STAFF REPORT: #11-18 AGENDA ITEM:

CITY OF MERCED Planning & Permitting Division STAFF REPORT: #11-18 AGENDA ITEM: 4.3 FROM: Kim Espinosa, PLANNING COMMISSION Planning Manager MEETING DATE: Nov. 9, 2011 PREPARED BY: Julie Nelson, CITY COUNCIL Planner MEETING DATE: Dec. 19, 2011 (Tentative) SUBJECT: ACTION: General Plan Amendment #11-04, Zone Change #413, Establishment of Planned Development (P-D) #73, and Site Utilization Plan Revision #2 To Residential Planned Development (RP-D) #63, initiated by Golden Valley Engineering, applicant for Bellevue Ranch Paseo, LLC, property owner. This application involves a request to change the General Plan designation from Low-Medium Density Residential (LMD) to Neighborhood Commercial (CN), a Zone Change from Residential Planned Development (RP-D) #63 to Planned Development (P-D) #73, and the establishment of Planned Development (P-D) #73 for the western half of the development previously known as the Paseo subdivision to allow a 39,400 square foot retail center at the northeast corner of Barclay Avenue and Bellevue Road. The request also involves a Site Utilization Plan Revision to Residential Planned Development (RP-D) #63 to allow a change from single-family detached dwelling units to zero-lot line singlefamily homes at a density of 8.5 dwelling units per acre, generally located at the northwest corner of G Street and Bellevue Road. *PUBLIC HEARING* PLANNING COMMISSION: Recommendation to City Council 1) Environmental Review #11-22 (Negative Declaration) 2) General Plan Amendment #11-04 3) Zone Change #413 4) Establishment of Planned Development (P-D) #73 5) Site Utilization Plan Revision #2 to Residential Planned Development (RP-D) #63 CITY COUNCIL: Approve/Disapprove/Modify 1) Environmental Review #11-22 (Negative Declaration) 2) General Plan Amendment #11-04 3) Zone Change #413 4) Establishment of Planned Development (P-D) #73 5) Site Utilization Plan Revision #2 to Residential Planned Development (RP-D) #63

Planning Commission Staff Report #11-18 Page 2 November 9, 2011 SUMMARY This project consists of an approximately 17-acre parcel located on the north side of Bellevue Road between G Street and Barclay Way (Attachment A). The property is currently zoned Residential Planned Development (RP-D) #63 with a Low/Medium Density Residential (LMD) General Plan designation. Merced Union High School District is currently constructing a new high school just to the north of the site and the UC Merced campus is located approximately 2 miles to the east of the proposed development. The applicant is requesting a General Plan Amendment to Neighborhood Commercial (CN) and a Zone Change to Planned Development (P-D) #73 for the western half (approximately 8.5 acres) of the property. In addition, the request includes Site Utilization Plan Revision #2 to Residential Planned Development (RP-D) #63 to modify the residential dwelling units on the eastern 8.5 acres (approximately) from detached single-family dwellings to attached singlefamily dwellings. The number of lots and resulting number of units proposed would be the same as what was previously approved for this portion of the development. A site plan may be found at Attachment B. Bellevue Road and G Street are arterial streets. Barclay Way is a collector street. In keeping with General Plan Policy L.2.7.f, commercial developments are generally not allowed on the corner of two arterials. Because the project is being divided and leaving the residential development on the corner of the arterial streets, this project does not violate this General Plan Policy. The Neighborhood Commercial development will allow most permitted and conditional uses as defined by the Neighborhood Commercial zone. However, in order to preserve the small neighborhood environment and to reduce traffic impacts on the area, certain uses would not be allowed. These uses are listed on page 12 of this report. Access into the site will not change. The development has one access point on Barclay Way. This access was part of the previous approval. Although it is not ideal to only have one access into a commercial development, the small scale of the commercial uses allows this one access point to be sufficient and reduces impacts on the arterial streets. Fire trucks and emergency vehicles have an additional entry point from Bellevue Road in case of an emergency. The Planning Commission s action is to make a recommendation to the City Council regarding this project. Should the Planning Commission vote to recommend approval to the City Council, Planning staff recommends the conditions contained in this staff report be included. RECOMMENDATION If the Planning Commission wishes to recommend approval of this project to the City Council, the Planning Commission should recommend approval of Environmental Review #11-22 (Negative Declaration), General Plan Amendment #11-04, Zone Change #413, Establishment of Planned Development (P-D) #73, and Site Utilization Plan Revision #2 to Residential Planned Development (RP-D) #63 (including the adoption of the Resolution at Attachment G) subject to the following conditions:

