Fremont City Council
January 14, 2025

• Integration with Silicon Valley businesses via the Dumbarton Bridge: The Dumbarton Bridge provides direct access to the Bay Area’s primary cluster of innovation -oriented technology businesses in Silicon Valley. The bridge essentially integrates Fremont within this innovation ecosystem, allowing Fremont to provide the “scale-up” space for manufacturing uses. Tesla is an example of this symbiotic relationship; the company’s primary corporate offices and former headquarters are in Palo Alto, while manufacturing occurs in Fremont.

• Availability of modern industrial buildings and industrial land: Fremont’s inventory of newer industrial buildings and industrial development opportunities better meet building configuration, access, and power needs of innovation-oriented tenants compared to the older building stock of communities such as San Leandro.

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Attachment: Informational 2 - Palisade Fremont Boulevard Economic Analysis (5337 : Palisade Fremont Boulevard) Market Assessment and Economic Benefits Analysis for Change of Use at 43990 Fremont Boulevard 20 • Efficient City permitting and approvals processes: Brokers recently interviewed noted that Fremont also competes for innovation -oriented industrial tenants based on responsive, efficient, and easy to navigate permitting and approvals processes relative to neighboring communities.

FIGURE 20: CONCENTRATION OF POPULATION WITH ADVANCED DEGREES IN THE BAY AREA, 2022

Fremont also attracts demand for warehouse and distribution space based on proximity to households and businesses and the city’s location along major transportation corridors. Demand for warehouse and distribution space continues to grow in response to e-commerce distribution needs, with demand especially surging during and since the COVID -19 pandemic. Brokers noted that this has reduced vacancy rates and increased land costs, especially in high demand areas, such as Fremont. As shown in Figure 18, over half the square feet of major leases signed in Fremont in the past five years were for warehouse and distribution space. Fremont competes for warehouse and distribution tenants based on the city’s location along the I -880 corridor, including access to the Port of Oakland , and access to numerous businesses and residents. However, surrounding communities offer similar accessibility at potentially lower costs due to reduced competition with technology businesses for industrial space.

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Attachment: Informational 2 - Palisade Fremont Boulevard Economic Analysis (5337 : Palisade Fremont Boulevard) Market Assessment and Economic Benefits Analysis for Change of Use at 43990 Fremont Boulevard 21 SUBJECT SITE ASSESSMENT FOR INDUSTRIAL USE
An industrial development project at the Subject Site is likely to succeed in attracting tenants due to general demand for new modern industrial space, compatibility with surrounding uses, and convenient access to existing amenities. The Subject Site could be successful in attracting and retaining industrial tenants due to strong demand for industrial space in Fremont, ongoing strength of the workforce and locational amenities, and by providing a smaller site suitable for a single-tenant which is not commonly available in Fremont. Brokers noted that demand is especially strong for buildings between 100,000 and 200,000 square feet; North Palisade Partners ’ proposal is smaller than the sizes in this range, but it is well-suited for a single tenant . The proposed project is also of a similar size as many recent leases by advanced manufacturing tenants. Brokers also noted that although demand is strongest for the larger size range mentioned above, there is a distinct lack of spaces available in the size range of this proposal, and that the proposed building would therefore readily attract tenants.

The Subject Site is well-positioned to attract advanced manufacturing tenants, as well as warehouse and distribution uses. The Subject Site’s location will allow it to function equally well for either use, suggesting that tenanting of new space at the site would follow recent patterns that include warehouse and distribution or advanced manufacturing uses. Brokers interviewed for this study suggested that strongest demand would be from advanced manufacturing users due to the suitable size of the space and the location within Fremont. Brokers suggest that other industrial areas, such as those at or near Pacific Commons, are likely to be slightly more desirable than the Subject Site for distribution and warehouse tenants. Pacific Commons’ desirability derives from that area’s better configuration for large trucks to maneuver.

KEY INDUSTRIAL CONCLUSIONS
Demand for industrial space is strong in Fremont, including advanced manufacturing, and warehouse and distribution space . Fremont is especially well positioned to attract advanced manufacturing tenants due to the city’s direct access to Silicon Valley businesses via the Dumbarton Bridge and the city’s access to a workforce with a diverse range of education and specialized skills. The city’s ability to attract advanced manufacturing uses is demonstrated by both recent tenanting trends and significant venture capital investments in innovation-oriented businesses located in and near the city.

New industrial space at the Subject Site would be well-positioned to attract a diverse set of businesses, including businesses engaged in advanced manufacturing, and warehouse and distribution activities.

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Attachment: Informational 2 - Palisade Fremont Boulevard Economic Analysis (5337 : Palisade Fremont Boulevard) Market Assessment and Economic Benefits Analysis for Change of Use at 43990 Fremont Boulevard 22 POTENTIAL ECONOMIC AND FISCAL BENEFITS OF PROPOSED

INDUSTRIAL USE
Strategic Economics assessed the likely economic and fiscal benefits associated with buildout of North Palisade Partners ’ industrial development proposal for the Subject Site. Based on the preceding analysis of likely tenant types that would occupy industrial space at the Subject Site, Strategic Economics assumed that either an advanced manufacturing tenant or a warehouse tenant might occupy the space. Because of this, Strategic Economics conducted the analysis with two scenarios: 1) all of the space is occupied by a warehouse tenant or 2) all of the space is occupied by an advanced manufacturing tenant. The results differ in terms of number of jobs produced, potential occupation mix, and estimated wages. Although t he project plans indicate the breakdown of space between industrial use and office as demonstrated below, both scenarios of the analysis were run as if all square footage is applicable to the industrial use. This method accounts for the fact that data sources that describe jobs by industry sector a lready include the entire range of occupations present at businesses in a given sector (including office and administration jobs). The following sections present and compare the analysis results for the two scenarios.

FIGURE 21: BUSINESS ACTIVITY ASSUMPTIONS APPLIED IN THE ECONOMIC AND FISCAL ANALYSIS Use Square Feet
Industrial 64,874
Office 4,998
Total: Analyzed as Warehouse or Manufacturing 69,872
Source: Architectural plans authored by HPA Architecture for North Palisade Partners, provided by the City of Fremont, 2024.

Employment and Workforce Opportunities
This section summarizes the wages, occupations, and entry-level educational requirements for jobs at businesses matching the warehouse and advanced manufacturing uses assumed to locate at the Subject Site. The results are based on recent data for the Oakland-Hayward -Berkeley Metropolitan Division. This section first presents a subsection of results assuming a warehouse tenant, followed by a subsection of results assuming an advanced manufacturing tenant.

The text box on the following page describes t he methodology used for this analysis . Strategic Economics estimated workforce outcomes including the number of jobs, worker occupation mix, average worker incomes, and entry -level education requirements for new jobs at North Palisade Partners’ proposed development project.

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Attachment: Informational 2 - Palisade Fremont Boulevard Economic Analysis (5337 : Palisade Fremont Boulevard) Market Assessment and Economic Benefits Analysis for Change of Use at 43990 Fremont Boulevard 23 OVERVIEW OF METHODOLOGY
The employment and workforce analysis summarized in this memorandum ties land uses (manufacturing and warehouse) to industries in order to estimate the typical wages, occupational mix, and entry -level educational requirements of jobs associated with different land uses. This makes it possible to draw broad conclusions about the likely occupations and entry -level educational requirements of new jobs associated with the development proposal , based on patterns in the surrounding region. The data sources used a nd the steps followed for this analysis are described below.

Data sources. Findings were based on data provided by the California Economic Development Department (EDD) for the San Jose-Sunnyvale-Santa Clara MSA. Two main EDD data sources were used:
• Findings related to industries, wages, and occupations are based on the EDD Industry to Occupation Matrix for the first quarter of 2021.
• Findings related to entry -level educational requirements we re based on the EDD Occupation Projections dataset for 2016-2026. Note that the data on entry -level educational requirements by occupation may not always reflect what is required of new workers in a highly competitive job market such as the San Francisco B ay Area. Nonetheless, when summarized at a high -level, this data is helpful to assess the general education and skills required for different occupational categories.

Step 1. Define land use categories by industry groups. As a first step, the three land uses assumed for the development proposal were defined based on the following industry groups, as categorized by the North American Industry Classification System (NAICS):
• Manufacturing: Printing and Related Support Activities (323), Chemical Manufacturing (325), Nonmetallic Mineral Product Manufacturing (327), Fabricated Metal Product Manufacturing (332), Machinery Manufacturing (333), Computer and Electronic Product Manufacturing (334), Electrical Equipment and Appliances (335), Transportation Equipment Manufacturing (336), Furniture and Related Product Manufacturing (337), Miscellaneous Manufacturing (339) , Computer Systems Design and Related Services (5415)
• Warehouse: Wholesale Trade (42), Couriers and Messengers (492), Warehousing and Storage (493), Electronic Shopping and Mail-Order Houses (4251) Step 2. Link industry groups to occupations and wages (MSA level). Based on these industry group definitions, the Industry to Occupation Matrix dataset was used to associate each land use with an occupational mix, categorized using major Standard Occupational Classification (SOC) codes. This same dataset was also used to associate each land use to an average annual wage. In both cases, results obtained are reflective of the MSA overall.

Step 3. Link occupations to entry-level educational requirements (MSA level). The occupational mix of each land use was then linked to the EDD Occupation Projections dataset in order to obtain the typical mix of educational levels required by major SOC Code. Again, these results are reflective of the MSA overall.

Step 4. Apply the MSA’s relative shares of occupations by land uses and educational requirements by land uses to the job estimates. The relative shares of occupations and educational requirements by land use derived from the MSA datasets were applied to the number of jobs by land use for the overall development proposal. This made it possible to estimate the projected number of jobs by occupation and entry -level education required.

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Attachment: Informational 2 - Palisade Fremont Boulevard Economic Analysis (5337 : Palisade Fremont Boulevard) Market Assessment and Economic Benefits Analysis for Change of Use at 43990 Fremont Boulevard 24 Employment and Workforce Opportunities Assessment:

Warehouse Tenant Scenario

ON-SITE JOBS
Based on general job density assumptions by land use, Strategic Economics estimated that approximately 69 jobs would be associated with the development proposal if occupied by a warehouse tenant. The job density assumptions and estimated new jobs are shown in Figure 22.

FIGURE 22: EMPLOYMENT DENSITY ASSUMPTION AND ON-SITE JOBS Land Use Square Feet
Sq. Ft. per Job
Assumption (a) New Jobs
Warehouse 69,872 1,000 69 (a) The analysis applied generalized assumptions of ranges of jobs per square foot, based on Strategic Economics’ ongoing review of available literature and past project experience. Actual outcomes will depend on the specific tenants that occupy any future industrial space at the site.

Source: Strategic Economics, 2024.

OCCUPATION MIX
The development proposal for the Subject Site would accommodate a diverse mix of jobs by occupation, with the greatest numbers of jobs in transportation and material moving occupations for a warehouse tenant . Figure 23 shows the breakdown of new jobs by occupation for a warehouse tenant at the Subject Site. Of the 6 9 jobs at the Subject Site, 47.8 percent would consist of transportation and material moving occupations, 14.5 percent in sales and related occupations, and

12.8 percent in office and administrative support occupations. The remaining 2 4.9 percent of jobs would consist of jobs in a variety of occupations.

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Attachment: Informational 2 - Palisade Fremont Boulevard Economic Analysis (5337 : Palisade Fremont Boulevard) Market Assessment and Economic Benefits Analysis for Change of Use at 43990 Fremont Boulevard 25 FIGURE 23: PROJECTED NEW JOBS BY OCCUPATION FOR A WAREHOUSE TENANT AT NORTH PALISADE PARTNERS’

SUBJECT SITE DEVELOPMENT PROPOSAL
Major Occupation Category Number of Jobs Percent of Jobs Management 5 7.6%
Business and Financial Operations 3 5.0%
Computer and Mathematical 1 2.1%
Architecture and Engineering 0 0.6%
Life, Physical, and Social Science 0 0.3%
Community and Social Service 0 0.0%
Legal 0 0.1%
Educational Instruction and Library 0 0.0%
Arts, Design, Entertainment, Sports, and Media 1 1.0%
Healthcare Practitioner and Technical Occupations 0 0.2% Healthcare Support 0 0.0%
Protective Service 0 0.0%
Food Preparation and Serving 0 0.0%
Building and Grounds Cleaning and Maintenance 0 0.4%
Personal Care and Service 0 0.0%
Sales and Related 10 14.5%
Office and Administrative Support 9 12.8%
Farming, Fishing, and Forestry Occupations 0 0.1%
Construction and Extraction 0 0.2%
Installation, Maintenance, and Repair 3 4.0%
Production 2 3.2%
Transportation and Material Moving 33 47.8%
Note: Number of jobs are projected proportionally to the occupational mix of the MSA. Occupation categories which have a stated number of jobs as 0 have a small number of jobs within the MSA which, when estimated for this size development, constitute less than 1 job but which may still exist. Job counts do not sum to 69 due to rounding.

Source: California Economic Development Department for the San Jose-Sunnyvale-Santa Clara MSA, Industry to Occupation Matrix for Q1 2022; Strategic Economics, 2024.

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Attachment: Informational 2 - Palisade Fremont Boulevard Economic Analysis (5337 : Palisade Fremont Boulevard) Market Assessment and Economic Benefits Analysis for Change of Use at 43990 Fremont Boulevard 26 AVERAGE INCOME
Potential new jobs at the Subject Site are also associated with a variety of average annual wages .

Figure 24 shows the average annual wages associated with the mix of occupations within each major occupation category. The overall average annual wage for warehouse occupations is $76,921 but has a range between $21,000 and $167,000.

FIGURE 24: AVERAGE ANNUAL WAGES FOR OCCUPATIONS FOR WAREHOUSE TENANT FOR NORTH PALISADE PARTNERS’

SUBJECT SITE DEVELOPMENT PROPOSAL
Major Occupation Category
Warehouse
Share of Warehouse Jobs Mean Annual Wage
Management 7.6% $166,441.16
Business and Financial Operations 5.0% $104,642.52
Computer and Mathematical 2.1% $137,026.00
Architecture and Engineering 0.6% $112,315.32
Life, Physical, and Social Science 0.3% $86,516.92
Community and Social Service 0.0% $84,225.00
Legal 0.1% $128,878.00
Educational Instruction and Library 0.0% $84,638.80
Arts, Design, Entertainment, Sports, and Media 1.0% $101,316.52 Healthcare Practitioner and Technical Occupations 0.2% $98,483.89 Healthcare Support 0.0% $63,715.40
Protective Service 0.0% $65,570.40
Food Preparation and Serving 0.0% $44,925.93
Building and Grounds Cleaning and Maintenance 0.4% $58,048.29 Personal Care and Service 0.0% $33,342.33
Sales and Related 14.5% $76,923.75
Office and Administrative Support 12.8% $56,268.29
Farming, Fishing, and Forestry Occupations 0.1% $21,273.22 Construction and Extraction 0.2% $69,100.83
Installation, Maintenance, and Repair 4.0% $55,739.02
Production 3.2% $47,250.53
Transportation and Material Moving 47.8% $53,151.64
Calculated Total, All Occupations 100% $76,921.85
Notes:
(a) Land uses are defined based on the following NAICS industries: Wholesale Trade (42), Couriers and Messengers (492), Warehousing and Storage (493).
(b) Occupation categories which have a stated annual wage but 0 percent share of jobs have a very small number of jobs that constitute less than 1 percent but which still exist within the industry.

Source: California Economic Development Department for the San Jose-Sunnyvale-Santa Clara MSA, Industry to Occupation Matrix for Q1 2022; Strategic Economics, 2024.

