REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning and Development Department
ASHLEY ATKINSON, Assistant Director
Planning and Development Department
BY: SOPHIA PAGOULATOS, Planning Manager
Planning and Development Department
SUBJECT
Title
Consideration of Text Amendment Application No. P24-00794 and related Environmental Finding for Environmental Assessment No. P24-00794, amending Sections 15-1302, 15-4907, 15-6702, 15-6802 of the Fresno Municipal Code, repealing Section 15-1106 of the Fresno Municipal Code, and establishing Section 15-2742.5 of the Fresno Municipal Code to allow residential uses in the Office District.
1. ADOPTION of Mitigated Negative Declaration Sch No. 2024110662 for Text Amendment Application No. P24-00794.
2. ***BILL B-23 (Reintroduced as Amended June 19, 2025) (For Adoption), amending Sections 15-1302, 15-4907,15-6702, 15-6802 of the Fresno Municipal Code, repealing Section 15-1106 of the Fresno Municipal Code, and establishing Section 15-2742.5 of the Fresno Municipal Code, to permit office-to-dwelling conversions and new residential uses on vacant or underutilized parcels located in the Office District, except when the vacant or underutilized parcel is within 500 feet of a school. (Subject to Mayor’s Veto).
Body
RECOMMENDATION
Staff recommends approval of Text Amendment Application No. P24-00794 and related environmental assessment for Mitigated Negative Declaration Sch No. 2024110662, as amended by the City Council on June 19, 2025 amending Sections 15-1302, 15-4907,15-6702, 15-6802 of the Fresno Municipal Code, repealing Section 15-1106 of the Fresno Municipal Code, and establishing Section 15-2742.5 of the Fresno Municipal Code, to permit office-to-dwelling conversions and new residential uses on vacant or underutilized parcels located in the Office District, except when the vacant or underutilized parcel is within 500 feet of a school.
EXECUTIVE SUMMARY
Text Amendment Application No. P24-00794 initially proposed to amend Sections 15-1302, 15-4907, 15-5102, 15-6702, 15-6802 of the Fresno Municipal Code, repeal Section 15-1106, and establish Section 15-2742.5 of the Fresno Municipal Code to permit ministerial approval of housing projects in the following instances: (1) proposed office to dwelling conversion residential use classification in the Office District; (2) multi-unit residential development in the RM-1, RM-2, and RM-3 zone districts on parcels within .5 mile of an existing bus stop; (3) multi-unit residential uses in NMX, CMX, RMX, CMS, and CR zone districts on parcels within the City’s Infill Priority Area; (4) new standalone multi-unit residential development in the Office District.
At the adoption hearing, held on June 19, 2025, the Council voted to amend the text amendment by removing the ministerial components and keeping the provisions to permit office-to-dwelling conversions and new residential uses on vacant or underutilized parcels located in the Office District, except when the vacant or underutilized parcel is within 500 feet of a school. The 500-foot school buffer is contained in Section 1302, Table 15-1302, Footnote 19. The proposed amendments to Sections 15-4907 and 15-5102, which included requirements for ministerial approval, have been removed or revised to remove the ministerial components of the text amendment.
BACKGROUND
In April 2022, the Mayor prepared and presented the One Fresno Housing Strategy, which called for permitting residential uses in non-residential districts, provisions of which are included in the proposed Text Amendment. On March 30, 2023, the City Council initiated Resolution No. 2023-064, which instructed staff to prepare a text amendment to the Development Code to address the changing dynamics of office work and citywide housing shortages. Text Amendment Application No. P24-00794 proposes the following: (1) ministerial approval of the conversion of office uses to residential uses including parcels in the Office Zone District that have an existing commercial use; (2) ministerial approval of multi-unit residential developments in multi-family districts (RM-1, RM-2 and RM-3) within .5 mile of an existing bus stop; (3) ministerial approval of single-unit dwellings, and attached and multi-unit residential housing types, in mixed-use districts (NMX, CMX, RMX, CMS, and CR) within the City’s Infill Priority Area; (4) ministerial approval of new standalone multi-unit residential development in the Office Zone District.