Planning Commission Staff Report #11-18 Page 3 November 9, 2011 *1) The proposed project shall be constructed/designed as shown on Exhibit 1 (site plan) and Exhibit 2 (elevations) -- Attachments B, C, and D except as modified by the conditions. *2) The proposed project shall comply with all standard Municipal Code and Subdivision Map Act requirements as applied by the City Engineering Department. *3) The Project shall comply with the conditions set forth in Planning Commission Resolution #2885 and City Council Resolution #2006-83 for General Plan Amendment #06-04, City of Merced Ordinance #2227 for Zone Change #395 and the Establishment of Residential Planned Development (RP-D) #63, and Planning Commission Resolution #2896 for Conditional Use Permit #1096, and Tentative Subdivision Map #1294, previously approved for this project. *4) All other applicable codes, ordinances, policies, etc., adopted by the City of Merced shall apply. *5) Approval of the General Plan Amendment, Zone Change, Planned Development Establishment, and Site Utilization Plan Revision are subject to the applicant's entering into a written (developer) agreement that they agree to all the conditions and shall pay all City and school district fees, taxes, and/or assessments, in effect on the date of any subsequent subdivision and/or permit approval, any increase in those fees, taxes, or assessments, and any new fees, taxes, or assessments, which are in effect at the time the building permits are issued, which may include public facilities impact fees, a regional traffic impact fee, Mello-Roos taxes whether for infrastructure, services, or any other activity or project authorized by the Mello-Roos law, etc. Payment shall be made for each phase at the time of building permit issuance for such phase unless an Ordinance or other requirement of the City requires payment of such fees, taxes, and or assessments at an earlier or subsequent time. Said agreement to be approved by the City Council prior to the adoption of the ordinance, resolution, or minute action. *6) In accordance with Merced Municipal Code Section 20.42.130, the developer shall submit a development schedule for this project indicating the date construction is anticipated to start and the length of time expected to complete each phase. This schedule shall be submitted within three months of the final approval. *7) The developer/applicant shall indemnify, protect, defend (with counsel selected by the City), and hold harmless the City, and any agency or instrumentality thereof, and any officers, officials, employees, or agents thereof, from any and all claims, actions, suits, proceedings, or judgments against the City, or any agency or instrumentality thereof, and any officers, officials, employees, or agents thereof to attack, set aside, void, or annul, an approval of the City, or any agency or instrumentality thereof, advisory agency, appeal board, or legislative body, including actions approved by the voters of the City, concerning the project and the approvals granted herein. Furthermore, developer/applicant shall indemnify, protect, defend, and hold harmless the City, or any agency or instrumentality thereof, against any and all claims, actions, suits, proceedings, or judgments against any governmental entity in which developer/applicant s project is subject to that other governmental entity s approval and a condition of such approval is that the City indemnify and defend (with counsel selected by the City) such governmental