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Attachment: Informational 2 - Palisade Fremont Boulevard Economic Analysis (5337 : Palisade Fremont Boulevard) Market Assessment and Economic Benefits Analysis for Change of Use at 43990 Fremont Boulevard 27 ENTRY-LEVEL EDUCATION REQUIREMENTS
Entry-level education requirements for warehouse jobs provide opportunities for workers at a variety of education levels. As shown in Figure 25, an estimated 16 percent of jobs in industries associated with a warehouse space would require a bachelor’s degree or higher, compared to 74 percent jobs in which a high school diploma or equivalent or no formal educational credential would be required.

FIGURE 25: ENTRY LEVEL EDUCATION REQUIREMENTS FOR JOBS ASSOCIATED WITH WAREHOUSE USE

Source: California Economic Development Department for the Oakland-Hayward-Berkeley MD, Industry to Occupation Matrix for Q1 2022; California Economic Development Department for the San Jose-Sunnyvale-Santa Clara MSA Occupation Projections for 2020- 2030; Strategic Economics, 2024.

Employment and Workforce Opportunities Assessment:

Advanced Manufacturing Tenant Scenario

ON-SITE JOBS
Based on general job density assumptions by land use, Strategic Economics estimated that approximately 155 jobs would be associated with the development proposal if occupied by a n advanced manufacturing tenant. The job density assumptions and estimated new jobs are shown in Figure 26.

FIGURE 26: EMPLOYMENT DENSITY ASSUMPTION AND ON-SITE JOBS Land Use Square Feet
Jobs per Sq. Ft.

Assumption (a) New Jobs
Advanced Manufacturing 69,872 450 155
(a) The analysis applied generalized assumptions of ranges of jobs per square foot, based on Strategic Economics’ ongoing rev iew of available literature and past project experience. Actual outcomes will depend on the specific tenants that occupy any future industrial space at the site.

Source: Strategic Economics, 202.
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90%
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Doctoral or professional
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Master's degree
Bachelor's degree
Associate's degree
Some college, no degree
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Attachment: Informational 2 - Palisade Fremont Boulevard Economic Analysis (5337 : Palisade Fremont Boulevard) Market Assessment and Economic Benefits Analysis for Change of Use at 43990 Fremont Boulevard 28 OCCUPATION MIX
The development proposal for the Subject Site would accommodate a diverse mix of jobs by occupation, with the greatest numbers of jobs in computer and mathematical occupations for a manufacturing tenant. Figure 27 shows the breakdown of new jobs by occupation for a n advanced manufacturing tenant at the Subject Site. Of the 155 jobs at the Subject Site, 23.4 percent would consist of computer and mathematical occupations, 22.8 percent in production occupations, 13.9 percent in management occupations, and 1 1.3 percent in business and financial occupations. The remaining 28.7 percent of jobs would consist of jobs in a variety of occupations.

FIGURE 27: PROJECTED NEW JOBS BY OCCUPATION FOR ADVANCED MANUFACTURING TENANT FOR NORTH PALISADE PARTNERS’ SUBJECT SITE DEVELOPMENT PROPOSAL
Major Occupation Category Number of Jobs Percent of Jobs Management 21 13.9%
Business and Financial Operations 17 11.3%
Computer and Mathematical 36 23.4%
Architecture and Engineering 10 6.7%
Life, Physical, and Social Science 1 0.6%
Community and Social Service 0 0.0%
Legal 0 0.3%
Educational Instruction and Library 0 0.0%
Arts, Design, Entertainment, Sports, and Media 1 0.8%
Healthcare Practitioner and Technical Occupations 0 0.1% Healthcare Support 0 0.0%
Protective Service 0 0.0%
Food Preparation and Serving 0 0.0%
Building and Grounds Cleaning and Maintenance 0 0.2%
Personal Care and Service 0 0.0%
Sales and Related 7 4.2%
Office and Administrative Support 13 8.6%
Farming, Fishing, and Forestry Occupations 0 0.0%
Construction and Extraction 2 1.1%
Installation, Maintenance, and Repair 4 2.6%
Production 35 22.8%
Transportation and Material Moving 5 3.5%
Notes: Number of jobs are projected proportionally to the occupational mix of the MSA. Occupation categories which have a stated number of jobs as 0 have a small number of jobs within the MSA which, when estimated for this size development, constitute less than 1 job but which may still exist. Job counts do not sum to 155 due to rounding.

Source: California Economic Development Department for the San Jose-Sunnyvale-Santa Clara MSA, Industry to Occupation Matrix for Q1 2022; Strategic Economics, 2024.

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Attachment: Informational 2 - Palisade Fremont Boulevard Economic Analysis (5337 : Palisade Fremont Boulevard) Market Assessment and Economic Benefits Analysis for Change of Use at 43990 Fremont Boulevard 29 AVERAGE INCOME
Potential new jobs at the Subject Site are also associated with a variety of average annual wages .

Figure 28 shows the average annual wages associated with the mix of occupations within each major occupation category. The overall average annual wage for advanced manufacturing occupations is $79,119 but has a range between $54,000 and $178,000.

FIGURE 28: AVERAGE ANNUAL WAGES FOR OCCUPATIONS FOR ADVANCED MANUFACTURING TENANT FOR NORTH PALISADE PARTNERS’ SUBJECT SITE DEVELOPMENT PROPOSAL
Major Occupation Category
Manufacturing
Share of Manufacturing Jobs Mean Annual Wage
Management 13.9% $177,848.33
Business and Financial Operations 11.3% $105,372.96
Computer and Mathematical 23.4% $124,571.95
Architecture and Engineering 6.7% $112,983.97
Life, Physical, and Social Science 0.6% $93,610.29
Community and Social Service 0.0% $100,581.00
Legal 0.3% $118,405.00
Educational Instruction and Library 0.0% $89,165.00
Arts, Design, Entertainment, Sports, and Media 0.8% $95,550.39 Healthcare Practitioner and Technical Occupations 0.1% $129,780.60 Healthcare Support 0.0% $61,428.00
Protective Service 0.0% $81,712.86
Food Preparation and Serving 0.0% $44,840.00
Building and Grounds Cleaning and Maintenance 0.2% $54,969.20 Personal Care and Service 0.0% $36,897.25
Sales and Related 4.2% $82,501.81
Office and Administrative Support 8.6% $54,097.95
Farming, Fishing, and Forestry Occupations 0.0% $22,470.50 Construction and Extraction 1.1% $54,207.54
Installation, Maintenance, and Repair 2.6% $58,092.02
Production 22.8% $42,269.61
Transportation and Material Moving 3.5% $63,617.63
Calculated Total, All Occupations 100% $79,118.66
Notes:
(a) Land uses are defined based on the following NAICS industries: Computer Systems Design and Related Services (5415), Printing and Related Support Activities (323), Chemical Manufacturing (325), Nonmetallic Mineral Product Manufacturing (327), Fabricated Metal Product Manufacturing (332), Machinery Manufacturing (333), Computer and Electronic Product Manufacturing (334), Electrical Equipment and Appliances (335), Transportation Equipment Manufacturing (336), Furniture and Related Product Manufacturing (337), Miscellaneous Manufacturing (339). (b) Occupation categories which have a stated annual wage but 0 percent share of jobs have a very small number of jobs that constitute less than one percent but which still exist within the industry.

Source: California Economic Development Department for the San Jose-Sunnyvale-Santa Clara MSA, Industry to Occupation Matrix for Q1 2022; Strategic Economics, 2024.

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Attachment: Informational 2 - Palisade Fremont Boulevard Economic Analysis (5337 : Palisade Fremont Boulevard) Market Assessment and Economic Benefits Analysis for Change of Use at 43990 Fremont Boulevard 30 ENTRY-LEVEL EDUCATION REQUIREMENTS
Entry-level education requirements for advanced manufacturing jobs provide opportunities for workers at a variety of education levels but are overall skewed towards workers with a college degree. As shown in Figure 29, an estimated 50 percent of jobs in a n advanced manufacturing space would require a bachelor’s degree or higher, compared to 43 percent of jobs in which a high school diploma or equivalent or no formal educational credential would be required.

FIGURE 29: ENTRY LEVEL EDUCATION REQUIREMENTS FOR ADVANCED MANUFACTURING USE

Source: California Economic Development Department for the Hayward-Oakland-Fremont MD, Industry to Occupation Matrix for Q1 2022; California Economic Development Department for the San Jose-Sunnyvale-Santa Clara MSA Occupation Projections for 2020- 2030; Strategic Economics, 2024.

Employment and Workforce Opportunities Assessment: Comparison of Uses
Fewer jobs would be associated with a warehouse use than an advanced manufacturing use. A warehouse tenant could be expected to produce roughly 69 jobs compared to the 155 from advanced manufacturing. This is due to the greater space requirements relative to the number of warehouse workers. The development applicant has expressed interest in targeting advanced manufacturing tenants. Actual job counts will vary depending on the actual tenant and their operations.

Average worker wages are higher for the advanced manufacturing use. Warehouse uses have a n estimated average wage of $77,000, while advanced manufacturing exceeds this with an estimated average wage of $ 79,000. Advanced manufacturing uses also have a higher maximum wage range than warehouse uses. Both uses provide for a diverse mix of jobs with a large range of estimated wages.

Entry-level education requirements for jobs vary significantly by land use, with warehouse jobs providing the greatest diversity of opportunities for workers at a variety of education levels. While both potential uses provide a range of opportunities available at varying educational levels, the projected jobs for advanced manufacturing have a much higher percentage of jobs requiring a bachelor’s degree or higher.
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Doctoral or professional
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Associate's degree
Some college, no degree
Postsecondary non-degree
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Attachment: Informational 2 - Palisade Fremont Boulevard Economic Analysis (5337 : Palisade Fremont Boulevard) Market Assessment and Economic Benefits Analysis for Change of Use at 43990 Fremont Boulevard 31 Fiscal Contributions to the City of Fremont
Strategic Economics estimated public gross revenues associated with North Palisade Partners ’ proposed industrial development project at the Subject Site. Estimated annual recurring revenues included property tax (accruing both to Fremont and other applicable tax jurisdictions), sales tax, and business license tax. The analysis estimated these revenues for a single year upon full buildout and stabilized occupancy of the development project, as well as a ten-year projection of these revenues.

Strategic Economics also estimated one -time impact fee revenue with assistance from the City of Fremont. All dollar amounts are expressed in 202 4 dollars unless stated otherwise . Strategic Economics assumed that either a warehouse tenant or an advanced manufacturing tenant could occupy the space. Due to differences in estimated workers, wages, and fees associated with these use types, the analysis was conducted using two scenarios. The following section presents the results first by scenario 1: all square footage is occupied by a warehouse tenant, followed by the results for scenario 2: all square footage is occupied by an advanced manufacturing tenant.

Fiscal Contributions: Warehouse Tenant

SECURED PROPERTY TAX
The proposed industrial development project at the Subject Site was estimated to generate approximately $226,603 in annual secured property tax revenue, with the City of Fremont receiving $30,054 of this revenue and the Fremont Unified School District receiving approximately $47,785 of this revenue. The distribution of this property tax is shown in Figure 30. This property tax revenue reflects revenue based on the assessed value of “secured” property ( i.e., the value of land and improvements). The City of Fremont would also receive additional unsecured property tax revenue levied on the value of property such as business fixtures and equipment; unsecured property tax revenue could vary widely depending on the types of businesses that locate at the Subject Site, but these revenues could be significant for some businesses. If the industrial development project does not move forward and the site instead remains vacant, the City of Fremont would only receive minimal property taxes based on the assessed value of the vacant land and existing relatively small commercial building. The following assumptions were incorporated in the analysis:
• The analysis assumed an assessed value of the property at $288 per square foot of building area. This valuation was based on an estimated total cost of land and the hard costs of improvements provided by North Palisade Partners . Excluding land, the estimated cost of improvements was approximately $1 84 per square foot of building area. For additional context, a review of assessed values for the improvements on industrial properties that were built in recent years in Fremont found average values within the range of $100 to $224 per square foot.

• The applicable overall ad valorem tax rate for all applicable jurisdictions is 1. 1272 percent.

Fremont receives 14.58 percent of the base one percent property tax rate as of 2024, after adjusting for Educational Revenue Augmentation Fund shifts to the state . Fremont also receives an additional .0037 percent of assessed value for voter-approved debt service.

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Attachment: Informational 2 - Palisade Fremont Boulevard Economic Analysis (5337 : Palisade Fremont Boulevard) Market Assessment and Economic Benefits Analysis for Change of Use at 43990 Fremont Boulevard 32 FIGURE 30: WAREHOUSE TENANT: PROPERTY TAX REVENUE ASSUMPTIONS AND CALCULATION Total Building Area in Square Feet 69,872
Assessed Value of Land and Improvements @ $245 per Square Foot $20,103,142

Ad Valorem Property Tax
Ad Valorem Property Tax Revenue, All Jurisdictions
General Levy @ 1.0% of Assessed Value $201,031
Additional Voter-Approved Property Tax for Debt Service @ .127% $25,571 Total Property Tax Revenue, All Jurisdictions $226,603

Ad Valorem Property Tax Revenue, City of Fremont
City of Fremont Share of General Levy @ 14.58% of 1% $29,310 City of Fremont Voter-Approved Property Tax for Debt Service @ .0037% $744 Total $30,054

Ad Valorem Property Tax Revenue, Fremont Unified School District Only Fremont Unified School District Share of General Levy @ 19.2% of 1% $38,598 Fremont Unified School District Voter-Approved Tax @ .0457% $9,187 Total $47,785
Note: Numbers may not sum due to rounding.

Source: City of Fremont, 2024; Strategic Economics, 2024.

BUSINESS TAX
Businesses at the proposed industrial development project at the Subject Site were estimated to generate $65 in annual business tax revenue with a warehouse tenant . Figure 31 shows the calculation basis, inputs, and business license tax revenue associated with the assumed warehouse land use.

FIGURE 31: WAREHOUSE TENANT: ANNUAL BUSINESS TAX REVENUE AND CALCULATION BASIS Land Use Calculation Basis Annual Business Tax Revenue
Warehouse $65 per 50,000 sq. ft. $65
Source: City of Fremont Fee Schedule, effective March 13, 2024; Strategic Economics, 2024.

SALES TAX
The proposed industrial development project at the Subject Site was estimated to generate $48,397 in annual sales tax revenue for the City of Fremont. This estimate was based on sales tax data provided the City of Fremont, which showed that the City receive d $25,157,372 of sales tax revenue from its industrial zones over the past four quarters. This was divided by the total industrial square footage in Fremont for an estimate of $0.69 per square foot.

The approximately 69 workers at the proposed industrial development project with a warehouse tenant would also generate additional spending at retail adjacent to the Subject Site. For example, the International Council of Shopping Centers estimates that office workers in urban areas spent an

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Attachment: Informational 2 - Palisade Fremont Boulevard Economic Analysis (5337 : Palisade Fremont Boulevard) Market Assessment and Economic Benefits Analysis for Change of Use at 43990 Fremont Boulevard 33 average of $135 per week at retail and food establishments as of 2012.9 Workers at the Subject Site would support vitality of existing retail and generate additional sales tax revenue.