On December 12, 2024, City Council adopted the 2024-2031 Housing Element. Program 2 of the Housing Element calls for higher density housing in all areas of the City including:
“developing zoning standards to permit residential conversions in the Office Zone District, housing as a permitted use on parcels zoned Office, allow ministerial approval of office-to-residential conversions, and allow ministerial approval of housing near bus stops, including in RM zones and in zone districts that allow mixed-use.” And,
“If the objective of 2,500 units cannot be met within the Office Zone District, the City will work with willing property owners to identify additional sites.”
The proposed Text Amendment satisfies the Housing Element commitment by providing additional new housing capacity of 4,868 dwelling units over the next 30 years. This represents new capacity, while the overall capacity in all areas of the City, including high and relatively higher resource areas, is 22,425 dwelling units Citywide over the next 30 years. If the City Council does not take this action, parcels within high and relatively high resource areas will need to be identified and rezoned to add at least 2500 units of housing capacity in the following timeframes:
“Create capacity for 500 units for high density multi-family development in high and relatively higher resource and income areas by the end of 2025, an additional 1,000 units by December 2027, and an additional 1,000 units by December 2031.”
The proposed Text Amendment includes eligible sites located in the following district types and associated zones:
• Employment Districts (O zone): 1,373 acres
As shown in Exhibit H - Map of Eligible Sites, Eligible sites in the O zones are dispersed throughout the City, with a majority located along Herndon Avenue and north of Herndon Avenue east of SR 41.
Public Notice
A Legal Notice was published in the Fresno Bee on March 7, 2025, pursuant to Fresno Municipal Code Section 15-5007(D) (See Exhibit D). In addition, the notice was posted on the City Clerk’s website, provided to the City’s distribution list for such notices, and emailed to interested parties.
Public Comments
A Draft MND was released for a 30-day public review period beginning on November 20, 2024, and ending on December 20, 2024. Public comments included the following:
• Concerns over neighborhood impacts from parcels located on Herndon and Prospect Avenues
o Inadequate parking for Orchid Park
o No on-street parking for vehicles that will be generated by new developments
o Access concerns due to the roundabout on Prospect Avenue
o Potential altered traffic patterns throughout the neighborhood
o School safety to the adjacent Tatarian Elementary School
o Noise and air pollution impacts
o Ingress and egress concerns that could cause traffic to back up onto Herndon Avenue
Please see Exhibit I - Public Comments and Exhibit G - Response to Comments for additional information.
Review By Committees and Commissions
The active Council District Plan Implementation Committees, Tower District Design Review Committee, Airport Land Use Commission and Planning Commission comments and recommendations are listed below:
District 1: The item was scheduled for the August 8th, 2024 meeting agenda. Due to the volume of agenda items, the Committee did not hear the item within the scheduled meeting time.
District 3: The item was presented on August 27th, 2024. The committee provided questions pertaining to how conversions would be required to comply with the California Building Code, intent of the ministerial provision of the Text Amendment and open space concerns in new developments.
District 4: The item was presented on August 20th, 2024. The committee did not provide additional comments.
District 5: The item was scheduled for the August 28th and September 25th meeting agendas but did not receive a formal presentation due to lack of quorum.
District 6: The item was presented on September 11th, 2024. The committee provided questions on where multi-unit housing would be permitted and comments on the ministerial process.
Tower District Design Review Committee: The item was presented on August 6th. The committee provided comments regarding concerns over the ministerial nature of the Text Amendment.
Airport Land Use Commission: The item was presented to the ALUC on August 5th. The ALUC recommended a finding of consistency with the proposed Text Amendment.
Planning Commission
The Planning Commission considered this item at its regularly scheduled meeting on March 5, 2025. Public testimony was provided predominately by residents living near Herndon and Prospect Avenues. Comments received at Planning Commission which are not addressed in Exhibit G - Response to Comments are included below.