Planning Commission Staff Report #11-18 Page 4 November 9, 2011 entity. City shall promptly notify the developer/applicant of any claim, action, or proceeding. City shall further cooperate fully in the defense of the action. Should the City fail to either promptly notify or cooperate fully, the developer/applicant shall not thereafter be responsible to indemnify, defend, protect, or hold harmless the City, any agency or instrumentality thereof, or any of its officers, officials, employees, or agents. *8) The developer/applicant shall construct and operate the project in strict compliance with the approvals granted herein, City standards, laws, and ordinances, and in compliance with all State and Federal laws, regulations, and standards. In the event of a conflict between City laws and standards and a State or Federal law, regulation, or standard, the stricter or higher standard shall control. *9) Community Facilities District (CFD) formation is required for annual operating costs for storm drainage, any landscaping within City of Merced rights-of-way, street trees, and street lights. CFD procedures shall be initiated before final permit approval. Developer/Owner shall submit a request agreeing to such a procedure, waiving right to protest and post deposit as determined by the City Engineer to be sufficient to cover procedure costs and maintenance costs expected prior to first assessments being received. *10) The developer shall provide a land use diagram of the approved site plan showing all designated uses, approximate size of all buildings, parking, etc. This map will become the Official map for Planned Development #73. One hard copy map (36 x 24 ) and an electronic copy compatible with the City s Geographic Information System (GIS) shall be provided. An additional map (both hard copy and electronic) meeting the above criteria shall be provided to show the changes made to Residential Planned Development (RP-D) #63. *11) The developer shall work with the City s Refuse Department to appropriately place all refuse containers. Approval of these locations shall be included at the Conditional Use Permit stage. *12) The developer shall work with the City s Refuse Department to insure proper pick up of landscape waste (green container waste) is removed. If the previous agreement approved for the residential units is determined to be sufficient, this agreement may remain in force. *13) Appropriate turning radii shall be provided within the parking areas and streets to allow for Fire Department access. *14) All signing shall be in compliance with the North Merced Sign Ordinance and Chapter 20.22.020 (Signs within a C-N Zone). *15) Prior to building permit issuance for any buildings in the commercial portion of the development, the developer shall submit an application for a lot merger to combine the individual lots into lots suitable for the commercial development. *16) Parking lot trees shall be installed to provide a 50 percent shade cover in the parking lot area. However, this may not be achieved by installing less than the minimum number of trees at a ratio of at least one tree for each six parking spaces.

Planning Commission Staff Report #11-18 Page 5 November 9, 2011 *17) Parking lot lighting shall be shielded or oriented in a way that does not allow spill-over onto adjacent lots and shall be in compliance with the California Energy Code requirements. 18) The approval of Planned Development #73 includes allowing all permitted uses within a Neighborhood Commercial (C-N) zone and all conditional uses of the C-N zone with the exception of the following: Convenience Market with Gasoline Sales Auto Service Station Drive-in or Drive-through Restaurants Carwash 19) The developer shall install a right-hand turn lane at the intersection of Bellevue Road and G Street. This lane shall be installed per City Standards. The developer shall work with the City Engineer on the design. 20) The developer shall work with Merced County Transit (operators of The Bus ) and the UC Merced Transportation Service (operator of the CatTracks transit service) to determine an appropriate location for a transit stop. The developer shall be responsible for the installation of the transit stop in compliance with all applicable standards. 21) It is highly encouraged that the transit shelter be constructed using the same high-quality materials as used within the development. 22) The commercial portion of this project shall comply with the Development Standards established for Planned Development (P-D) #73 and the residential portion shall comply with the Development Standards for Residential Planned Development (RP-D) #63. 23) A minimum 6-foot-high concrete block wall shall be constructed between the parking lot on the north side of Portico Drive and the adjacent residential uses. Dense landscaping shall be provided on both sides of the wall. This landscaping shall be sufficient to prevent graffiti being painted on the wall or the wall shall be treated to allow easy removal of graffiti. 24) Dense landscaping sufficient to shield the residential uses from vehicle headlights shall be installed on the east side and along the north side (east of the driveway entrance on Portico Drive) of the parking lot between Mosaic and Countryside Avenues. 25) Landscaping shall be provided around the commercial buildings in keeping with the approved elevations. Detailed landscape plans shall be submitted at the Conditional Use Permit stage. 26) Conditional Use Permit (CUP) approval shall be required prior to the construction of the commercial buildings. Site Plan Review (or CUP at the discretion of the Director of Development Services) shall be required prior to the construction of the dwelling units to insure compliance with all approved design standards. 27) All buildings shall be constructed in accordance with Exhibits 1, 2, and 3 (Attachments B, C, and D of Staff Report #11-18). All construction shall be of high-quality materials and the color palette shall be approved at the Conditional Use Permit Stage. 28) No fraternity or sorority houses shall be allowed within Planned Development (P-D) #73 or Residential Planned Development (RP-D) #63.