TOTAL TEN-YEAR OPERATING REVENUES
Based on the preceding estimates of property tax, business tax, and sales tax revenue, the City of Fremont was estimated to receive $78,517 in recurring annual revenue upon buildout and stabilized occupancy of the proposed industrial development project with a warehouse tenant , representing more than $783,733 over the following ten-year period (in 2024 dollars). Assumptions incorporated in the estimate included:
• Assessed values grow at two percent annually, based on the maximum allowable increase under Proposition 13
• Gross payroll increases by 3. 3 percent annually for purposes of calculating business taxes, based on the average of quarterly year -over-year wage and salary increases tracked by the Bureau of Labor Statistics for the San Jose-San Francisco-Oakland region • Sales tax revenue increases four percent annually, based on the California Department of Tax and Fee Administration average growth in All Other Outlet taxable sales (a proxy for business- to-business transactions) in Fremont for the 2014-2020 period10 • Annual inflation of 2.8 percent, approximately based on the average year-over-year change in the Bay Area Consumer Price Index from 2014 to 2023
FIGURE 32: WAREHOUSE TENANT: REVENUE, YEAR 1 BUILDOUT AND STABILIZED OCCUPANCY, AND TEN-YEAR REVENUE (2024 DOLLARS)
Tax Revenue Source Year 1
Total, Years 1-
10 (2024
Dollars)
Property Tax: All Jurisdictions $226,603 $2,141,912
Property Tax: Fremont Only $30,054 $284,081
Property Tax: Fremont Unified School District $47,785 $451,679 Business Tax: Warehouse $65 $650
Sales Tax $48,397 $499,002
Total Annual Revenue, Fremont Only $78,517 $783,733
Source: Strategic Economics, 2024.

9 “Office-Worker Retail Spending in a Digital Age,” International Council of Shopping Centers, 2012. 10 Years after 2020 were not included in this calculation due to the unusual variability in sales tax revenue resulting from the COVID -19 pandemic, followed by an inadvertent overestimate and overpayment by CDTFA in fiscal year 2022 -2023, and the first of two corrective reductions in payments that took place in the following year.

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Attachment: Informational 2 - Palisade Fremont Boulevard Economic Analysis (5337 : Palisade Fremont Boulevard) Market Assessment and Economic Benefits Analysis for Change of Use at 43990 Fremont Boulevard 34 ONE TIME IMPACT FEE REVENUE
The proposed industrial development project would provide $510,007 in required one-time impact fees to mitigate the project’s impacts if fees are charged based on a warehouse use . The City of Fremont imposes impact fees to ensure development projects mitigate their own impacts on the City’s capital facilities, fire facilities, traffic, and affordable housing needs.

FIGURE 33: WAREHOUSE TENANT: ONE-TIME IMPACT FEE REVENUE Fees Fee Basis Square Feet Fee Amount Owed
Estimated Fees Owed Before Credits
Capital Facilities (per 1,000 sq ft) $543 69,872 $37,940.50 Fire Facilities (per 1,000 sq ft) $449 69,872 $31,372.53 Traffic (per 1,000 sq ft) $4,171 69,872 $291,436.11
Affordable Housing (per sq ft) $5.82 69,872 $406,655.04 Total Fees Owed Before Credits $767,404.18

Estimated Fee Credits for Prior Uses
Demolished Warehouse Building
Capital Facilities (per 1,000 sq ft) $543 41,495 -$22,531.79 Fire Facilities (per 1,000 sq ft) $449 41,495 -$18,631.26 Traffic (per 1,000 sq ft) $4,171 41,495 -$173,075.65
Affordable Housing (per sq ft) n/a n/a n/a
Extant Office Building
Capital Facilities (per 1,000 sq ft) $1,269 4,760 -$6,040.44 Fire Facilities (per 1,000 sq ft) $752 4,760 -$3,579.52 Traffic (per 1,000 sq ft) $7,046 4,760 -$33,538.96
Affordable Housing (per sq ft) n/a n/a n/a
Total Fee Credits -$257,397.61

Estimated Fees Owed After Credits
Capital Facilities (per 1,000 sq ft) $9,368.27
Fire Facilities (per 1,000 sq ft) $9,161.75
Traffic (per 1,000 sq ft) $84,821.51
Affordable Housing (per sq ft) $406,655.04
Total Fees Owed After Credits $510,006.57
Source: City of Fremont Fee Schedule, Effective July 8, 2024; Strategic Economics, 2024.

Fiscal Contributions: Advanced Manufacturing Tenant

SECURED PROPERTY TAX
The proposed industrial development project at the Subject Site was estimated to generate approximately $226,603 in annual secured property tax revenue, with the City of Fremont receiving $30,054 of this revenue and the Fremont Unified School District receiving $47,785 of this revenue.

The distribution of this property tax is shown in Figure 34. This property tax revenue reflects revenue based on the assessed value of “secured” property (i.e., the value of land and improvements). The calculation methodology, assumptions, and resulting property tax revenues match the previous scenario in which a warehouse tenant occupies the space, since the tenant will not significantly impact the value of the property.

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Attachment: Informational 2 - Palisade Fremont Boulevard Economic Analysis (5337 : Palisade Fremont Boulevard) Market Assessment and Economic Benefits Analysis for Change of Use at 43990 Fremont Boulevard 35 FIGURE 34: ADVANCED MANUFACTURING TENANT: PROPERTY TAX REVENUE ASSUMPTIONS AND CALCULATION Total Building Area in Square Feet 69,872
Assessed Value of Land and Improvements @ $245 per Square Foot $20,103,142

Ad Valorem Property Tax
Ad Valorem Property Tax Revenue, All Jurisdictions
General Levy @ 1.0% of Assessed Value $201,031
Additional Voter-Approved Property Tax for Debt Service @ .127% $25,571 Total Property Tax Revenue, All Jurisdictions $226,603

Ad Valorem Property Tax Revenue, City of Fremont
City of Fremont Share of General Levy @ 14.58% of 1% $29,310 City of Fremont Voter-Approved Property Tax for Debt Service @ .0037% $744 Total $30,054

Ad Valorem Property Tax Revenue, Fremont Unified School District Only Fremont Unified School District Share of General Levy @ 19.2% of 1% $38,598 Fremont Unified School District Voter-Approved Tax @ .0457% $9,187 Total $47,785
Note: Numbers may not sum due to rounding.

Source: City of Fremont, 2024; Strategic Economics, 2024.

BUSINESS TAX
Advanced manufacturing businesses at the proposed industrial development project at the Subject Site were estimated to generate $ 3,679 in annual business tax revenue. Figure 35 shows the calculation basis, inputs, and business license tax revenue associated with the assumed advanced manufacturing land use.

FIGURE 35: ADVANCED MANUFACTURING TENANT: ANNUAL BUSINESS TAX REVENUE AND CALCULATION BASIS Land Use Jobs Average Wage Calculation Basis
Annual Business
Tax Revenue
Manufacturing 155 $79,119 $.3 per $1,000 of gross payroll $3,679 Source: City of Fremont Fee Schedule, effective March 13, 2024; Strategic Economics, 2024.

SALES TAX
The proposed industrial development project at the Subject Site was estimated to generate $48,397 in annual sales tax revenue for the City of Fremont. As with the warehouse tenant scenario, t his estimate was based on sales tax data provided by the City of Fremont, which showed that the City receives $0.69 of sales tax revenue from “Industrial” businesses per square foot of industrial space in Fremont.

The approximately 155 workers at the proposed industrial development project with an advanced manufacturing tenant would also generate additional spending at retail adjacent to the Subject Site.

Since an advanced manufacturing tenant was estimated to include 86 more workers on-site than a comparable warehouse tenant, the manufacturing use will generate a greater impact on worker spending and sales tax revenue.

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Attachment: Informational 2 - Palisade Fremont Boulevard Economic Analysis (5337 : Palisade Fremont Boulevard) Market Assessment and Economic Benefits Analysis for Change of Use at 43990 Fremont Boulevard 36 TOTAL TEN-YEAR OPERATING REVENUES
Based on the preceding estimates of property tax, business tax, and sales tax revenue, the City of Fremont is estimated to receive $82,131 in recurring annual revenue upon buildout and stabilized occupancy of the proposed industrial development project with an advanced manufacturing tenant , representing over $819,873 over the following ten -year period (in 2024 dollars). Assumptions incorporated in the estimate included match those of the warehouse 10 -year revenue estimate described earlier.

FIGURE 36: ADVANCED MANUFACTURING TENANT: REVENUE, YEAR 1 BUILDOUT AND STABILIZED OCCUPANCY, AND TEN-YEAR REVENUE (2024 DOLLARS)
Tax Revenue Source Year 1
Total, Years 1-
10 (2024
Dollars)
Property Tax: All Jurisdictions $226,603 $2,141,912
Property Tax: Fremont Only $30,054 $284,081
Property Tax: Fremont Unified School District $47,785 $451,679 Business Tax: Advanced Manufacturing $3,679 $36,790
Sales Tax $48,397 $499,002
Total Annual Revenue, Fremont Only $82,131 $819,873
Source: Strategic Economics, 2024.

ONE TIME IMPACT FEE REVENUE
The proposed industrial development project would provide $482,966 in required one -time impact fees to mitigate the project’s impacts if fees are charged based on an advanced manufacturing use.

The City of Fremont imposes impact fees to ensure development projects mitigate their own impacts on the City’s capital facilities, fire facilities, traffic, and affordable housing needs.

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Attachment: Informational 2 - Palisade Fremont Boulevard Economic Analysis (5337 : Palisade Fremont Boulevard) Market Assessment and Economic Benefits Analysis for Change of Use at 43990 Fremont Boulevard 37 FIGURE 37: ADVANCED MANUFACTURING TENANT: ONE-TIME IMPACT FEE REVENUE Fees Fee Basis Square Feet Fee Amount Owed
Estimated Fees Owed Before Credits
Capital Facilities (per 1,000 sq ft) $772 69,872 $53,941.18 Fire Facilities (per 1,000 sq ft) $458 69,872 $32,001.38 Traffic (per 1,000 sq ft) $3,546 69,872 $247,766.11
Affordable Housing (per sq ft) $5.82 69,872 $406,655.04 Total Fees Owed Before Credits $740,363.71

Estimated Fee Credits for Prior Uses
Demolished Warehouse Building
Capital Facilities (per 1,000 sq ft) $543 41,495 -$22,531.79 Fire Facilities (per 1,000 sq ft) $449 41,495 -$18,631.26 Traffic (per 1,000 sq ft) $4,171 41,495 -$173,075.65
Affordable Housing (per sq ft) n/a n/a n/a
Extant Office Building
Capital Facilities (per 1,000 sq ft) $1,269 4,760 -$6,040.44 Fire Facilities (per 1,000 sq ft) $752 4,760 -$3,579.52 Traffic (per 1,000 sq ft) $7,046 4,760 -$33,538.96
Affordable Housing (per sq ft) n/a n/a n/a
Total Fee Credits -$257,397.61

Estimated Fees Owed After Credits
Capital Facilities (per 1,000 sq ft) $25,368.96
Fire Facilities (per 1,000 sq ft) $9,790.60
Traffic (per 1,000 sq ft) $41,151.51
Affordable Housing (per sq ft) $406,655.04
Total Fees Owed After Credits $482,966.11
Source: City of Fremont Fee Schedule, Effective July 8, 2024; Strategic Economics, 2024.

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Attachment: Informational 2 - Palisade Fremont Boulevard Economic Analysis (5337 : Palisade Fremont Boulevard) Market Assessment and Economic Benefits Analysis for Change of Use at 43990 Fremont Boulevard 38 Comparison of Fiscal Contributions by Tenant Type
The fiscal contributions differ based on whether the space is occupied by a warehouse user or an advanced manufacturing user. The primary drivers of the differences are different business tax and impact fee structures which vary by use. As shown below in Figure 38, an advanced manufacturing user would contribute more revenue to the City of Fremont over time. Figure 38 also shows the estimated range of the project’s required one -time impact fee payments based on whether the City chooses to charge fees to the project as a warehouse use or manufacturing use.

FIGURE 38. COMPARISON OF ESTIMATED YEAR 1 AND TOTAL REVENUE BY TENANT TYPE (2024 DOLLARS) Tax Revenue Source
Warehouse Tenant

Advanced Manufacturing Tenant
Year 1 Total, Years 1-10
(2024 Dollars) Year 1 Total, Years 1-10
(2024 Dollars)

Property Tax: All Jurisdictions $226,603 $2,141,912 $226,603 $2,141,912 Property Tax: Fremont Only $30,054 $284,081 $30,054 $284,081 Property Tax: Fremont Unified
School District Only $47,785 $451,679 $47,785 $451,679 Business Tax: Advanced Manufacturing N/A N/A $3,679 $36,790 Business Tax: Warehouse $65 $650 N/A N/A
Sales Tax $48,397 $499,002 $48,397 $499,002
Total Annual Revenue, Fremont Only $78,517 $783,733 $82,131 $819,873 Total One-Time Impact Fee Revenue $510,007 $482,966
Source: Strategic Economics, 2024.

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Attachment: Informational 3 - Project Renderings (5337 : Palisade Fremont Boulevard)

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Attachment: Informational 3 - Project Renderings (5337 : Palisade Fremont Boulevard)

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Attachment: Informational 3 - Project Renderings (5337 : Palisade Fremont Boulevard)

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Attachment: Informational 3 - Project Renderings (5337 : Palisade Fremont Boulevard)

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Attachment: Informational 3 - Project Renderings (5337 : Palisade Fremont Boulevard) From: Laura Alman
To: James Willis
Subject: Support for the Palisade Fremont Blvd. Project Date: Wednesday, November 27, 2024 7:29:00 AM
Dear Hon. Planning Commissioners and Planning Staff,
I am writing to express my strong support for the new advanced manufacturing project located at 43990 Fremont Blvd. I grew up in Fremont, my parents still reside there, and I am a Bay Area business owner. I support this project because it will:

· Revitalize a lot that has been vacant for over 20 years · Create new advanced manufacturing jobs in our community · Further the City of Fremont’s goals of becoming a leader in high-tech manufacturing
· Provide fiscal benefits for the City of Fremont · Strengthen our local economy and contribute to the high-tech manufacturing ecosystem that thrives in the City of Fremont We commend the city’s efforts in supporting projects like this one and urge the city to approve this new development. We are confident that it will provide lasting benefits to our community and contribute to a vibrant, prosperous future for the City of Fremont.

Thank you for your consideration of this transformative project.

Sincerely,
Laura Alman

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Attachment: Informational 4 - Public Correspondence (5337 : Palisade Fremont Boulevard) From: Richard McKay
To: James Willis
Subject: Community Support for the Palisade Fremont Blvd. Project Date: Wednesday, November 27, 2024 4:57:22 PM
Dear Mr. Willis,
I am writing to express my strong support for the new advanced manufacturing project located at 43990 Fremont Blvd. As a long time City of Fremont resident, I support this project because it will:
·         Revitalize a lot that has been vacant for over 20 years ·         Create new advanced manufacturing jobs in our community ·         Further the City of Fremont’s goals of becoming a leader in high-tech manufacturing
·         Provide fiscal benefits for the City of Fremont ·         Strengthen our local economy and contribute to the high-tech manufacturing ecosystem
that thrives in the City of Fremont

I commend the city’s efforts in supporting projects like this one and urge the city to approve this new development. I am confident that it will provide lasting benefits to our community and contribute to a vibrant, prosperous future for the City of Fremont.

Thank you for your consideration of this transformative project.