Commissioners raised concerns regarding the ministerial provision proposed as part of the Text Amendment. The Planning Commission recommended denial of the proposed Text Amendment and associated Mitigated Negative Declaration.
Responses to Public Comments Received at Planning Commission
Comment: Text Amendment proposes to rezone properties to allow for residential uses to be developed in the Office Zone District.
Response: The Text Amendment does not propose to rezone properties. The Text Amendment would allow residential uses to be developed in the Office Zone District - the existing zoning of these properties would remain Office.
Comment: Ministerial provision would remove authority from Planning Commission and City Council.
Response: Ministerial approval requires a clear set of standards and requirements that a project must comply with. Subject applications are reviewed by Staff and routed to applicable City departments for compliance with City standards and requirements as established in the Development Code. If a project complies with these standards and requirements, an application will be processed as a Zone Clearance and does not require discretionary review by the Planning Commission or City Council. However, Zone Clearance applications can be appealed to the Planning Commission, as referenced in FMC Section 15-4907.
Comment: Text Amendment would result in overcrowding of multi-family in the neighborhood near Herndon and Prospect Avenues.
Response: As referenced previously, the Text Amendment does not propose to rezone properties. Properties which are currently zoned for multi-family uses would remain and can currently be developed with multi-family residential uses pursuant to the requirements of the Fresno Municipal Code.
Comment: The Mitigated Negative Declaration provides minimal environmental analysis. Request a full Environmental Impact Report.
Response: In accordance with the California Environmental Quality Act (CEQA), an Initial Study was prepared to determine whether the Text Amendment may have a significant effect on the environment. CEQA Guidelines Section 15064(a)(1) states that an Environmental Impact Report (EIR) must be prepared if there is substantial evidence in light of the whole record that the proposed project under review may have a significant effect on the environment and should be further analyzed to determine mitigation measures or project alternatives that might avoid or reduce project impacts to less than significant levels.
A Negative Declaration may be prepared instead if the lead agency finds that there is no substantial evidence in light of the whole record that the project may have a significant effect on the environment. As analyzed in the Initial Study for this Text Amendment, potential effects to the environment can be mitigated to a level of less than significance, therefore, an EIR is not required.
Comment: Concerned regarding the repeal of FMC Section 15-1106.
Response: The Text Amendment proposes to repeal FMC Section 15-1106 and add all the provisions from this Section into FMC Section 15-5102 for continuity and ease of readability in the Development Code.
Comment: The area near Herndon and Marks is not a high resource area and that provision shouldn’t be applied to this neighborhood.
Response: As referenced in Appendix 1E of the Fresno Multi-Jurisdictional Housing Element, Figure 1E-3.14 identifies the TCAC Opportunity Areas located throughout the City of Fresno, which are established by the California State Treasurer Tax Credit Allocation Committee (TCAC) and California Department of Housing and Community Development (HCD). This map identifies the following Opportunity Areas: Highest Resource, High Resource, Moderate Resource, Low Resource, High Segregation & Poverty. Highest Resource areas are defined as, “the top 20 percent highest-scoring census tracts in the region. It is expected that residents in these census tracts have access to the best outcomes in terms of economic opportunities, health, and education attainment.”
As referenced in Figure 1E-3.14, the area near Herndon and Marks Avenues is identified as the Highest Resource Area.
City Council
Text Amendment P24-00794 was introduced at the May 22, 2025 City Council meeting:
Text Amendment Application No. P24-00794 initially proposed to amend Sections 15-1302, 15-4907, 15-5102, 15-6702, 15-6802 of the Fresno Municipal Code, repeal Section 15-1106, and establish Section 15-2742.5 of the Fresno Municipal Code to permit ministerial approval of housing projects in the following instances: (1) proposed office to dwelling conversion residential use classification in the Office District; (2) multi-unit residential development in the RM-1, RM-2, and RM-3 zone districts on parcels within .5 mile of an existing bus stop; (3) multi-unit residential uses in NMX, CMX, RMX, CMS, and CR zone districts on parcels within the City’s Infill Priority Area; (4) new standalone multi-unit residential development in the Office District. No action was taken at this hearing.