Planning Commission Staff Report #11-18 Page 6 November 9, 2011 29) Bicycle racks shall be installed for the commercial portion of the development. The number of bicycle racks provided is encouraged to be equal to 10 percent of the number of vehicle spaces, but, at a minimum, shall be equal to 5 percent of the vehicle spaces. 30) Any outdoor seating areas shall comply with all ADA requirements. 31) Any outdoor furniture, umbrellas, etc., shall not contain advertising. Any advertising done in such a manner shall be counted toward the overall sign allowance for each tenant. 32) Sufficient lighting shall be provided for the outdoor gathering areas (i.e. the pagoda and fountain area) to maintain a safe environment. However, the lighting shall be oriented so as not to interfere with traffic. (*) Denotes non-discretionary conditions. PROJECT DESCRIPTION The applicant is requesting to change the Zoning and General Plan designation for the western 8.5-acres (approximately) of the site previously approved for the Paseo subdivision at the northwest corner of G Street and Bellevue Road. The requested change would allow the zoning to be changed for the western 8.5 acres of land from Residential Planned Development (RP-D) #63 to Planned Development (P-D) #73. The eastern 8.5 acres would remain zoned for Low- Medium Density (LMD) Residential development. The proposed project will include a small neighborhood commercial center with two buildings (one 20,000 s.f. and the other 19,400 s.f.) and 85 zero-lot line single-family homes. No specific tenants have been identified at this point for the commercial portion of the project, but uses could include small café-type or fast-food restaurants without drive-through windows and service and retail type uses that could serve the neighborhood, the future high school, and the UC Merced campus. The project design includes many elements to make the site pedestrian and bicycle friendly. The bike path that was previously approved will remain. Several trellises will be installed throughout the commercial development. A water fountain feature is proposed for the corner of Barclay Way and Bellevue Road, and a pagoda would be constructed at the corner of Promenade Avenue and Montage Drive. In addition, a small open space area is proposed along Bellevue Road which incorporates the bike path with a pedestrian path and continues throughout the commercial development. A large open space area is situated in the middle of the commercial development. This area was approved for a drainage basin and must continue to function as such. Therefore, this area will remain unchanged for the most part, with the exception of the addition of a few trellises and the pagoda to made the area more pedestrian friendly. The design incorporates the use of angled on-street parking in front of the commercial buildings. In addition, two large parking lots are provided. There are also a number of on-street parallel parking spaces lining the streets of the entire development.

Planning Commission Staff Report #11-18 Page 7 November 9, 2011 Surrounding Land North South East West Surrounding Uses (Attachment A) Existing Use Zoning of Land Designation El Capitan High School (currently under P-D #42 construction) Residential (across Bellevue Road) Vacant (across G Street) Vacant (across Barclay Way) P-D #42 County (Ag Residential) P-D #42 City General Plan Land Use Designation School Low-Density Residential (LD)/ Low-Medium Density Residential (LMD) Low-Density Residential (LD) Commercial Office (CO) BACKGROUND This property was annexed into the City in 2000 in connection with Bellevue Ranch #2 Annexation. In 2006, the City approved General Plan Amendment #06-04 and Site Utilization Plan Revision #1 to Residential Planned Development (RP-D) #63, which changed the land use designation from Low Density Residential to Low-Medium Density Residential to allow the construction of 156 small-lot single-family dwellings on approximately 17.64 acres. Subsequently, Conditional Use Permit #1096 and Tentative Subdivision Map #1294 were approved. After all approvals were received, 6 homes were constructed on the corner of Bellevue Road and G Street. Unfortunately, the housing market began its fall shortly thereafter and no additional homes have been constructed. Although only 6 homes were constructed, all the improvements were installed (i.e., streets, curb, gutter, sidewalk, etc.). The remaining single-family lots have remained vacant. FINDINGS/CONSIDERATIONS: General Plan Compliance and Policies Related to This Application A) The proposed project complies with the General Plan designation of Low-Medium Density (LMD) Residential and if the proposed General Plan Amendment is approved, would comply with the General Plan designation of Neighborhood Commercial. Land Use -3.2.a Encourage infill of vacant parcels. Land Use -2.7.b Commercial centers shall be designed to provide direct vehicular and pedestrian access from surrounding neighborhoods. In no case shall trips which could be internal (from adjacent neighborhood to center) be forced onto an arterial. Land Use -2.7.e Commercial developments shall be designed to encourage pedestrian, bicycle, and transit access.