Sincerely,
Richard D. McKay
Sent from my iPad

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Attachment: Informational 4 - Public Correspondence (5337 : Palisade Fremont Boulevard) From: Mark Doty
To: Charles Liu; Yonggang Zhang; Jasmine Basrai; Shobana Ramamurthi; Benjie Craig; Benjamin Yee Cc: James Willis; Clifford Nguyen
Subject: Neighbor Support for the Palisade Fremont Blvd. Project Date: Friday, November 29, 2024 2:32:38 PM
Dear Commissioners,

I am writing to express my support for the new advanced manufacturing project located at 43990 Fremont Blvd. As the owner of the neighboring property and former REI site, I support this project because it will:

Revitalize a lot that has been vacant for over 20 years Create new advanced manufacturing jobs in our community Further the City of Fremont’s goals of becoming a leader in high-tech manufacturing Provide fiscal benefits for the City of Fremont
I commend the City’s efforts in supporting projects like this one and urge the City to approve this new development. I am confident that it will provide lasting benefits to our community and contribute to a vibrant, prosperous future for the City of Fremont.

Thank you for your consideration of this transformative project.

Sincerely,
Mark Doty

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Attachment: Informational 4 - Public Correspondence (5337 : Palisade Fremont Boulevard) From: Larry Snyder
To: Charles Liu; Yonggang Zhang; Jasmine Basrai; Shobana Ramamurthi; Benjie Craig; Benjamin Yee Cc: James Willis; Clifford Nguyen
Subject: Support for the Palisade Fremont Blvd. Project Date: Tuesday, December 3, 2024 3:59:44 PM
Dear Commissioners,

As someone who has been involved with the City of Fremont since 1959 - growing up here, playing youth sports, JFK graduate, being a business owner in the City and participating in the General Plan Update in 1989 - I want to express my strong support for the proposed advanced manufacturing project that North Palisade Partners plans to develop.

This project will revitalize a parcel of land that has remained vacant for over 20 years. I am excited to see this site become home to a new advanced manufacturing tenant, continuing the City's legacy as a leader in clean tech and manufacturing within the East Bay community.

Thank you for your consideration of this project.

Sincerely,

Larry Snyder
Hugo Development Co., LLC

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Attachment: Informational 4 - Public Correspondence (5337 : Palisade Fremont Boulevard) From: Mike Biggar
To: Charles Liu; Yonggang Zhang; Jasmine Basrai; Shobana Ramamurthi; Benjie Craig; Benjamin Yee Cc: James Willis; Clifford Nguyen
Subject: Community Support for the Palisade Fremont Blvd. Project Date: Wednesday, December 4, 2024 4:21:41 PM
Dear Commissioners,

I am writing to express my strong support for the new advanced manufacturing project located at 43990 Fremont Blvd which you will be considering at the next Planning Commission meeting. As an owner of industrial property in Fremont, I support this project because it will:

Revitalize a lot that has been vacant for over 20 years Create new advanced manufacturing jobs in our community Further the City of Fremont’s goals of becoming a leader in high-tech manufacturing Provide fiscal benefits for the City of Fremont
Strengthen our local economy and contribute to the high-tech manufacturing ecosystem that thrives in the City of Fremont
We commend the City’s efforts in supporting projects like this one and urge the City to approve this new development. We are confident that it will provide lasting benefits to our community and contribute to a vibrant, prosperous future for the City of Fremont.

Thank you for your consideration of this project.

Sincerely,

Mike Biggar

Michael J. Biggar | Managing Partner
Orchard Partners, LLC
615 National Avenue  | Suite 200  | Mountain View, CA 94043 Cell:  408-888-6200
[email protected] | www.orchardpartners.com

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Attachment: Informational 4 - Public Correspondence (5337 : Palisade Fremont Boulevard) From: Don Tepman
To: Charles Liu; Yonggang Zhang; Jasmine Basrai; Shobana Ramamurthi; Benjie Craig; Benjamin Yee Cc: James Willis; Clifford Nguyen
Subject: Neighbor Support for the Palisade Fremont Blvd. Project Date: Tuesday, December 10, 2024 12:07:23 PM
Dear Commissioners,

I am writing to express my strong support for the new advanced manufacturing project located at 43990 Fremont Blvd. As the owner of the neighboring strip mall, I support this project because it will:

Revitalize a lot that has been vacant for over 20 years Create new advanced manufacturing jobs in our community Further the City of Fremont’s goals of becoming a leader in high-tech manufacturing Provide fiscal benefits for the City of Fremont
Strengthen our local economy and contribute to the high-tech manufacturing ecosystem that thrives in the City of Fremont
I commend the City’s efforts in supporting projects like this one and urge the City to approve this new development. I am confident that it will provide lasting benefits to our community and contribute to a vibrant, prosperous future for the City of Fremont.

Thank you for your consideration of this transformative project.

Sincerely,
Don Tepman
--
Don Tepman
President and Founder
TownCentre Capital
Main: 415.321.2828
Mobile: 408.966.5177
[email protected]
www.towncentrecapital.com
* Please note my email has been updated

University Avenue Partners is now TownCentre Capital

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Attachment: Informational 4 - Public Correspondence (5337 : Palisade Fremont Boulevard) From: Emily Gargan
To: Charles Liu; Yonggang Zhang; Jasmine Basrai; Shobana Ramamurthi; Benjie Craig; Benjamin Yee Cc: James Willis; Clifford Nguyen
Subject: Community Support for the Palisade Fremont Blvd. Project Date: Tuesday, December 10, 2024 7:30:14 PM
Dear Commissioners,

I am writing to express my strong support for the new advanced manufacturing project located at 43990 Fremont Blvd. As a resident of the East Bay, I support this project because it will:

Revitalize a lot that has been vacant for over 20 years Create new advanced manufacturing jobs in our community Further the City of Fremont’s goals of becoming a leader in high-tech manufacturing
Provide fiscal benefits for the City of Fremont
Strengthen our local economy and contribute to the high-tech manufacturing ecosystem that thrives in the City of Fremont
We commend the City’s efforts in supporting projects like this one and urge the City to approve this new development. We are confident that it will provide lasting benefits to our community and contribute to a vibrant, prosperous future for the City of Fremont.

Thank you for your consideration of this project.

Sincerely,
Emily Gargan

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Attachment: Informational 4 - Public Correspondence (5337 : Palisade Fremont Boulevard)

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Attachment: Informational 4 - Public Correspondence (5337 : Palisade Fremont Boulevard)

BOARD MEMBERS 43885 SOUTH GRIMMER BOULEVARD • FREMONT, CALIFORNIA 94538 (510) 668-4200 • www.acwd.org

MANAGEMENT

AZIZ AKBARI
JAMES G. GUNTHER
JUDY C. HUANG

PAUL SETHY
JOHN H. WEED

ED STEVENSON
General Manager

DAN STEVENSON
Operations and Maintenance

GIRUM AWOKE
Engineering and Technology
LAURA J. HIDAS
Water Resources

JONATHAN WUNDERLICH
Finance and Administration

JACKIE MCCLOUD
Special Assistant to the General Manager

December 3, 2024

VIA ELECTRONIC MAIL
James Willis, Senior Planner ([email protected])
City of Fremont
39550 Liberty Street
Fremont CA 94537

Dear Mr. Willis:

Subject: Notice of Public Review and Intent to Adopt a Negative Declaration for the Palisade Fremont Blvd GPA (PLN2024-00080) project located at Fremont Boulevard and Ice House Terrace, Fremont, CA 94538

The Alameda County Water District (ACWD) wishes to thank you for the opportunity to comment on the Draft Initial Study/Negative Declaration (IS/ND) for the Palisade Fremont Boulevard Project (“Project,” or “Development”). ACWD has reviewed the Draft IS/ND and would appreciate your consideration of the following comments:

1. Groundwater:
a. Hazards and Hazardous Materials : Appendix E of the Draft IS/ND provides a Phase I Environmental Site Assessment (ESA) to evaluate the Project area and adjacent areas for potential environmental conditions, including impacts and risks. The Phase I ESA identified two (2) properties/listings determined to present a higher potential risk for environmental concerns to the Project site, including a former Leaking Underground Storage Tank (LUST) site, Wicks Pacific Supply Lumber.
i. The Draft IS/ND should acknowledge that as part of ACWD’s Groundwater Protection Program, ACWD entered into Cooperative Agreements with both the California Regional Water Quality Control Board – San Francisco Bay Region (Regional Board) and the City of Fremont (City), which allows ACWD to provide technical oversight for the investigation and remediation at LUST sites and sites where the pollution is attributed to spills or leaks from structures other than underground fuel tanks now referred to as Site Clean up Program sites or SCP (formerly known as Spills, Leaks, Investigation, and Cleanup sites or SLIC sites). These Cooperative Agreements further strengthen the interagency coordination and cost -effective implementation of groundwater protection within the City in order to protect the Niles Cone Groundwater Basin. As a result, ACWD requests that Project proponents notify ACWD if any soil and/or groundwater contamination is encountered.
/ITCWD
HfHHEDH CDUIVTY WHTEH o,sra,cr

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Attachment: Informational 5 - ACWD Comments December 3, 2024 (5337 : Palisade Fremont Boulevard) City of Fremont, Mr. James Willis

December 3rd, 2024
ii. A cc
ording to records held by ACWD, a Phase II Soil and Groundwater Investigation was conducted at a property in the vicinity of the Project site which does not appear to have been evaluated as part of the Draft IS/ND or appended Phase I ESA. The Report for the Phase II Soil and Groundwater Investigation (Phase II Report) is dated June 2, 2000, and was conducted by URS/Dames & Moore at 43962 Fremont Boulevard; however, site vicinity maps provided as part of the Phase II Report suggest the investigated area i s coincident with the proposed Project area. The results from the Phase II Soil and Groundwater Investigation indicate that relatively low concentrations of petroleum hydrocarbons (as diesel and motor oil) are present in soil from 1 to 6 feet below ground surface (bgs) and in shallow groundwater. The data provided in the Phase II Report should be considered during development of the forthcoming soil management plan (SMP) to be developed for the Project area. b. H
ydr
ology and Water Quality:
iii. The impact analysis provided for item (b ) of Section 4.10.1 of the Draft IS/ND discusses the groundwater setting in the Project area and notes that the Project site is located within the Niles Cone Groundwater Basin (Niles Cone Subbasin 2- 09.01 or Niles Cone). This discussion does not include mention of ACWD’s groundwater management activities in particular. For over 100 years, ACWD has managed the groundwater of the Niles Cone through comprehensive programs that protect and improve water supplies for all groundwater users. ACWD requests that this additional information be provided in the IS/ND.
iv. The impact analysis provided for item (e) of Section 4.10.1 of the Draft IS/ND evaluates whether the Project would conflict with or obstruct implementation of the Sustainable Groundwater Management Act (SGMA).
a. A CW
D is identified within SGMA as an agency created by statute to manage groundwater and deemed to be the exclusive local agency within its statutory boundaries to comply with SGMA. ACWD requests that this additional information be provided in the IS/ND.
b. P
ages
4-67 and 4-68 of the Draft IS/ND specify that ACWD submitted an Alternative Update to the California Department of Water Resources (DWR) on December 29, 2021. Please note that the Alternative Update was approved by DWR on June 27, 2024.
c. P age 4 -6
8 of the Draft IS/ND states, “Operation of the proposed project would likely involve the use of both surface and groundwater as potable water. However, ACWD has sufficient water supplies to meet normal- year demands through 2045. If a deficiency were to occur, ACWD would take actions to attempt to maintain appropriate groundwater levels, including:
maximizing the import of additional water for artificial recharge of the groundwater basin; reducing use of local groundwater; and maximizing use of imported supplies .” This excerpt may imply that ACWD would take actions to offset deficiencies caused by the Project dewatering . Please see comment 1.e below.

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Attachment: Informational 5 - ACWD Comments December 3, 2024 (5337 : Palisade Fremont Boulevard) City of Fremont, Mr. James Willis

December 3rd, 2024

d. Page 4-63 of the Draft IS/ND cite s the “ The 2020-2050 Urban Water Management Plan (UWMP) …,” however, it is the “2020-2025” UWMP.

ACWD requests the title of the referenced UWMP be corrected on this page and in occurrences throughout the document.

c. Groundwater Well Protection/Destruction:
i. Groundwater Well Destruction and Drilling Permits: As required by ACWD Ordinance No. 2010- 01, drilling permits are required prior to the start of any subsurface drilling activities for wells, exploratory holes, and other excavations including the installa tion of support piers, piles (sheet piles), or caissons within the City of Fremont (City). Application for a permit may be obtained from ACWD’s Engineering Department, at 43885 South Grimmer Boulevard, Fremont or online at http://www.acwd.org. All permitted work requires scheduling for inspection; therefore, all drilling activities must be coordinated with ACWD prior to the start of any field work.

ii. ACWD has identified a monitoring well 5S/1W-11M004 located within the Project area. However, the well could not be field verified during two occasions (specifically on May 7, 2024, and July 31, 2024), which were performed by project proponents to look for and verify the well. To protect the groundwater basin, if t his well is located during development activities within the project area , it must be in compliance with ACWD Ordinance No. 2010-01. Project proponents must notify ACWD, and the well must be either protected and brought into compliance with ACWD Ordinance No 2010-01 or properly destroyed. If the well is to remain, a letter indicating so must be sent to ACWD.

d. Stormwater Management: Section 2.2.6.3 of the Draft IS/ND indicates that stormwater on the Project site would be directed to bioretention areas, which “would collect and treat stormwater before discharging into existing City storm drain lines.” ACWD appreciates the biotreatmen t of stormwater in bioretention areas in order to impede runoff from rapidly infiltrating the subsurface and bypassing soils which have the capacity to remove pollutants and protect the groundwater supply.

As previously discussed, the Project site has known groundwater contamination and specific stormwater devices could present an unacceptable long-term risk to beneficial uses of groundwater.

Therefore, ACWD requests the IS/ND include a provision that requires Project proponents coordinate any drainage design and stormwater treatment measure implementation with ACWD, prior to implementation and City approval.

e. Dewatering: The Draft IS/ND indicates that dewatering and shoring of groundwater may be required during construction activities involving excavation. ACWD requests that Project proponents coordinate the design to ensure the Niles Cone Groundwater Basin is protected. In addition, the amount of water that may be extracted by dewatering should be evaluated and documented. If appropriate, alternative designs should be considered that would minimize the amount of dewatering required during and after construction. Per the Replenishment Assessment Act of the Alameda County Water District (Replenishment Assessment Act), g roundwater losses due to dewatering must be measured and may be subject to a replenishment assessment fee.

Mitigation measures should be proposed to replace all significant losses of ACWD’s water supplies.

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Attachment: Informational 5 - ACWD Comments December 3, 2024 (5337 : Palisade Fremont Boulevard) City of Fremont, Mr. James Willis

December 3rd, 2024

2. Utilities and Service Systems:
a. Existing Public Water Mains: ACWD operates several in-service water mains within and adjacent to the Project site. Project proponents need to coordinate with ACWD ’s Engineering Department regarding the existing 12-inch PVC water main in Ice House Terrace and 12- inch steel and PVC water main in the southern part of the subject Project’s parcel. Any proposed relocation of existing ACWD pipelines, services, or appurtenances within easements will need to be coordinated with the ACWD’s Engineering Department and all costs and fees associated with a relocation will be fully borne by Project proponents.

i. Project proponents may reach out to ACWD Engineering for copies of 200-scale base map and as-built drawings using the ACWD Public Records Act portal, NextRequest, at: https://alamedacountywaterdistrict.nextrequest.com/requests

b. New Public Water System Extension: Any proposed ACWD pipelines within the Project area shall be minimum 12-inch diameter. The provision of water services to the industrial use via a new onsite public water system is conditioned upon the ability to design and install a public water system extension in compliance with the ACWD standards, including the ACWD Standard Specifications for Water Main Installations. The Project’s engineer is strongly encouraged to review these ACWD standards and revise the proposed water system design accordingly. The Project proponents may submit improvement plans to the ACWD Engineering Department for review. The Application for Public Water System Extension can be found on the ACWD website at:
https://www.acwd.org/DocumentCenter/View/33/Application-for-Public-Water-System- Extension?bidId=

i. New public water system extensions shall tie -in to existing water mains and create a well-gridded looped system where feasible and at the sole discretion of the ACWD Engineering Department.

c. Existing Water Services: For modifications of existing water facilities or to initiate new water service to the property, the Project proponent should contact the ACWD Engineering Department.

