I, subject to Development Review conditions dated April 14, 2015.

2 5. Waive the first reading by substitution of the title and introduce Ordinance No. 1563, for adoption of the Development Agreement for Atherton Homes at Woodward Park I. 6. Adopt a resolution making the required findings to approve a Vesting Tentative Subdivsion Map for Atherton Homes at Woodward Park II, subject to Development Review conditions dated April 14, Waive the first reading by substitution of the title and introduce Ordinance No. 1564, for adoption of the Development Agreement for Atherton Homes at Woodward Park II. Background: PROJECT DESCRIPTION: The overall South of Woodward Avenue (SOWA) project site is made up of three distinct sites referred to as: 1) Atherton Homes at Woodward Park I (AHWPI) 2); Atherton Homes at Woodward Park II (AHWPII); and 3) DeJong property (see Attachment 1 - Project Location Map). The total single-family residential development potential for the overall project would be 706 units, with 171 units proposed for the Atherton Homes at Woodward Park I site, 185 units proposed for the Atherton Homes at Woodward Park II site, and 350 units potential for the DeJong site. The current request includes consideration of the EIR and supporting documents as adequate environmental documentation for the project; prezoning of the entire SOWA area to R-1 (Single-Family Residential); annexation of the SOWA area to the City of Manteca; approval of the Vesting Tentative Subdivision Map for AHWPI to subdivide the approximately 54.2 acre site into 171 single-family residential lots and create an approximately 3.53-acre park; approval of the Vesting Tentative Subdivision Map for AHWPII to subdivide the approximately acre site into 185 singlefamily residential lots and create an approximately 4.3-acre park; and approval of Development Agreements for each AHWPI and AHWPII. SITE DESCRIPTION: The approximately acre project site is located within the jurisdiction of San Joaquin County, and in the primary Sphere of Influence for the City of Manteca. The site currently has a county zoning designation of AG-40 (Agriculture), and a Manteca General Plan Land Use designation of LDR (Low Density Residential). The SOWA area is generally located at the southwest corner of the intersection of Atherton Drive and Woodward Avenue, and is otherwise identified by the following APNs , , ; , , and The site bounded to the north by Woodward Avenue and the previously entitled residential projects: Diego Country Estates, Lundbom Estates and Winters

3 Estates projects; to the west by the developing residential project Pillsbury Estates-Orchard Valley and existing Woodward Park residential projects; to the east the previously approved Austin Road Business Park and Residential Community Master Plan area; and to the south by agricultural lands. ENVIRONMENTAL REVIEW: The South of Woodward Avenue Project Environmental Impact Report (EIR) was prepared for this project to identify potential environmental impacts relating to development of the site, and mitigate them to the greatest extent feasible. As mandated by the California Environmental Quality Act (CEQA), a Notice of Completion (NOC) of the Draft EIR was advertised, posted and mailed to the City s list of individuals and agencies that have requested notification of environmental actions of the City. The NOC and Draft EIR were also submitted to the Office of Planning and Research State Clearinghouse for distribution to the appropriate State agencies for review and comment. The comment period was open from November 21, 2014 to January 5, The City received 10 comment letters in response to the Draft EIR from the following: Caltrans, Central Valley Regional Water Quality Control Board, Manteca Unified School District, San Joaquin Council of Governments, San Joaquin County Community Development, San Joaquin County Environmental Health Department, United States Department of the Army, Kerry Harris of Neighbors United, Martin Harris and State of California Clearinghouse and Planning Unit. These comments were considered and addressed in the Final EIR as noted below. There are now three additional elements, including the Final Environmental Impact Report, the Mitigation Monitoring and Reporting Program (MMRP) and the Findings of Fact and Statement of Overriding Consideration. The Final EIR is a compilation of the comments that were received from individuals that reviewed the Draft EIR, and the responses to those comments. Copies of the Final EIR were distributed to the commenting parties for their review on March 5, The MMRP is essentially a consolidation of the mitigation measures identified in the Draft EIR, detailing who is responsible for their implementation, when the mitigation must be completed, and who is responsible for verifying the mitigation is complete. The Findings of Fact and Statement of Overriding Considerations are the statements supporting the mitigation of identified impacts, a list of the impacts that cannot be completely mitigated (significant and unavoidable), and a list of compelling reasons why the City may approve the project in light of the significant and unavoidable impact (overriding considerations). The EIR identified that the project would result in project-level significant and unavoidable adverse impacts in the following areas: scenic resources, loss of agricultural land, and transportation, traffic, and circulation.

