REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning and Development Department
THROUGH: SOPHIA PAGOULATOS, Planning Manager
Planning and Development Department
BY: ADRIENNE ASADOORIAN-GILBERT, Supervising Planner
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, 15-5102, 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 ministerial approval of housing projects.
1. ADOPTION of Mitigated Negative Declaration Sch No. 2024110662 for Text Amendment Application No. P24-00794.
2. BILL (for introduction), amending Sections 15-1302, 15-4907, 15-5102, 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 ministerial approval of housing projects in the following instances as noted below:
a. Ministerial approval of office to dwelling conversions in the Office zone district; and
b. Ministerial approval of multi-unit residential development in the RM-1, RM-2, and RM-3 zone districts on parcels within one-half mile of an existing bus stop; and
c. Ministerial approval of multi-unit residential uses in the NMX, CMX, RMX, CMS and CR zone districts on parcels within the City’s Infill Priority Area; and
d. Ministerial approval of new multi-unit residential development in the Office zone district.
Body
RECOMMENDATION
Staff recommends approval of Text Amendment Application No. P24-00794 and related environmental assessment for Mitigated Negative Declaration Sch No. 2024110662, amending Sections 15-1302, 15-4907, 15-5102, 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 ministerial approval of housing projects as referenced above.
EXECUTIVE SUMMARY
Text Amendment Application No. P24-00794 proposes 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.
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.
In addition to providing more options for the development of housing, adoption of the proposed Text Amendment would help the City maintain the Prohousing and Housing Element commitments it has made over the last two years. On November 3, 2022, the Fresno City Council approved an application to the Prohousing Designation Program, established by the California Department of Housing and Community Development (HCD) to encourage the acceleration of housing production at the local level. In the Prohousing Designation Program application, the City committed as Program 1G to:
Update the Development Code to permit additional residential uses in non-residential zone districts, specifically: Permit residential in Office District; permit previously residential use to return to residential use; and expand residential uses in Public & Institutional District.
On March 30, 2023, HCD approved the City’s application and granted the City a Prohousing Designation. The Prohousing Designation awarded to the City includes a commitment to update the Development Code to permit additional residential uses in non-residential zone districts. The Prohousing Designation makes the City eligible for grant funding through programs such as the Prohousing Incentive Pilot (PIP) Program. The Prohousing Designation is at risk if the City does not satisfy its commitments.
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 housing capacity of 22,425 dwelling units over the next 30 years in all areas of the City, including high and relatively higher resource areas. 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:
• Residential Multi-Family District (RM-1, RM-2 and RM-3 zones): 3,848 acres
• Commercial District (CMS and CR zones): 726.4 acres
• Mixed-Use Districts (NMX, CMX and RMX zones): 3,143.1 acres
• Employment Districts (O zone): 1,373 acres
As shown in Exhibit H - Map of Eligible Sites, parcels in the RM-1, RM-2 and RM-3 zones are generally dispersed throughout the City, concentrated in proximity to intersections with existing transit service, parcels in the NMX, CMX and RMX zones are generally located along high-frequency transit corridors within City limits such as along Blackstone and Shaw Avenues. 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.
Ministerial Approval
As established by SB 35, ministerial approval includes a process for development approval which involves little or no subjective judgement by a public official or commission. Planning applications are reviewed for compliance with City standards and requirements in the Development Code. If a project complies with these standards and requirements, an application will be processed as a Zone Clearance pursuant to FMC Sections 15-5102, 5103, 5104 and 5105. Such ministerial approvals would not be reviewed by Project Review Committees, Planning Commission or City Council but are subject to appeal.
The proposed Text Amendment would prohibit ministerial approval of projects in Sensitive Areas. These include parcels with the following:
• Important Farmland (Prime Farmland, Unique Farmland, or Farmland of Statewide Importance), as designated by the State Department of Conservation;
• Williamson Act contract(s).
• Special flood hazard area (A, AE, etc.) as designated by the Federal Emergency Management Agency.
• Safety Zones 1 (RPZ), 2 (IADZ) or 3 (ITZ) within the Airport Influence Areas as designated by the Airport Land Use Commission of Fresno County.
• Hazardous sites (e.g., Cortese List references).
• The project would involve the modification or demolition of a designated Historic Resource.
In addition, new residential development would be prohibited on vacant or underutilized parcels located in the Office zone within 500 feet of a school.
The Text Amendment also requires compliance with the following infrastructure development impact thresholds:
Public Utilities
• Pipelines that are downstream (between the project site and wastewater treatment plant or lift station) from the proposed project shall maintain a sewer flow capacity of 1.15 q/Q ratio. Projects that result in a pipeline exceeding the flow capacity of 1.15 q/Q shall construct upsized replacement pipelines for those found to be deficient per the requirements of the Department of Public Utilities Director.
• On-site retention or storm drainage system modifications are required for projects within Priority Development Areas and the O District that are: 1) proposed at a density exceeding 16 du/ac in CMS, CR, and NMX, 30 du/ac in CMX, and 45 du/ac in RMX and 2) within areas where storm drain facilities are already constructed.
• The City shall evaluate additional landfill locations at the time of discretionary projects are submitted and shall not approve development that could contribute solid waste to a landfill that is at capacity until additional capacity is provided.
• For any project that would cause the existing water system pipeline in the surrounding area to not be able to meet maximum day demand plus the project required fire flow of 2,500 gallons per minute (gpm), the project developer shall construct upsized replacement pipelines, per the requirements of the Department of Public Utilities Director, in the project vicinity to increase flow for the maximum day demand plus fire flow condition.
Public Works
• When a proposed residential development consisting of more than 200 units is in close proximity to a school or activity center (e.g. a mixed-use urban area where there is a concentration of commercial and other land uses), is near a bus stop or pedestrian or bicycle route (existing or planned per the Active Transportation Plan as amended), the following may be required:
o Bicycle and pedestrian facilities such as signalized crossings, traffic signal upgrades, such as left-turn phasing, sidewalks or asphalt paths, and bicycle facilities.
o Construction of improvements in accordance with the City of Fresno’s Complete Street Policy (as amended).
• When LOS reaches E or F on High Frequency Transit Corridors, development projects within the Corridors may be conditioned to provide transit street design treatments and operational strategies, or in-lieu fees, set for by the City of Fresno, including intersection treatments, dedicated transit lanes, business access and transit (BAT) lanes, Transit Signal Priority (TSP), and/or others.]
If a project is located on a parcel that contains a Sensitive Area or if it fails to meet the above development impact thresholds, ministerial approval cannot be granted.
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.
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