Any existing water services which will not be used in the new development or water mains to be removed from service must be removed by the ACWD at the Project proponent’s expense. New water service facilities must be installed by ACWD at Project proponent’s expense. Project proponent is encouraged to meet with Engineering staff to review your Project prior to submitting the application or other materials or if you need assistance in completing the Customer Work Request Application . The application and instruction can be found on the ACWD website at:
https://acwd.org/171/Customer-Work-Request-Application.

i. The estimate for processing a customer work request a pplication through the completion of f ield construction is 4- 6 months. The Project proponent should plan accordingly.

d. Existing and New ACWD Easements: There are several existing ACWD water line easements on the Project site and fronting the Project site on other parcels. Project proponents should coordinate with ACWD Engineering Staff to confirm and protect existing ACWD water mains, valves, and other appurtenances. Quitclaim of existing Easements will require reciprocal property rights (i.e., new water line easements) and quitclaim actions are adopted by the ACWD Board of Directors.

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December 3rd, 2024

i. ACWD Water Line Easements: No. 139 (Alameda County Records RE:1589 IM:595), No. 664 (Alameda County Records 89-316598), No. 810 (Alameda County Records 2001-009642), No. 81 4 (Alameda County Records 2001-009646), and No. 815 (Alameda County Records 2001-009647)

ii. New public water system extensions within the Project site will require new water line easement deeds granted to ACWD per the ACWD Development Specifications for Public Water System Extension, Section 2.2.3 Easements. A copy of the Development Specifications can be found on the ACWD website at:
https://www.acwd.org/DocumentCenter/View/272/Development-Specifications-for- Public-Water-System-Extensions-May-2019-Rev-3?bidId=

e. Existing Hazardous Material Contamination: The ability to install a public water system within the Project area would be conditioned upon confirmation that the soil, groundwater, and/or soil gas vapors do not pose a risk to the health and safety of workers either during installation of the public water system or during its long-term routine operation and maintenance.

i. The Project proponents should be prepared to develop a site work plan, and safety plan which describes any steps, including special safety steps, required for pipeline installations by Project proponents and routine ACWD operation and maintenance.

ii. Any proposed public water system extension and all appurtenances must be constructed in "clean corridors," which would be assured by either further testing of native soil, groundwater, and/or soil vapors along the proposed public water system alignments or by use of c lean imported fill as backfill for all trenches excavated for any part of the public water system. The use of upgraded materials, including but not limited to all steel pipelines with upgraded gaskets, may be required.

f. The Project shall be designed to implement water efficient plumbing fixtures and irrigation systems at both residential and non-residential developments, including but not limited to those listed in the Water Efficiency Measures for New Development, located on the District’s website (http://acwd.org/DocumentCenter/View/421).

3. ACWD Contacts:

The following ACWD contacts are provided so that the City of Newark staff can coordinate with ACWD as needed during the Project:

 Michelle Walden, Groundwater Resources Manager, at (510) 668 -4454 or by email at [email protected], for coordination regarding ACWD’s groundwater resources.

 Kit Soo, Well Ordinance Supervisor, at (510) 668- 4455 or by email at [email protected] , for coordination regarding groundwater wells and drilling permits.

 Sean O’Reilly, Development Services Manager, at (510) 668- 4472 or by email at [email protected], for coordination regarding public water systems, GIS, and water service modifications.

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Attachment: Informational 5 - ACWD Comments December 3, 2024 (5337 : Palisade Fremont Boulevard) City of Fremont, Mr. James Willis

December 3rd, 2024

Thank you again for the opportunity to comment on the Notice of Intent to Adopt a Negative Declaration for the Palisade Fremont Blvd GPA Project.

Sincerely,

Girum Awoke
Director of Engineering and Technology

sro/ml

cc: Laura Hidas, ACWD
Michelle Walden, ACWD
Kit Soo, ACWD
Sean O’Reilly, ACWD

~

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Attachment: Informational 5 - ACWD Comments December 3, 2024 (5337 : Palisade Fremont Boulevard)

CARLSBAD
CLOVIS
IRVINE

PALM SPRINGS

POINT RICHMOND

RIVERSIDE

ROSEVILLE

SAN LUIS OBISPO
1504 Eureka Rd, Suite 310, Roseville, California 95661 916.772.7450 www.lsa.net

MEMORANDUM
DATE: December 5, 2024
TO: James Willis, City of Fremont
FROM: Kat Hughes, Project Manager
SUBJECT: Response to Alameda County Water District Comment Letter on the Draft Initial Study/Negative Declaration for the Palisade Fremont Boulevard Project

The City of Fremont circulated the Draft Initial Study/Negative Declaration (IS/ND) for the Palisade Fremont Boulevard Project (project) for public comments from November 13, 2024, to December 3, 2024. The City received one comment letter, from the Alameda County Water District (ACWD), dated December 3, 2024, included as Attachment A. This memorandum documents the comments made by ACWD, comment responses, and any changes or corrections made to the IS/ND in response to ACWD comments.

The ACWD Comment Letter, found in Attachment A, has been delimited to show individual comments, and each comment has been assigned a number. Responses and any text revisions are organized below by comment number. Added text is indicated in bold, and removed text is indicated with strike-through.

COMMENT RESPONSES
COMMENT A-1
The comment requests that the IS/ND note the cooperative agreements with the Regional Water Quality Control Board – San Francisco Bay Region and the City of Fremont made as part of the ACWD’s Groundwater Protection Program, and requests that project proponents notify ACWD if any soil and/or groundwater is encountered.

Response A-1
The text of page 4-52, Section 4.9.2(a), of the IS/ND has been revised to include the following:

As part of Alameda County Water District’s (ACWD) Groundwater Protection Program, ACWD has entered into Cooperative Agreements with both the California Regional Water Quality Control

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2 Board – San Francisco Bay Region1 and the City of Fremont,2 which allows ACWD to provide technical oversight for the investigation and remediation at LUST sites and sites where the pollution is attributed to spills or leaks from structures other than underground fuel tanks, now referred to as Site Cleanup Program sites or SCP (formerly known as Spills, Leaks, Investigation, and Cleanup sites or SLIC sites). As a result, ACWD must be notified if any soil and/or groundwater contamination is encountered during implementation of the proposed project.

Likewise, lists of hazardous materials regulations and programs have been revised to include “ACWD SCP investigation/remediation procedures” throughout the document.

COMMENT A-2
The comment notes that a Phase II Soil and Groundwater Investigation was conducted in the vicinity of the project site which was not evaluated as part of the Draft IS/ND or appended Phase I ESA. The comment notes that this Phase II Report indicates that relatively low concentrations of petroleum hydrocarbons (as diesel and motor oil) are present in soil and shallow groundwater at an adjacent site, and requests that this data be considered during development of the soil management plan (SMP) to be developed for the project.

Response A-2
The Phase II Soil and Groundwater Investigation report, dated June 2, 2000, prepared by URS/Dames & Moore, is not for the project site; the report was prepared to investigate the property located at 43962 Fremont Boulevard, adjacent to and not a part of the currently proposed project site. Per the preparers of the Phase I ESA prepared for the proposed project, it was not necessary to evaluate the URS/Dames & Moore Phase II Report as part of the preparation of the Draft IS/ND or the Phase I ESA. However, the report can be evaluated during preparation of the soil management plan (SMP), which will be undertaken in compliance with FMC 18.218.050(f).

In addition, to clarify details regarding the relatively low concentrations of petroleum hydrocarbons as diesel and motor oil, the following text was added to page 4-47, Section 4.9.1, of the IS/ND:

According to the Phase I ESA, two previous reports were prepared for the project site and were on file with the City of Fremont Fire Department:
• P
hase I Environmental Site Assessment, 43990, 43962, and 43978 Fremont Boulevard and 3842 A
utomall Parkway, Fremont, CA, prepared by Niland Consultants for Western Precooling Systems, and dated July 20, 1998 (1998 Niland ESA)
1 ACWD. 1996 (updated 2013). Cooperative Agreement between San Francisco Bay Regional Water Quality Control Board and Alameda County Water District, dated June 27, 1996, updated May 28, 2013. Website:
https://www.acwd.org/DocumentCenter/View/132. Accessed December, 2024. 2 ACWD. 1997. Cooperative Agreement between City of Fremont and Alameda County Water District (Agreement 2880), dated March 25, 1997. Website: https://www.acwd.org/DocumentCenter/View/128.

Accessed December, 2024.

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3 • Phase II Investigation Report, 43990, 43962, and 43978 Fremont Boulevard and 3842 Automall Parkway, Fremont, CA, prepared by Geomatrix for Western Precooling Systems, and dated July 20, 1998 (1998 Geomatrix Phase II)
The 1998 Niland ESA was prepared for an approximately 12-acre property that included the current project site as well as the north, northeast, and east adjoining properties (43990, 43962, and 43978 Fremont Boulevard and 3842 Automall Parkway). The 1998 Niland ESA discussed a 1,000-gallon UST previously located on the proposed project site, which was removed in 1987. A LUST case was subsequently opened due to soil and groundwater impacts identified with the tank excavation. The LUST case for the on-site UST was granted unrestricted closure in 1989 following over-excavation of soil and four rounds of groundwater monitoring, with no elevated contaminants identified. Also identified in the 1998 Niland ESA were a former asphalt tar AST and a former waste oil drum storage area. A subsurface investigation of these two areas was included in the 1998 Geomatrix Phase II, and no evidence of release or elevated contamination was identified.
1 According to the 1998 Geomatrix Phase II, total petroleum hydrocarbons (TPH) as diesel was detected in most soil and groundwater samples throughout the properties, though VOCs and semi-VOCs were not detected in any samples. Only one soil sample location, labeled S10, is located within the proposed project site as part of the 1998 Geomatrix Phase II, and none of the groundwater or surface water samples taken were from within the currently proposed project site. Because TPH as diesel was detected in soil across the four properties under investigation, the 1998 Geomatrix Phase II recommended that prior to any site construction/development, appropriate disposal facilities should be identified for receipt of any soil export containing diesel that might be generated during excavation and grading activities.2 Additionally, the following text has been added to page 4-49, Section 4.9.1, of the IS/ND:
2000 URS Phase II Soil and Groundwater Investigation. As part of the development of the adjacent site to the east of the proposed project site, at 43962 Fremont Boulevard, a Phase II Soil and Groundwater Investigation (2000 URS Phase II) was prepared dated June 2, 2000. For this investigation, samples of soil and groundwater were taken at six geoprobe boring locations. Three of the sample locations, DMB-3, DMB-4, and DMB-5, were located at the western edge of the property at 43962 Fremont Boulevard, adjacent to the current project site. TPH as diesel and TPH as motor oil were identified in the soil and groundwater samples. The 2000 URS Phase II concluded that “relatively low concentrations” of TPH as diesel and as motor oil were present in the soil and groundwater, indicating that there were no significant sources of diesel and/or motor oil at the 43962 Fremont Boulevard property. Further, the 2000 URS Phase II noted that ACWD had not established County-wide clean up levels for diesel and motor oil in soil and groundwater,

1 Blackstone Consulting, LLC. 2021. Phase I Environmental Site Assessment, Ice House Terrace 43990 Fremont Boulevard, Fremont, Alameda County, California 94538. September 14. 2 Geomatrix. 1998. Phase II Investigation Report, 43990, 43962, and 43978 Fremont Boulevard and 3842 Automall Parkway, Fremont, CA. July 20.

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4 and the report indicated that ACWD was not likely to require remedial action for the relatively low concentrations of TPH as diesel and TPH as motor oil that had been detected. 1 COMMENT A-3
The comment notes that Section 4.10.1(b) does not include mention of ACWD’s groundwater management activities and requests that this be included.

Response A-3
ACWD’s groundwater management is discussed under 4.10.1(e). Part of this discussion has been moved to 4.10.1(b) in response to this comment. Page 4-62, Section 4.10.1(b), of the IS/ND now includes the following text:

The Sustainable Groundwater Management Act (SGMA), which was enacted in September 2014, requires governments and water agencies of high- and medium-priority basins to halt overdraft of groundwater basins. The SGMA requires the formation of local Groundwater Sustainability Agencies (GSAs), which are required to adopt Groundwater Sustainability Plans to manage the sustainability of the groundwater basins; ACWD is the GSA identified for the Santa Clara basin.

COMMENT A-4
The comment requests that the IS/ND include information regarding the ACWD’s role as SGMA groundwater management and compliance agency.

Response A-4
The IS/ND text already includes this information. The text of page 4-67, Section 4.10.1(e), of the IS/ND has been revised as follows, for clarity in response to this comment:

The SGMA requires the formation of local Groundwater Sustainability Agencies (GSAs), which are required to adopt Groundwater Sustainability Plans to manage the sustainability of the groundwater basins; ACWD is the GSA identified for the Santa Clara basin. The California Department of Water Resources (DWR) designates the Niles Cone Subbasin as a medium-priority basin, and the GSA identified for the Santa Clara subbasin is ACWD. The SGMA requires the formation of local Groundwater Sustainability Agencies (GSAs), which are required to adopt Groundwater Sustainability Plans to manage the sustainability of the groundwater basins; ACWD is the GSA identified for the Santa Clara basin.

COMMENT A-5
The comment requests that the reference in the IS/ND to the Alternative Update to the California Department of Water Resources (DWR) be updated to reflect its approval by DWR on June 27, 2024.

1 URS Corporation. 2000. Phase II Soil and Groundwater Investigation, 43962 Fremont Boulevard, Fremont, CA. June 2.

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5 Response A-5
The text of page 4-67, Section 4.10.1(e), of the IS/ND was revised to update this reference, as follows:

ACWD subsequently submitted an Alternative Update to DWR on December 29, 2021, which was approved June 27, 2024. The Alternative Update provides an update on ACWD’s groundwater management efforts…
COMMENT A-6
This comment notes that text on page 4-68, Section 4.10.1(e), of the Draft IS/ND, may imply that ACWD would take action to offset deficiencies caused by project dewatering. Refers to further comment found under Comment A-12.

Response A-6
Comment noted and response found in Response A-12.

COMMENT A-7
This comment requests correction of a typo in the full title of the Urban Water Management Plan.

Response A-7
References to the UWMP have been corrected throughout the document.

COMMENT A-8
This comment notes that drilling permits are required from ACWD prior to the start of any subsurface drilling activities for wells, exploratory holes, and other excavations including the installation of support piers, piles (sheet piles), or caissons within the City of Fremont.

Response A-8
Comment noted.

COMMENT A-9
This comment identifies a monitoring well that may be located within the project site, but notes that the location could not be field verified during two field visits. Comment notes that if the well is encountered during development of the proposed project, the project proponents must notify ACWD, and the well must be either protected and brought into compliance with ACWD Ordinance Number 2010-01 or properly destroyed.

Response A-9
Comment is noted. If the well is located during grading activities, the well will be destroyed in accordance with ACWD requirements.

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6 COMMENT A-10
This comment notes the inclusion of bioretention treatment areas.