Planning Commission Staff Report #11-18 Page 8 November 9, 2011 Land Use -1.1.a Promote mixed use development combining compatible employment, service and residential elements. Establishment of Planned Development #73 B) Per Merced Municipal Code (MMC) Section 20.42.030, the Planning Commission may recommend the establishment of a Planned Development (P-D) zone, and the City Council, after a public hearing, may, by ordinance, establish a P-D zone provided they find that the facts submitted with the application and presented at the public hearings establish: 1) That each individual unit of the development if built in stages, as well as the total development, can exist as an independent unit capable of creating a good environment in the locality and being in any stage as desirable and stable as the total development. Finding: The Merced real estate market economy will determine the phases of project construction. Undeveloped portions of the site will be kept clean of debris. Unified signage and landscaping will also be incorporated into the project design. Each individual unit of the development can exist as an independent unit and will contribute positively to the neighborhood. 2) That the uses proposed will not be a detriment to the present and proposed surrounding land uses, but will enhance the desirability of the area and have a beneficial effect. Finding: The applicant feels the proposed Neighborhood Commercial uses will enhance the surrounding neighborhood and create a viable economic project. The uses will support the UC Merced Campus, the new High School campus, and the surrounding residential uses. There are no other commercial uses within an approximately 2-mile radius of the site. Although a large (50-acre) Regional Commercial site is designated on the south side of Bellevue Road on both sides of M Street. 3) That any deviation from the standard ordinance requirements is warranted by the design and additional amenities incorporated in the development plan which offer certain unusual redeeming features to compensate for any deviations that may be permitted. Finding: To encourage internal and external pedestrian use and access, structures within the site will be linked with pedestrian paths and connectors. A water fountain will be constructed at the corner of Bellevue Road and Barclay Way, and a Pagoda will be built at the corner of Promenade Avenue and Montage Drive. The open-space area/drainage basin could be used for public gatherings when not needed for water storage. In addition, the neighborhood commercial uses will provided needed products and services to the area.

Planning Commission Staff Report #11-18 Page 9 November 9, 2011 Traffic/Circulation C) Because specific tenants are not known at this time, traffic generation was based on the rate for Specialty Shopping Center, Coffee/Donut Shop without a drive-through window and Fast Food Restaurant without a drive-through window as determined by the 8 th Edition of the International Traffic Engineers Trip Generation Manual. Although specific tenants are unknown, it is the developer s intent to provide coffee shop and restaurant uses as well as other retail uses in the center. In order to calculate trip generation, the following assumptions were made on the size of the uses within the commercial buildings: Retail: 31,700 s.f. Coffee Shop: 1,700 s.f. Fast food: 6,000 s.f The previously approved subdivision consisting of 156 dwelling units generated 1,493 Average Daily Trips (ADT s). The residential units proposed with this project would generate 813 ADT s at a rate of 9.57 trips per unit. Therefore, the total average daily trips would be 3,555. Although the trip generation is significantly greater with the commercial uses, it is anticipated because of the proximity to the UC Merced Campus and future El Capitan High School campus, that a large number of trips will be made via pedestrians, bicycles, and public transit thus reducing the overall impact on the area. Acceptable LOS: Merced Vision 2015 General Plan, Policy T-1.8, establishes an acceptable LOS of D for intersection and roadway operations. Customarily, traffic studies prepared for the City also established a threshold of significance at 5% project contribution to a facility which is, or will be, operating at an unacceptable LOS E or F. Based on the Average Daily trips estimated for the proposed uses, the tables below show the Level of Service expected through 2020. All roadways will continue to operate at LOS D or better. Year # of Lanes G Street (Cardella Rd. to Bellevue Rd.) Average Daily Trips (ADT) Peak Hour Trips (PHT) Level of Service (LOS) Project s Percent of Peak Hour Traffic Volumes 2010 2 6,350 635 C+ 41% 2015 4 8,104 810 C+ 34% (estimated)* 2020 4 10,343 1,034 C+ 25% (estimated)* *Assuming an increase in traffic volumes of 5% per year. Source: Draft Merced Vision 2030 General Plan Table 4.4