4 PREZONE AND ANNEXATION: The project site is currently located within San Joaquin County and has a San Joaquin County General Plan land use designation of General Agriculture (A/G). The proposed project includes a request for annexation of the acre project site to the City of Manteca, which requires San Joaquin County Local Agency Formation Commission (LAFCo) approval. In addition, in order to avoid the creation of a County island area, the two nonparticipating parcels located immediately west of the Atherton Homes at Woodward Park I site, along Pillsbury Road, have been included in the proposed annexation area. It should be noted, however, that the two parcels are not included as part of the proposed project improvements. Attachment 1 illustrates the proposed annexation area. It should be noted that the project site is currently served by the Lathrop-Manteca Fire Protection District. Upon annexation of the proposed project area into the City of Manteca, the Manteca Fire Department would take responsibility for providing fire and emergency medical response services to the proposed project area. As a result, the project includes detachment from the Lathrop- Manteca Fire Protection District, which requires San Joaquin County LAFCo approval. The Manteca General Plan designates the entire project site as Low-Density Residential (LDR), allowing for 2.1 to 8.0 residential units per gross acre, which is consistent with the residential densities proposed for the overall project site. Therefore, a General Plan Amendment is not needed. Consistent with the Manteca General Plan Low-Density Residential (LDR) designation for the project site, each of the three sites and non-participating properties would be Prezoned to the R-1 (Single-Family Residential) zoning district. VESTING TENTATIVE SUBDIVISION MAP: Atherton Homes at Woodward Park I: The Atherton Homes at Woodward Park I site encompasses the southern portion of the overall proposed project site and consists of approximately 54.2 acres of agricultural land, formerly utilized for the cultivation of row crops and an almond orchard. The western boundary of the Atherton Homes at Woodward Park I site wraps around two 1.06-acre parcels (APNs and -02), which each contain an existing rural residence. It should be noted that the two parcels with existing residences are included in this for prezoning and annexation purposes only, and are not included as part of the proposed project improvements. The vesting tentative map for the 54.2-acre Atherton Homes at Woodward Park I site includes 171 single-family lots, a 3.53-acre park basin, which includes a 1-acre tot lot, landscaped entry and Class I bike path with associated greenbelt (Parcel B), which would connect the park to the

5 future extension of Atherton Drive. The proposed lot sizes range from a minimum of 7,370 square feet to a maximum of 18,181 square feet. The proposed map for Atherton Homes at Woodward Park I indicates the project would be completed in two phases. Phase 1 would consist of 101 lots and comprise the western section of the site, while Phase 2 would consist of 70 lots and comprise the remaining eastern section. Staff finds this project to be consistent with development as proposed in the City s General Plan, and meets the requirements of the City s Zoning and Subdivision Ordinances. This project was reviewed and conditioned by the appropriate City departments and divisions, as well as other responsible agencies and utilities. The project shall be subject to conditions of approval, and subject to the environmental mitigation measures associated with the certified EIR. Staff finds that, as conditioned, the proposed project is consistent with City codes and requirements. Atherton Homes at Woodward Park II: The Atherton Homes at Woodward Park II site encompasses the northwestern portion of the overall proposed project site and is comprised of approximately 57.3 acres of agricultural land. The vesting tentative map for the 57.3-acre Atherton Homes at Woodward Park II site includes 185 singlefamily lots for development of single-family homes and one 4.3-acre park basin. Improvements will include grading, modifying the existing irrigation system, and construction of public streets and street lighting, all to City of Manteca standards. The proposed map indicates the Atherton Homes at Woodward Park II project would be completed in three phases. Phase 1 would consist of 64 lots and make up the southern portion of the project site; Phase 2 would consist of 69 lots and comprise the northern and a portion of the center section of the site; and Phase 3 would consist of the remaining 52 lots, split into two sections, and make up the central western and eastern portions of the site. Staff finds this project to be consistent with development as proposed in the City s General Plan, and meets the requirements of the City s Zoning and Subdivision ordinances. This project was reviewed and conditioned by the appropriate City departments and divisions, as well as other responsible agencies and utilities. The project shall be subject to conditions of approval and subject to the environmental mitigation measures associated with the certified EIR. Staff finds that, as conditioned, the proposed project is consistent with City codes and requirements. DEVELOPMENT AGREEMENT: The Developer has made application for two separate Development Agreements (DA) for each project: AHWPI and to AHWPII. The following summarizes the main components of each DA:

6 The DA term lasts one year following the Project Buildout or the 10th anniversary of the Effective Date, whichever occurs first. The Developer has been granted Growth Allocations on a specified schedule. This allows for the project to develop with guaranteed allocations outside of the Growth Management Ordinance process, but still subject to the 3.9% growth cap. The Developer will pay for the formation of a Community Facilities District (CFD), which will help to fund the maintenance costs associated with park and lighting improvements, as well as public safety personnel services. The Developer has agreed to pay Development Agreement Fees beyond those impact fees typically associated with development, as well as certain Impact Fees in the negotiated amounts as set forth in the Development Agreement. Minor modifications to the Development Agreement can be made by the City Manager if the changes do not materially affect the purpose of the agreement. The City Manager, in consultation with legal staff, shall decide whether a requested modification is an Inconsistent Modification or a Consistent Modification. Elements of the DA may be transferred and assigned to another party with City consent. Fiscal Impact: There is no impact to the City or the City's General Fund by approving this project. However, based upon the proposed terms of the development agreement, some additional funding will be available to help support ongoing City services. ATTACHMENTS: 1. Vicinity Map 2. Draft EIR SOWA 3. Final EIR SOWA 4. Findings of Fact, Statement of Overriding Considerations SOWA 5. Resolution No. R Certifying the SOWA Project EIR 6. Ordinance No For Prezone with attachments 7. Resolution No. R2015- Authorizing staff to make application to LAFCo 8. Vesting Tentative Subdivsion Map AHWPI 9. Vesting Tentative Subdivsion Map AHWPII

7 10. Resolution No. R2015- Approving Vesting Tentative Subdivision Map for AHWPI 11. Resolution No. R2015- Approving Vesting Tentative Subdivision Map for AHWPII 12. Ordinance No for adoption of DA for AHWPI 13. Development Agreement for AHWPI 14. Ordinance No for adoption of DA for AHWPII 15. Development Agreement for AHWPII 16. Letter received on March 23, 2015 from Sandy and Barry Crosby, and letter received on March 24, 2015 from Neighbors United 17. Minutes from the Planning Commission Meeting of March 24, Draft Minutes from the Planning Commission Meeting of April 14, 2015