Response A-10
Comment noted.

COMMENT A-11
This comment notes potential groundwater contamination and requests that a provision be included in the IS/ND requiring project proponents to coordinate any drainage design and stormwater treatment measure implementation with ACWD, prior to implementation and City approval.

Response A-11
Comment is noted. The project proponent previously obtained ACWD approval of the current stormwater design during the Engineering review phase. Another review prior to building permit issuance could be included as a condition of approval for the project.

COMMENT A-12
This comment requests that any water extracted by dewatering be evaluated and documented. The comment also requests that, if appropriate, alternative designs be considered to minimize the amount of dewatering required during and after construction. The comment also notes that, per ACWD’s Replenishment Assessment Act, groundwater losses due to dewatering must be measured and may be subject to a replenishment assessment fee. The comment suggests that mitigation measures be proposed to replace all significant losses of ACWD’s water supplies.

Response A-12
No significant de-watering is anticipated to occur. If dewatering does occur, it would be short-term de-watering during installation of deep utilities. Any water pumped from these trenches would be allowed to re-infiltrate within a shallower section of the trench, and therefore no groundwater loss would occur, as stated on page 4-60, Section 4.10.1(a) of the IS/ND.

COMMENT A-13
This comment requests coordination with ACWD’s Engineering Department regarding existing water mains in Ice House Terrace and within the project site. The comment notes that any relocations must be coordinated with ACWD Engineering and costs and fees are the responsibility of the project proponent.

Response A-13
Comment noted.

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7 COMMENT A-14
This comment provides a link to the ACWD Public Records Act portal for any base maps and as-built drawings that might be needed for utility designs.

Response A-14
Comment noted.

COMMENT A-15
This comment states that any proposed ACWD pipelines within the project site must be a minimum of 12-inches diameter, and must be compliant with ACWD standards, including ACWD Standard Specifications for Water Main Installations. The comment provides a link for applications for public water system extensions to be made to ACWD, and notes that extension tie-ins to existing water mains are at the discretion of ACWD Engineering.

Response A-15
Comment noted.

COMMENT A-16
The comment notes that modified existing water facilities, or initiation of new water service must be coordinated with ACWD Engineering. Unused existing water services must be removed by ACWD and new water service must be installed by ACWD; removal and installation are at project proponent’s expense. The comment invites the project proponent to meet with ACWD Engineering staff ahead of applying for service, provides a link for the application, and notes that work request applications can take 4 to 6 months.

Response A-16
Comment noted.

COMMENT A-17
The comment notes existing ACWD water line easements within the project site and in the vicinity.

The comment requests that project proponent coordinate with ACWD Engineering staff to confirm and protect any existing ACWD water mains, valves, or other facilities, and notes that quitclaim actions require reciprocal property rights and approval by ACWD Board of Directors. Comment notes the ACWD Easement numbers within and near the project site.

Response A-17
Comment noted.

COMMENT A-18
Comment notes that new public water system extensions within the project site will require new easement deeds per ACWD requirements, a copy of which is provided via link.

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8 Response A-18
Comment noted.

COMMENT A-19
This comment notes that installation of a new public water system at the project site requires confirmation that the soil, groundwater, and/or soil gas vapors do not pose a risk to the health and safety of workers either during installation of the public water system or during its long-term routine operation and maintenance.

Response A-19
Comment noted.

COMMENT A-20
The comment requests that project proponents develop a site work plan and a safety plan that describes any steps, including special safety steps, required for pipeline installations by project proponents and routine ACWD operation and maintenance.

Response A-20
The Phase I ESA prepared for the proposed project did not indicate any soil impacts affecting the site, but out of an abundance of caution and in accordance with FMC 18.218.050(f), the applicant will prepare an SMP that includes a Health and Safety Plan (HASP).

COMMENT A-21
The comment notes that any proposed public water system extension and appurtenances must be constructed in "clean corridors," which should be assured by further testing of native soil, groundwater, and/or soil vapors along the proposed public water system alignments, or by use of clean imported fill as backfill for all trenches excavated for any part of the public water system. The comment also notes that the use of upgraded materials, including but not limited to all steel pipelines with upgraded gaskets, may be required.

Response A-21
Comment noted. The project proponent will create a clean corridor for the installation of the public water system either through testing or backfill with clean soil.

COMMENT A-22
The comment notes that the project would be required to implement water efficient plumbing and irrigation, and provides a link to measures.

Response A-22
Comment noted.

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9 Attachment: Delimited Comment Letter from ACWD, dated December 3, 2024.

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BOARD MEMBERS 43885 SOUTH GRIMMER BOULEVARD • FREMONT, CALIFORNIA 94538 (510) 668-4200 • www.acwd.org

MANAGEMENT

AZIZ AKBARI
JAMES G. GUNTHER
JUDY C. HUANG

PAUL SETHY
JOHN H. WEED

ED STEVENSON
General Manager

DAN STEVENSON
Operations and Maintenance

GIRUM AWOKE
Engineering and Technology
LAURA J. HIDAS
Water Resources

JONATHAN WUNDERLICH
Finance and Administration

JACKIE MCCLOUD
Special Assistant to the General Manager

December 3, 2024

VIA ELECTRONIC MAIL
James Willis, Senior Planner ([email protected])
City of Fremont
39550 Liberty Street
Fremont CA 94537

Dear Mr. Willis:

Subject: Notice of Public Review and Intent to Adopt a Negative Declaration for the Palisade Fremont Blvd GPA (PLN2024-00080) project located at Fremont Boulevard and Ice House Terrace, Fremont, CA 94538

The Alameda County Water District (ACWD) wishes to thank you for the opportunity to comment on the Draft Initial Study/Negative Declaration (IS/ND) for the Palisade Fremont Boulevard Project (“Project,” or “Development”). ACWD has reviewed the Draft IS/ND and would appreciate your consideration of the following comments:

1. Groundwater:
a. Hazards and Hazardous Materials : Appendix E of the Draft IS/ND provides a Phase I Environmental Site Assessment (ESA) to evaluate the Project area and adjacent areas for potential environmental conditions, including impacts and risks. The Phase I ESA identified two (2) properties/listings determined to present a higher potential risk for environmental concerns to the Project site, including a former Leaking Underground Storage Tank (LUST) site, Wicks Pacific Supply Lumber.
i. The Draft IS/ND should acknowledge that as part of ACWD’s Groundwater Protection Program, ACWD entered into Cooperative Agreements with both the California Regional Water Quality Control Board – San Francisco Bay Region (Regional Board) and the City of Fremont (City), which allows ACWD to provide technical oversight for the investigation and remediation at LUST sites and sites where the pollution is attributed to spills or leaks from structures other than underground fuel tanks now referred to as Site Clean up Program sites or SCP (formerly known as Spills, Leaks, Investigation, and Cleanup sites or SLIC sites). These Cooperative Agreements further strengthen the interagency coordination and cost -effective implementation of groundwater protection within the City in order to protect the Niles Cone Groundwater Basin. As a result, ACWD requests that Project proponents notify ACWD if any soil and/or groundwater contamination is encountered.
/ITCWD
HfHHEDH CDUIVTY WHTEH o,sra,cr
A-1

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ii. Accor
ding to records held by ACWD, a Phase II Soil and Groundwater Investigation was conducted at a property in the vicinity of the Project site which does not appear to have been evaluated as part of the Draft IS/ND or appended Phase I ESA. The Report for the Phase II Soil and Groundwater Investigation (Phase II Report) is dated June 2, 2000, and was conducted by URS/Dames & Moore at 43962 Fremont Boulevard; however, site vicinity maps provided as part of the Phase II Report suggest the investigated area i s coincident with the proposed Project area. The results from the Phase II Soil and Groundwater Investigation indicate that relatively low concentrations of petroleum hydrocarbons (as diesel and motor oil) are present in soil from 1 to 6 feet below ground surface (bgs) and in shallow groundwater. The data provided in the Phase II Report should be considered during development of the forthcoming soil management plan (SMP) to be developed for the Project area. b. Hydrology and Water Quality:
iii. The impact analysis provided for item (b ) of Section 4.10.1 of the Draft IS/ND discusses the groundwater setting in the Project area and notes that the Project site is located within the Niles Cone Groundwater Basin (Niles Cone Subbasin 2- 09.01 or Niles Cone). This discussion does not include mention of ACWD’s groundwater management activities in particular. For over 100 years, ACWD has managed the groundwater of the Niles Cone through comprehensive programs that protect and improve water supplies for all groundwater users. ACWD requests that this additional information be provided in the IS/ND.
iv. The impact analysis provided for item (e) of Section 4.10.1 of the Draft IS/ND evaluates whether the Project would conflict with or obstruct implementation of the Sustainable Groundwater Management Act (SGMA).
a. ACWD is identified within SGMA as an agency created by statute to manage groundwater and deemed to be the exclusive local agency within its statutory boundaries to comply with SGMA. ACWD requests that this additional information be provided in the IS/ND.
b. Pages 4-67 and 4-68 of the Draft IS/ND specify that ACWD submitted an Alternative Update to the California Department of Water Resources (DWR) on December 29, 2021. Please note that the Alternative Update was approved by DWR on June 27, 2024.
c. Page 4 -68 of the Draft IS/ND states, “Operation of the proposed project would likely involve the use of both surface and groundwater as potable water. However, ACWD has sufficient water supplies to meet normal- year demands through 2045. If a deficiency were to occur, ACWD would take actions to attempt to maintain appropriate groundwater levels, including:
maximizing the import of additional water for artificial recharge of the groundwater basin; reducing use of local groundwater; and maximizing use of imported supplies .” This excerpt may imply that ACWD would take actions to offset deficiencies caused by the Project dewatering . Please see comment 1.e below.

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December 3rd, 2024

d. Page 4-63 of the Draft IS/ND cite s the “ The 2020-2050 Urban Water Management Plan (UWMP) …,” however, it is the “2020-2025” UWMP.

ACWD requests the title of the referenced UWMP be corrected on this page and in occurrences throughout the document.

c. Groundwater Well Protection/Destruction:
i. Groundwater Well Destruction and Drilling Permits: As required by ACWD Ordinance No. 2010- 01, drilling permits are required prior to the start of any subsurface drilling activities for wells, exploratory holes, and other excavations including the installa tion of support piers, piles (sheet piles), or caissons within the City of Fremont (City). Application for a permit may be obtained from ACWD’s Engineering Department, at 43885 South Grimmer Boulevard, Fremont or online at http://www.acwd.org. All permitted work requires scheduling for inspection; therefore, all drilling activities must be coordinated with ACWD prior to the start of any field work.

ii. ACWD has identified a monitoring well 5S/1W-11M004 located within the Project area. However, the well could not be field verified during two occasions (specifically on May 7, 2024, and July 31, 2024), which were performed by project proponents to look for and verify the well. To protect the groundwater basin, if t his well is located during development activities within the project area , it must be in compliance with ACWD Ordinance No. 2010-01. Project proponents must notify ACWD, and the well must be either protected and brought into compliance with ACWD Ordinance No 2010-01 or properly destroyed. If the well is to remain, a letter indicating so must be sent to ACWD.

d. Stormwater Management: Section 2.2.6.3 of the Draft IS/ND indicates that stormwater on the Project site would be directed to bioretention areas, which “would collect and treat stormwater before discharging into existing City storm drain lines.” ACWD appreciates the biotreatmen t of stormwater in bioretention areas in order to impede runoff from rapidly infiltrating the subsurface and bypassing soils which have the capacity to remove pollutants and protect the groundwater supply.

As previously discussed, the Project site has known groundwater contamination and specific stormwater devices could present an unacceptable long-term risk to beneficial uses of groundwater.

Therefore, ACWD requests the IS/ND include a provision that requires Project proponents coordinate any drainage design and stormwater treatment measure implementation with ACWD, prior to implementation and City approval.

e. Dewatering: The Draft IS/ND indicates that dewatering and shoring of groundwater may be required during construction activities involving excavation. ACWD requests that Project proponents coordinate the design to ensure the Niles Cone Groundwater Basin is protected. In addition, the amount of water that may be extracted by dewatering should be evaluated and documented. If appropriate, alternative designs should be considered that would minimize the amount of dewatering required during and after construction. Per the Replenishment Assessment Act of the Alameda County Water District (Replenishment Assessment Act), g roundwater losses due to dewatering must be measured and may be subject to a replenishment assessment fee.

Mitigation measures should be proposed to replace all significant losses of ACWD’s water supplies.

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2. Utilities and Service Systems:
a. Existing Public Water Mains: ACWD operates several in-service water mains within and adjacent to the Project site. Project proponents need to coordinate with ACWD ’s Engineering Department regarding the existing 12-inch PVC water main in Ice House Terrace and 12- inch steel and PVC water main in the southern part of the subject Project’s parcel. Any proposed relocation of existing ACWD pipelines, services, or appurtenances within easements will need to be coordinated with the ACWD’s Engineering Department and all costs and fees associated with a relocation will be fully borne by Project proponents.

i. Project proponents may reach out to ACWD Engineering for copies of 200-scale base map and as-built drawings using the ACWD Public Records Act portal, NextRequest, at: https://alamedacountywaterdistrict.nextrequest.com/requests

b. New Public Water System Extension: Any proposed ACWD pipelines within the Project area shall be minimum 12-inch diameter. The provision of water services to the industrial use via a new onsite public water system is conditioned upon the ability to design and install a public water system extension in compliance with the ACWD standards, including the ACWD Standard Specifications for Water Main Installations. The Project’s engineer is strongly encouraged to review these ACWD standards and revise the proposed water system design accordingly. The Project proponents may submit improvement plans to the ACWD Engineering Department for review. The Application for Public Water System Extension can be found on the ACWD website at:
https://www.acwd.org/DocumentCenter/View/33/Application-for-Public-Water-System- Extension?bidId=

i. New public water system extensions shall tie -in to existing water mains and create a well-gridded looped system where feasible and at the sole discretion of the ACWD Engineering Department.

c. Existing Water Services: For modifications of existing water facilities or to initiate new water service to the property, the Project proponent should contact the ACWD Engineering Department.

Any existing water services which will not be used in the new development or water mains to be removed from service must be removed by the ACWD at the Project proponent’s expense. New water service facilities must be installed by ACWD at Project proponent’s expense. Project proponent is encouraged to meet with Engineering staff to review your Project prior to submitting the application or other materials or if you need assistance in completing the Customer Work Request Application . The application and instruction can be found on the ACWD website at:
https://acwd.org/171/Customer-Work-Request-Application.

i. The estimate for processing a customer work request a pplication through the completion of f ield construction is 4- 6 months. The Project proponent should plan accordingly.

d. Existing and New ACWD Easements: There are several existing ACWD water line easements on the Project site and fronting the Project site on other parcels. Project proponents should coordinate with ACWD Engineering Staff to confirm and protect existing ACWD water mains, valves, and other appurtenances. Quitclaim of existing Easements will require reciprocal property rights (i.e., new water line easements) and quitclaim actions are adopted by the ACWD Board of Directors.