Planning Commission Staff Report #11-18 Page 10 November 9, 2011 Bellevue Road (M Street to G Street) Year # of Lanes Average Daily Trips (ADT) Peak Hour Trips (PHT) Level of Service (LOS) Project s Percent of Peak Hour Traffic Volumes 2010 2 5,460 546 D 48% 2015 4 6,968 697 C+ 37% 2020 4 8,894 889 C+ 29% *Assuming an increase in traffic volumes of 5% per year. Source: Draft Merced Vision 2030 General Plan Table 4.4 A traffic signal has been installed at the intersection of Bellevue Road and G Street and roadway improvements have been installed widening G Street to provide 5 lanes (2 through lanes and a left and right turn lane for southbound traffic, and 1 through lane, a through/right turn lane, and a left-turn lane for northbound traffic). Bellevue Road, west of G Street has 2 through lanes for westbound traffic and a through lane and through/right turn lane for eastbound traffic. A traffic signal will also be installed at the intersection of Barclay Avenue and Bellevue Road. This project will be responsible for paying a fair share of the cost for that signal (12.5%) consistent with City policy for collector/arterial intersections. Parking D) Parking requirements for most uses within a neighborhood commercial center will be 1 space for every 250 square feet or 1 space for every 300 square feet, with the exception of restaurant uses. The parking requirements for restaurant/coffee shop uses are 1 space for every 2 ½ seats. The project design includes both on-street parking and the construction of two parking lots. Prior to occupancy by any tenant, plans will be reviewed to insure adequate parking is provided for that use. Typically, single-family homes require one space of off-street parking for each unit. However, because this is a small lot development (lot ranging in size from 3,000 to 4,000 square feet), additional parking spaces were required. According to the Small Lot Single-Family Home Design Guidelines, a minimum of 5 parking spaces is desired per unit. With 85 dwelling units proposed, the development is required to provide 425 parking spaces for the residential uses. This requirement can be met through on-street parking as well as spaces provided on-site. The project will have 170 spaces provided on site (2-car garages for each unit) and 162 spaces on the streets surrounding the residential units. In addition, 177 parking spaces are provided in the commercial parking lots. This brings the total parking spaces for the development to 509. Although this does not meet the minimum of 5 spaces per unit as called for by the Small Lot Design Guidelines, the original development was also approved without meeting this threshold. Staff feels sufficient parking has been provided for all the proposed uses. In addition, with the proximity to the UC Merced Campus and future El Capitan High School, many of the commercial patrons are likely to be pedestrians, bicyclists, or using public transit.

Planning Commission Staff Report #11-18 Page 11 November 9, 2011 Public Improvements/City Services E) Water/Sewer: The proposed project is served by a 16-inch water main in Bellevue Road and by a 27- inch sewer line also in Bellevue Road. Storm Drainage: The proposed Tower Lateral pipeline is the intended storm drain discharge point for this project that connects into Fahrens Creek. All storm drains were installed with the previous subdivision construction. Refuse: Public Works Staff recommends that refuse service be provided along the street frontages for lots fronting private driveways. However, those lots having alleys will be served from the alley. The applicants have worked with Public Works Staff regarding providing shared blue containers (recycling) and an alternative for the green waste containers by having a contract with a landscape maintenance company. If this agreement is not still in place for the residential units, the developer shall work with the City s Refuse Department to work out another agreement for picking up the green containers (Condition #12). The commercial portion of the project shall be served by the City s Refuse Department as well. The developer shall work with the Refuse Department to determine the proper placement of the refuse containers (Condition #11) Building Design F) The building design for the dwelling units will vary slightly from what was previously approved. For comparison, the previously approved elevations are shown at Attachment E and the proposed elevations are shown at Attachment D. Because there are only six homes that have been constructed thus far and the architectural style remains similar, staff feels the existing homes will fit in nicely with the proposed design. The proposed architectural design for the commercial buildings should blend nicely with the residential neighborhood. The store fronts will have design and architectural features that will add interest and depth to the buildings. In accordance with the Design Standards for Planned Development #73 and the proposed elevations (Attachment C), the materials shall include stucco, rock veneer, and awnings. The exact materials and colors shall be approved at the Conditional Use Permit stage. Site Design G) Access to the site for both the residential and commercial uses will be via Barclay Way. The site will also have an emergency access on Bellevue Road as was previously approved with the subdivision. Parking lots are provided for the majority of the commercial parking. However, there are a approximately 14 angle-parking spaces in front of the first building on Promenade Avenue. With the previously approved subdivision, there were parallel parking spaces in this area. Minimum street widths are required throughout the development to accommodate emergency response vehicles.