At the adoption hearing, held on June 19, 2025, 4 members of the public spoke in support of the text amendment and twelve spoke in opposition. The Council voted to amend the text amendment by removing the ministerial components and keeping the provisions to permit office-to-dwelling conversions and new residential uses on vacant or underutilized parcels located in the Office District, except when the vacant or underutilized parcel is within 500 feet of a school.
ENVIRONMENTAL FINDINGS
An Environmental Assessment was prepared for this project in accordance with the requirements of the California Environmental Quality Act (CEQA) Guidelines (See Exhibit F).
The completed environmental impact checklist form, and its associated narrative reflect applicable comments from responsible and trustee agencies and research, and analysis conducted to examine the interrelationship between the proposed project and the physical environment. The information contained in the Project application and its related environmental assessment application, responses to requests for comment, checklist, initial study narrative, and any attachments thereto, combine to form a record indicating that an initial study has been completed in compliance with the State CEQA Guidelines and the CEQA.
All new development activities and many non-physical projects contribute directly or indirectly toward cumulative impacts on the physical environment. It has been determined that the incremental effect contributed by this Project toward cumulative impacts is not considered substantial or significant, and/or that cumulative impacts accruing from this project may be mitigated to be less than significant with application of feasible mitigation measures.
Based upon the evaluation guided by the environmental checklist form, it was determined that there are no foreseeable substantial impacts from the Project, after the incorporation of mitigation measures in the Mitigation Monitoring and Reporting Program. The completed environmental checklist form indicates whether an impact is potentially significant, less than significant with mitigation, less than significant, or no impact.
For some categories of potential impacts, the checklist may indicate that a specific adverse environmental effect has been identified which is of sufficient magnitude to be of concern. Such an effect may be inherent in the nature and magnitude of the Project or may be related to the design and characteristics of the individual project. Effects so rated are not sufficient in themselves to require the preparation of an EIR and have been mitigated to the extent feasible. With the mitigation imposed, there is no substantial evidence in the record that this Project may have significant, direct, indirect, or cumulative effects on the environment that are significant. The Mitigation Monitoring and Reporting Program will be imposed on this Project.
The Initial Study has concluded that the Project will not result in any adverse effects which fall within the "Mandatory Findings of Significance" contained in Section 15065 of the CEQA Guidelines. The finding is, therefore, made that the Project will not have a significant adverse effect on the environment.
FRESNO MUNICIPAL CODE FINDINGS
Development Code Text Amendment. Section 15-5811 of the Fresno Municipal Code provides that the Planning Commission shall not recommend, and the City Council shall not approve an application unless the proposed Text Amendment meets Criteria A (1 and 2) of Section 15-5811. Please see Exhibit E for the Fresno Municipal Code Findings.
LOCAL PREFERENCE
No procurement is associated with this item.
FISCAL IMPACT
No fiscal impact is associated with this item.
Attachments:
Exhibit A - Initiating Resolution 2023-064
Exhibit B - Draft Ordinance (Text Amendment P24-00794)
Exhibit C - Planning Commission Resolution 13887
Exhibit D - Public Notice
Exhibit E - Fresno Municipal Code Findings
Exhibit F - Environmental Assessment (MND SCH No. 2024110662)
Exhibit G - Response to Comments
Exhibit H - Map of Eligible Sites
Exhibit I - Public Comments
Exhibit J - Presentation
Exhibit K - Supplement Public Comment Packet - Redacted
Exhibit L - District 2 Map Presented
Exhibit M - Public Comment Packet - Redacted
Exhibit N - Public Comment - Redacted
Exhibit O - Public Comment Packet - Redacted
Exhibit P - Amended Ordinance (Text Amendment P24-00794)