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December 3rd, 2024

i. ACWD Water Line Easements: No. 139 (Alameda County Records RE:1589 IM:595), No. 664 (Alameda County Records 89-316598), No. 810 (Alameda County Records 2001-009642), No. 81 4 (Alameda County Records 2001-009646), and No. 815 (Alameda County Records 2001-009647)

ii. New public water system extensions within the Project site will require new water line easement deeds granted to ACWD per the ACWD Development Specifications for Public Water System Extension, Section 2.2.3 Easements. A copy of the Development Specifications can be found on the ACWD website at:
https://www.acwd.org/DocumentCenter/View/272/Development-Specifications-for- Public-Water-System-Extensions-May-2019-Rev-3?bidId=

e. Existing Hazardous Material Contamination: The ability to install a public water system within the Project area would be conditioned upon confirmation that the soil, groundwater, and/or soil gas vapors do not pose a risk to the health and safety of workers either during installation of the public water system or during its long-term routine operation and maintenance.

i. The Project proponents should be prepared to develop a site work plan, and safety plan which describes any steps, including special safety steps, required for pipeline installations by Project proponents and routine ACWD operation and maintenance.

ii. Any proposed public water system extension and all appurtenances must be constructed in "clean corridors," which would be assured by either further testing of native soil, groundwater, and/or soil vapors along the proposed public water system alignments or by use of c lean imported fill as backfill for all trenches excavated for any part of the public water system. The use of upgraded materials, including but not limited to all steel pipelines with upgraded gaskets, may be required.

f. The Project shall be designed to implement water efficient plumbing fixtures and irrigation systems at both residential and non-residential developments, including but not limited to those listed in the Water Efficiency Measures for New Development, located on the District’s website (http://acwd.org/DocumentCenter/View/421).

3. ACWD Contacts:

The following ACWD contacts are provided so that the City of Newark staff can coordinate with ACWD as needed during the Project:

 Michelle Walden, Groundwater Resources Manager, at (510) 668 -4454 or by email at [email protected], for coordination regarding ACWD’s groundwater resources.

 Kit Soo, Well Ordinance Supervisor, at (510) 668- 4455 or by email at [email protected] , for coordination regarding groundwater wells and drilling permits.

 Sean O’Reilly, Development Services Manager, at (510) 668- 4472 or by email at [email protected], for coordination regarding public water systems, GIS, and water service modifications.

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December 3rd, 2024

Thank you again for the opportunity to comment on the Notice of Intent to Adopt a Negative Declaration for the Palisade Fremont Blvd GPA Project.

Sincerely,

Girum Awoke
Director of Engineering and Technology

sro/ml

cc: Laura Hidas, ACWD
Michelle Walden, ACWD
Kit Soo, ACWD
Sean O’Reilly, ACWD

~

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Attachment: Informational 6 - Palisade Fremont Blvd IS-ND RTC Errata Memo 12.5.24 (5337 : Palisade Fremont Boulevard) Planning Commission
December 12, 2024

Proposal: PALISADE FREMONT BOULEVARD - Fremont Boulevard & Ice House Terrace - PLN2024-00080 - To consider a proposed
General Plan Amendment from Regional Commercial to Tech Industrial, corresponding rezoning from Commercial – Regional (C-R) to Tech Industrial (I-T), Discretionary Design Review, Lot Line Adjustment, and Summary Vacation of public utility easements to facilitate the development of an approximately 70,000-square-foot industrial building; and to consider a Draft Negative Declaration prepared a nd circulated for the project in accordance with the requirements of the California
Environmental Quality Act (CEQA).

Recommendation: Recommend approval to the City Council
Location: Fremont Boulevard and Ice House Terrace (southeast corner) APNs 525-1390-9 & 525-1390-10

Area: 4.2 Acres (181,487 square feet)

People: William Jacobs, North Palisade Partners - Applicant

HPA Architects – Architect

Andrew Meckler, Kier Wright Civil Engineers – Engineer

James Willis, Staff Planner, 510-494-4449, [email protected]

General Plan: Existing: Regional Commercial
Proposed: Tech Industrial

Zoning: Existing: Regional Commercial
Proposed: Tech Industrial

EXECUTIVE SUMMARY
The applicant proposes to redevelop the 4.2 -acre site with an approximately new 70,000- square-foot industrial building. To facilitate the project, a General Plan Amendment to redesignate the land use of the site from Regional Commercial to Tech Industrial, a corresponding Rezoning from R egional Commercial (C -R) to Tech Industrial (I -T), a

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Discretionary Design Review, and other land entitlement approvals have been requested.

Staff recommends that the Planning Commission recommend approval of the project to the City Council , including adoption of the proposed Negative Declaration for the project as shown in Exhibit “A,” approval of the General Plan Amendment as shown in Exhibit “B,” the Rezoning as shown in Exhibit “C,” and the project plans as shown in Exhibit “D,” based on the findings and subject to the conditions of approval contained in Exhibit “E.”

BACKGROUND AND PREVIOUS ACTIONS
The project site was formerly the home of Western Precooling, a company which provided services to agricultural uses in the area. The portion of the site tha t is vacant contained a warehouse building while the building along Fremont Boulevard contained the business offices. The private street, Ice House Terrace, was created in 1999 as part of the development of the adjacent commercial center containing a Home Depot store. The project site has been vacant for years. The Western Precooling warehouse building was torn down in the 1990s and the business office has been vacant since at least 2022.

The site was previously General Industrial but was redesignated and rezoned as part of the current General Plan adoption and conforming rezonings in 2011 and 2015, respectively, to Regional Commercial , though the site has remained vacant. In 20 18, a proposal for a General Plan Amendment Screening to medium density resident ial (PLN2018-00118) was denied, and this is the first land use proposal submitted for the site since then.

The existing structure would be removed, and the site cleared to accommodate the project.

PROCEDURE FOR TONIGHT’S HEARING
At tonight’s hearing, the Planning Commission is charged with making a recommendation to the City Council regarding the following:

1. Adoption of a Negative Declaration (Neg Dec), prepared and circulated in accordance with CEQA guidelines and as drafted in Exhibit “A;”

2. Adoption o f a resolution to amend the General Plan land use designation of the property from Regional Commercial to Tech Industrial, as shown in Exhibit “B,” based on the project’s conformance to the findings prescribed by FMC Section

18.225.050;

3. Adoption of an ord inance to rezone the subject property from Regional Commercial (C-R) to Tech Industrial (I -T), as shown in Exhibit “C” based on the project’s conformance to the findings prescribed by Fremont Municipal Code (FMC) Section

18.225.050; and

PROJECT DESCRIPTION
The applicant is proposing a General Plan Amendment, Rezoning, Discretionary Design Review, Lot Line Adjustment, and Summary Vacation of utility easements to facilitate

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construction of a new approximately 70,000 -square-foot spec industrial building on a 4.2- acre site at the corner of Fremont Boulevard and Ice House Terrace. The easement vacation and lot line adjustment would be conditioned for further action by the appropriate approval authorities if the rest of the project is approved. The proposed General Plan Amendment to Tech Industrial would revert the project site back to the current land use designation most similar to its previous industrial land use designation of “restricted industrial .” Its current Regional Commercial designation was establishe d in 1999 when the nearby Home Depot and other commercial buildings along Hugo Terrace were developed. The corresponding Rezoning request to Tech Industrial would effectuate development of the proposed project, which would be governed by the land use and d evelopment standards of the Tech Industrial (I-T) zoning district (FMC 18.50). The project would necessitate removal of an existing lot line and relocat ion of an existing public utility easement in a manner that would allow development of the proposed industrial building and its associated site improvements.

The site’s vacant building would be demolished and the site would be cleared to accommodate the new building , the site plan for which would include 107 vehicle parking stalls, 6 motorcycle stalls, shor t-term parking for 26 bicycles and long -term parking for 8 bicycles and associated circulation, landscaping, and stormwater treatment areas. The project’s industrial building would be designed to accommodate uses allowed in the Tech Industrial zone. The project’s building would be located at the center of the site with parking along the interior lot lines and a portion of Ice House Terrace away from Fremont Boulevard. The development would take access from a single driveway on Fremont boulevard and Ice Hous e Terrace respectively. An existing joint access with the former REI property next door would remain.

PROJECT ANALYSIS
General Plan Conformance
The subject property is currently designated Regional Commercial . To enable industrial development at the site , the applicant is proposing a General Plan Amendment to change the land use designation to Tech Industrial, which permits research and development, “clean and green” tech, and semi -conductor, computer hardware, software and related technological, administ rative, sales, and engineering facilities, as well as warehouse and distribution, e -commerce fulfillment, and manufacturing facilities . Staff supports the proposed General Plan Amendment because the proposal would be consistent with the following General Plan goals and policies:

Land Use Policy 2 -1.11: Infill Emphasis – Focus new development on underutilized or “skipped over” sites that are already served by infrastructure and public streets. Strongly discourage, and where appropriate prohibit, the convers ion of open space or underdeveloped land on the fringes of Fremont to urban uses.

Land Use Goal 2-2.1: Opportunity Areas for Growth and Change – Guide new growth and development to specific areas… include(ing) commercially and industrially zoned lands in the city with the potential to create job and housing opportunities while contributing to the city’s evolution into a more sustainable and pedestrian-oriented city.

Land Use Policy 2-3.6: Conversion of Older Shopping Centers and Commercial Uses – Support the adaptive reuse, renovation, or redevelopment of older shopping centers or commercial uses that are no longer viable due to changing market conditions,

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demographics, or retail trends.

Land Use Policy 2 -5.1: Land Supply and Job Growth – Maintain an ind ustrial land supply that is adequate and suitable for the continued growth of the City’s core industries, including computer and communications manufacturing, biotechnology, green technology, logistics/distribution, and emerging technologies. The City shou ld capitalize on its proximity to Silicon Valley, regional transportation facilities, and educated and skilled work force to create opportunities for job growth.

Analysis: The proposed project would redevelop a currently vacant site with an abandoned building and is adjacent to a commercial shopping center. No activity has occurred on the site since at least 2022. Much of the site is undeveloped while a small office building fronts Fremont Boulevard with boarded windows and doors. The proposed development would be a new industrial building which would be compatible with the other industrial users along this portion of Fremont Boulevard , including Glacier Ice located across Ice House Terrace from the project site within the immediate vicinity . This would be achieved through quality site design and appropriate building scale . Conversion to the Tech Industrial designation and implementation of the proposed project would facilitate a significant investment in an underutilized developed in-fill site that would result in a more productive and efficient use of the land than current conditions allow, and create job growth in the City’s growing industrial sector and revenue sources for the City.

Mobility Goal 3 -1: Complete Streets – City streets that serve multiple m odes of transportation while enhancing Fremont’s appearance and character.

Mobility Goal 3 -4.4: Mitigating Development Impacts – Require new development to mitigate its impacts on mobility conditions through traffic impact fees, street and intersection im provements, transportation demand management programs, and other measures.

Mobility Goal 3 -6.6: Trucking and Land Use Compatibility – Generally discourage the location of businesses generating large amounts of truck traffic in areas where residential streets or land uses would be negatively impacted. In mixed use areas where businesses and residences are in close proximity, ingress and egress for truck traffic should be designed to minimize the potential for impacts on residences and neighborhood streets. The site plan review process should be used to ensure that businesses are designed to minimize the impact of truck traffic and delivery vehicles on through -traffic. Loading docks and delivery/service areas should be sited to the rear of buildings to minimi ze traffic disruption and maintain the visual quality of public streets.

Analysis: Development of the proposed project would include a roadway dedication on Fremont Boulevard to allow for improved pedestrian and bicycle facilities. The proposed project would be subject to development impact fees , including traffic impact fees, for the new building. The site is located within an industrial neighborhood on Fremont Boulevard south of Auto Mall Parkway. The nearest active use to the proposed project site is th e Glacier Ice manufacturing facility across Ice House Terrace from the site. This facility is served by numerous trucks , as is the Home Depot within the adjacent commercial development. The proposed design would place the loading docks far from the commerc ial

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development and the most likely path for trucks accessing the site would be to utilize the driveway directly onto Fremont Boulevard and the joint access driveway off of Ice House Terrace across from the Glacier Ice truck facility. Ice House Terrace is a wide private street that is capable of safely accommodating truck traffic. The nearby commercial development has multiple access points which allows passenger vehicles to access that neighboring site without traveling through the proposed industrial deve lopment, which should avoid vehicular movement conflicts and Ice House Terrace is a relatively straight and wide roadway which would allow trucks and passenger vehicles to see far enough ahead to avoid potential conflicts during turning movements . The prop osed design and truck routing has been reviewed by City Transportation Engineering staff.

Economic Development Policy 6 -1.1: Increasing the Tax Base – Encourage economic development that generates sales tax, property tax, and other revenues that help sust ain municipal services.

Economic Development Policy 6 -1.4: Large Sales Tax and Employment Generators – In order to attract and retain businesses that generate large amounts of sales tax or number of jobs, incentives or special considerations should be pro vided to these businesses because of the significant economic benefit they provide to the City. These special considerations may include variations to development standards (e.g., floor area, parking, signage), wayfinding signage in the public right of way , expedited permit processing, or other considerations to facilitate attraction or retention of these businesses. A business providing such a sales tax benefit that would be eligible for such consideration(s) includes those that generate a minimum of one m illion dollars or more in annual revenue to the City (including sales tax, property tax, transit occupancy tax, and/or other applicable direct City revenue source) within three years after start of operations of the business.

Economic Development Policy 6 -3.1: Diverse Industrial and Technology Uses – Provide for a variety of industrial uses to minimize the impact of industry -specific downturns on the local economy, to provide a range of job opportunities for local residents, and to provide opportunities for synergy between various industries.

Economic Development Policy 6 -3.2: Attracting Emerging Growth Industries – Recruit and retain emerging growth (industries with significant employment and performance potential) industries in order to increase employme nt opportunities for a wide range of skill levels and salaries to meet current and future employment, with an emphasis on industries such as high tech, biotech and clean tech that seek to locate in Silicon Valley.

Analysis: The project site has been vacan t for years. The Western Precooling warehouse building was torn down in the 1990s and the business office has been vacant since at least 2022. According to an economic analysis prepared by Strategic Economics (Informational 2) retained by the City , the tre nd towards customers purchasing goods online has hurt the site’s viability as a regional commercial center. A future large, regionally oriented shopping center at the site would need to compete with a substantial existing supply of retail serving customers from within the same regional trade area, further limiting the likelihood of a developer pursuing a regional retail destination at the site. The project site is also unlikely to attract demand for smaller, local -serving retail uses allowable under the cur rent zoning.

The recent closure of the REI store next door demonstrates the challenge large retail tenants have in this location. Furthermore, the site lacks visibility from Auto Mall Parkway

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and has poor connections to existing residential uses , which is becoming increasingly important for retail centers.

Conversely, the City’s consultant noted the current high demand for industrial land in the City and the greater Bay Area, particularly for uses such as product distribution, last -mile strategic locations, and advanced manufacturing. This demand is contrasted by a low supply of available land and low vacancy rates for industrial / advanced manufacturing space in the City. The economic analysis highlights that the proposed project would be the best, most feasible use of the site, and further notes that the relative stability and strength of the industrial market would result in a high probability that the project remains financially viable for the developer in both the short - and long -term as well as increa se economic development opportunities for the City . Per the consultant, n ew industrial space at the subject site would be well -positioned to attract a diverse set of businesses, including businesses engaged in advanced manufacturing, and warehouse and distribution activities.

The proposed project would be subject to development impact fees, after credits for the existing building and any other eligible credits for buildings demolished after the implementation of impact fees in Fremont . Under the current fe e schedule, the project can be expected to pay impact fees of over $510,000 for a warehouse user and over $480,000 for a manufacturing user. Year one tax revenue would be anticipated to be $78,517 for a warehouse use and $82,131 for a manufacturing use. Total tax revenues to the City over 10 years would be over $783,000 for a warehouse and about $820,000 for a manufacturing use.

Additionally, t he applicant has voluntarily pledged a community benefit of $100,000, payable to the City as a lump -sum upon issuance of the project building permit, to be used for a community initiative or program at the City’s discretion.