Planning Commission Staff Report #11-18 Page 12 November 9, 2011 The site design for the residential portion of the development has very few changes from the previously approved subdivision. The units will still be served by alleyways and all park strips and sidewalks that have been installed will remain. Landscaping H) The commercial development shall provide sufficient landscaping around the buildings to be consistent with the proposed elevations. Detailed landscape plans shall be submitted with the Conditional Use Permit application. Parking lot trees shall be provided at a minimum of 1 tree for every 6 parking spaces and dense landscaping shall be provided to shield the residential uses from vehicle headlights. Neighborhood Impact/Interface I) Because there are only six homes that have been constructed with the previously approved subdivision, there are not a large number of dwellings that are currently adjacent to the proposed commercial use. The dwellings on the south side of Bellevue Road are far enough away from the commercial uses that the impacts would be very minimal. The residences to the west of the site on Bellevue Road are approximately 1,400 feet or more away from the site. This distance is sufficient to reduce any possible impacts to be less than significant. With the construction of the high school to the north, the commercial uses will more than likely see a large number of student customers. The uses that would be allowed within a Neighborhood Commercial development do not allow alcohol sales without the approval of a Conditional Use Permit. Typical uses allowed within a Neighborhood Commercial are shown below: Barber/beauty shop Retail stores Financial institutions Restaurants Massage establishments Tanning and nail salons Professional offices Grocery store Drug store The allowed uses within a Neighborhood Commercial zone should not cause a significant impact on the area or the neighboring school. It is anticipated that this development may provide needed products and services to the area. Signage J) All signing shall be in compliance with the North Merced Sign Ordinance and the sign regulations of the Neighborhood Commercial (C-N) zone. Land Use/Density Issues K) Although the dwelling units are changing from detached units to attached units, the number of units (density) is not changing from what was previously approved for the eastern half of the development. The previously approved subdivision design has been maintained as well as the density for this portion of the project. Overall, the number of residential units were reduced from 150 units to 85 units.

Planning Commission Staff Report #11-18 Page 13 November 9, 2011 Reduction in Housing Units L) When a land use is proposed to be changed from residential to a non-residential land use, the City must demonstrate that sufficient residentially zoned land remains available to meet the City s Regional Housing Needs Allocation (RHNA) per California Government Code 65863. According to Table 9.4.2 of the City s Housing Element, the City has a total of 2,768 acres of planned residential vacant land within its limits. When analyzing sites that would accommodate the RHNA, the City considered those sites that would allow a minimum of 20 dwelling units per acre. Because this site is currently designated Low-Medium Density (LMD) Residential which would allow 6 to 12 dwelling units per acre, this site was not included in the calculation to meet the City s RHNA. Therefore, the proposed change will not affect the City s ability to meet its Regional Housing Needs Allocation and would conform to the City s General Plan if the general plan amendment is approved. Environmental Clearance M) The Planning staff has conducted an environmental review (Initial Study #11-22) of the project in accordance with the requirements of the California Environmental Quality Act (CEQA), and a Draft Negative Declaration (i.e., no significant adverse environmental effects have been found) is being recommended (Attachment F). Attachments: A) Location Map B) Site Plan C) Commercial Elevations D) Residential Elevations E) Previously Approved Residential Elevations F) Initial Study #11-22 G) Draft Planning Commission Resolution Ref: H:projects 11/GPA#11-04/ZC#413/SR#11-18