Zoning Regulations
The subject property is currently zoned Regional Commercial (C -R). The applicant is requesting a Rezoning of the site to Tech Industrial (I-T), to enable the construction of an industrial development consisting of approximately 70,000 square feet of floor area. In the I-T zoning district, industrial buildings over 0.35 FAR are limited to warehouse or manufacturing uses. As the a pplicant is proposing a building of 0.38 FAR, this limitation would apply.

The following table provides an overview of the project’s conformance with the development standards of the I-T zone:

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Though specific tenants for the proposed building are not known at this stage, contemplated project occupants include advanced manufacturing and/or warehousing, which are allowed in the I-T zoning district and allowed at the proposed FAR.

The following table provides an overview of the project’s conformance with the on -site parking requirements applicable to each building:

Standard I-T Zone
Requirement
(FMC Table

18.50.030)
Proposed Project Compliant
(Yes/No)
Minimum Lot Area 20,000 SF 181,487 square feet
Yes
Minimum Lot
Width
70 Feet 256 feet
Yes
Minimum Front
Setback
25 Feet (when
across the street
from non-
residential)
25 feet – 10 inches
Yes
Minimum Rear
Setback
None (when
adjacent to non-
residential)
80 feet
Yes
Minimum Side
Setback (interior)
None (when
adjacent to non-
residential)
84 feet
Yes
Minimum Side
Setback (Private
Street)
25’ from the right
of way line
43 feet
Yes
Maximum Building
Height
75 Feet 38 feet
Yes
Maximum Floor
Area Ratio (FAR)

0.35, except 0.45
for warehousing
and manufacturing
facilities

0.38 FAR
Yes

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As the table shows, all parking requirements for the proposed project would be met. Per FMC 18.183.130, credit is provided for moto rcycle spaces and excess bike parking at a ratio of 2 motorcycle spaces counting as 1 vehicle space and 8 bicycle spaces counting as 1 vehicle space. Of the 107 total automobile parking stalls, 31 would be designed for electric vehicle use and equipped wit h charging stations in accordance with building code regulations. An additional 26 spaces would be pre -wired for EV charging but would not have the chargers themselves installed immediately.

Design Analysis
Site Planning:

The proposed project’s building is sited and oriented in such a way as to provide adequate setbacks from public streets and adjacent uses and conceal truck bays and related loading operations from public right -of-way view and view from neighboring properties. Project frontages would feat ure wide, heavily -planted landscape buffers to conceal the surface parking and drive aisle areas that wrap the rear and side of the building and provide a buffer between neighboring developments. Since trucking operations would be required to utilize Ice House Terrace for site ingress, drive aisles leading directly from the truck bays of the building would be 35 feet in width, wider than drive aisles elsewhere within the project that are primarily intended to serve as access to passenger vehicle parking for visitors to the building with a separate driveway off Ice House Terrace. The building would be oriented such that the main entry area would be located on Ice House Terrace, and its truck bays Standard Requirement
(FMC Chapter 18.183)
Proposed Project Compliant
(Yes/No)
Minimum
Automobile
Parking Stall
Count
Warehouse/Manufacturing:
5 per 1,000 square feet of
office area and similar
activities plus 1.25 per KSF
other indoor areas,
minimum of 1.6 per KSF
average overall
(112 spaces required)
107 Vehicle parking spaces.
6 Motorcycle spaces (2
motorcycle spaces counts as
1 vehicle space)
16 Bike parking in addition
to minimum required (8
bicycle counts as 1 vehicle
space)
Total vehicle spaces and
equivalent: 112 spaces

Yes
Maximum
Compact Parking
Stall Count
35% of total 34% of total vehicle spaces
required
(38 stalls)
Yes
Minimum Bicycle
Parking, Short-
Term
4 + 5% of the total
required vehicle parking
spaces
(10 spaces required)
26 spaces
(16 more than required)
Yes
Minimum Bicycle
Parking, Long-
Term
1 + 5% of the total
required vehicle parking
spaces
(7 spaces required)
8 spaces Yes

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and loading areas, and trash enclosures would be screened from view by either the building itself or landscape treatments and located far away from Ice House Terrace and Fremont Blvd. City Transportation Engineering staff have reviewed the proposed truck turning templates and have accepted the design as configured. The length and width of Ice House Terrace would allow vehicles to see each other from far enough away to allow for truck turning movements to be made safely.

Architecture:

The proposed project’s building would feature a high-quality, contemporary industria l aesthetic. The building design has been enhanced through the project’s multi -round staff- level review process. The concrete tilt -up paneled building would feature increased articulation and double -height glazing at the location of interior lobby and offi ce space on Ice House Terrace and convey a sense of openness and invitation. Various locations on the building’s Ice House Terrace frontage would also feature glazing from the ground to the roof. At the corner of Ice House Terrace and Fremont Boulevard, th e glazing would be on the upper level of the building with a decorative awning wrapping the corner. Building facades feature changes in plane to create relief and shadow lines, and bands of clerestory glass, color accents, and vertical sections of roofline variation add additional interest to the building. Building architecture has been found consistent with the applicable provisions of the Citywide Design Guidelines for non-residential building design.

Access/Circulation:

The project would take its acces s via two driveways along Ice House Terrace, one driveway for passenger vehicles only and one existing shared accessway for trucks entering the site .

A driveway on Fremont Boulevard would serve trucks leaving the site as well as employee passenger vehicles . Emergency vehicle and truck turn template overlays applied to the proposed site plan have been reviewed by Fire Department, Environmental Services, and Transportation Division staff and deemed consistent with City standards.

An Emergency Vehicle Access Easement would encircle the building, and Fire Department staff have verified that the necessary quantity of access points to the site have been provided.

Street improvements along Fremont Boulevard would include a dedication of frontage which would allo w for a new sidewalk and planter strip where a monolithic curb and sidewalk exists now.

Tree Removal/Replacement:

There are currently a total of 34 trees on the project site that are subject to the City’s Tree Preservation Ordinance (FMC 18.215). The project proposes to remove 31 protected trees from the project site. These trees slated for removal are located within the footprint of the building or within the proposed drive aisles or other required improvements. An arborist report prepared for the project analyzed the trees and identified trees that were healthy enough for preservation and not impacting the proposed development. City landscape architecture review staff reviewed the proposed tree removal plan and determined that the removal of the selected trees was reasonable to allow development of the site.

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The project proposes to plant 25 trees as mitigation trees, that is, trees in addition to those required street trees and parking lot trees. The difference in the number of trees removed to mitigation trees planted would necessitate payment of a tree mitigation fee to the city for each protected tree removed and not mitigated on -site with a new tree. This fee would go to the City’s urban forestry fund to pay for additional tree plantings elsewhere in t he City.

Overall, the project proposes planting 77 new trees at the site. Tree locations, quantities, and species have been deemed suitable and sufficient for the project by the City’s landscape architecture review staff.

Grading/Drainage:

The project si te is generally level. Project grading activities would consist of preparing the site to accommodate the building pad and parking lots with a level fine grade. The project engineer estimates cuts and fills of 2 feet to 5 feet from the existing grade to achieve pad grading and drainage, with a net of 100 cubic yards of cut exported from the site.

The Municipal Regional Stormwater National Pollution Discharge Elimination System (NPDES) Permit (MRP) requires all new and redevelopment projects to incorporate measures to prevent pollutants from being conveyed in stormwater runoff and into the public storm drain system. This project would be required to comply with the MRP by incorporating source controls and treatment measures into the project design. The proposed stormwater treatment would be nine bioretention basins constructed around the building to treat stormwater runoff from impervious surfaces throughout the site.

Lot Line Adjustment: The project site currently has a property line traveling through the center of the site on a roughly north -south direction. In order to construct the proposed building, this lot line would need to be removed. The proposed lot line adjustment would not modify the exterior lot lines that bound the project site. No variance would be required from City development standards as part of the lot line adjustment and the site would continue to be served by existing and upgraded utilities. Lot line adjustments are processed as a separate instrument by the Planning Manager. A condition of approval would require the lot line adjustment to be recorded prior to the issuance of a building permit.

Summary Vacation: A ten-foot-wide public utility easement meanders through the site under the proposed footprint of the building. The applicant has requested a summary vacation of the easement to remove it from the site. The City sent notices to utility companies and agencies. No utility company or agency has objected to the summary vacation or reported that the easement contains their infrastructure . For this reason, the project can propose to vacate the easement via a summary vacation, a streamlined process to vacate easements that are not being utilized. A condition of approval would require the vacation of the easement to be completed prior to the issuance of a building permit.

Public Improvements:

Improvements to the public rights -of-way adjacent to the project site would include a number of dedications and other exactions required by code and conditions of approval in order to offset the capita l improvements to public infrastructure necessary to support the project. A street dedication along Fremont Boulevard would allow a wider sidewalk separated from the vehicle traffic lanes by a planter strip. Utilities in front of the site would be undergrounded along Fremont Boulevard. An existing public utility easement that travels

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diagonally through the project site would be vacated and relocated to the perimeter of the site to allow for construction of the proposed building. Other private easements through the site would be similarly relocated by working with the easement rights holders. Those easements would need to be relocated prior to building permit issuance.

FINDINGS FOR APPROVAL
In order to approve the proposed project, it must be found to be consistent with the General Plan, Zoning Ordinance, and Subdivision Regulations. Based upon the above analysis, staff finds the proposed project would be in conformance with applicable standards and regulations and recommends approval of the following findings:

General Plan Amendment and Rezoning:

Pursuant to FMC Section 18.225.050, the Planning Commission may recommend to the City Council approval or approval with modifications of a proposed General Plan Amendment and Rezoning only when the following findings can be made:

(a) The proposed amendment is consistent with the general plan and, where the amendment is to the text of the general plan, it is consistent with the other policies and chapters; and

(b) The proposed amendment furthers the public interest, conven ience, and general welfare of the city.

Analysis: The proposed General Plan Amendment to designate the project site Tech Industrial will establish industrial land use allowances after a prior land use designation change from industrial to Regional Commerc ial failed over a period of approximately 10 years to result in the envisioned site development. A land use change to Tech Industrial will facilitate a substantial investment in the site consisting of a new approximately 70,000 - square-foot warehouse/manufacturing building that will improve what’s currently a blighted, skipped-over urban site with a development that’s compatible in use and scale with surrounding uses. The project will improve the site’s visual character and will support City innovation goals and enhance its strong industrial base, providing significant jobs and tax revenues. Public improvements such as fully redeveloped sidewalks and an applicant pledge of a $100,000 community benefit for unconditional use on community initiatives and/or programs will further the City welfare and interests.

The corresponding rezoning from Regional Commercial to the proposed Tech Industrial designation, which supports and recognizes the essential role in the Silicon Valley economy and the high volume of busine ss-to-business sales tax to the City that flexible industrial developments, such as the proposed project, contribute. Additionally, the proposed rezoning will improve a vacant, long -blighted site that is not well positioned to attract new local - or regional-serving retail -commercial development, as evidenced by the lack of site development since adoption of the current retail -commercial Regional Commercial zoning designation nearly 10 years ago and exacerbated by other factors such as the rise of e - commerce and the presence of established regional shopping venues in close proximity to the site, namely Pacific Commons and Downtown Fremont.

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Discretionary Design Review:

Pursuant to FMC 18.235.060, t he Planning Commission may recommend the City Council to approve, conditionally approve, or deny an application for discretionary design review. The approval authority shall approve or conditionally approve an application for discretionary design review only when all of the following findings can be made:

(a) The propos ed project is consistent with the general plan, any applicable community or specific plan, planning and zoning regulations, and any adopted design rules and guidelines;

Analysis: The proposed General Plan Amendment to designate the project site Tech Industrial will establish industrial land use allowances. The rezoning from Regional Commercial to the proposed Tech Industrial designation, would establish industrial development standards consistent with the Tech Industrial zoning designation. As described in the staff report, the proposed project would conform to the Tech Industrial development standards and the Citywide Design Guidelines.

(b) When a proposed project is inconsistent with an adopted design rule, the purpose and intent of the design rule is met through alternative means;

Analysis: The proposed project is consistent with the Citywide Design Guidelines as described in the staff report.

(c) The multifamily residential project’s architectural, site, and landscape design will not be detrimental to th e public health or safety; or a nonmultifamily project’s architectural, site, and landscape design will not unreasonably interfere with the use and enjoyment of adjacent development nor be detrimental to the public health, safety, or welfare;

Analysis: As described in the staff report, the proposed project would not unreasonably interfere with the use and enjoyment of adjacent development nor would it be detrimental to the public health, safety, or welfare. The project site is located within an industrial area with industrial neighbors to the north, south, and west of the project site. The Ice House Terrace private street is primarily utilized by vehicles visiting the Glacier Ice factory and the nearby Home Depot. City transportation engineers have reviewed the project’s truck turning templates and found the truck routes into and out of the site to be adequate. The truck docks would be located away from the nearby commercial users and would be recessed into the building providing screening from Fremont Boulevard. The project site contains sufficient parking for the potential uses under the Fremont Municipal Code. The project would be subject to City standard requirements related to noise, odors, vibration, and lighting.

Improved pedestrian facilities along Fremont Boulevard and new landscaping would enhance the site overall.

Lot Line Adjustment:

Pursuant to FMC 17.20.510, the Planning Manager may approve a lot line adjustment when he/she finds that:

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(a) The lot line adjustment does not violate existing codes an d policies; and

(b) The lot line adjustment will not create difficult or unreasonable access to the parcels; and

(c) The lot line adjustment would not require variances to permit standard development; and

(d) Utilities and public services can be provided to the rev ised parcels; and

(e) No street dedications or improvements are required.

Analysis: The proposed lot line adjustment would remove a lot line that travels through the center of the site on a roughly north -south direction. The adjustment would not create difficult or unreasonable access to the resulting parcel nor would it require variances to be approved. The site is currently served by all necessary utilities which would remain unchanged after the lot line adjustment. No street dedications or improvements are required as a result of the proposed lot line adjustment. A condition of approval would require the applicant to complete the lot line adjustment process prior to the issuance of a building permit.

Summary Vacation:

California Streets and Highways Code § 8333(a) allows summary vacation of public service easements when “[t]he easement has not been used for the purpose for which it was dedicated or acquired for five consecutive years immediately preceding the proposed vacation.” The proposed vacation meets t hese criterions because the easement has not been used by any agency and no facilities are located within the easement boundaries.

Tree Removal:

Pursuant to FMC Section 18.215.070, the following finding is required in order to allow for the proposed remov al of trees that are subject to protection under the City’s Tree Preservation Ordinance:

(a) Development project plans currently filed for the lot indicate that it is necessary to damage, remove, or relocate the trees to
enable reasonable and conforming use o f the property or to achieve a superior project; and the trees cannot be preserved or left undamaged by a reasonably required redesign of the project.

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Analysis: The project had an arborist report prepared which identified trees that would need to be removed to allow development of the site. The species, diameter, and health of each tree on the site was documented. Those trees slated for removal were either within the footprint of development or were not good candidates to preserve. The proposed project would include substantial landscaping, including planting new trees throughout the site.

CITY FEES
The project would be subject to citywide Development Impact Fees, including fees for fire protection, capital facilities, and traffic facilities. The project w ould also be subject to the affordable housing fees applicable to non -residential development. All applicable fees would be calculated and paid at the fee rates in effect at the time of building permit issuance. The applicant may elect to defer payment of the fees in accordance with the City’s Impact Fee Deferral Program.

ENVIRONMENTAL REVIEW
An Initial Study was commissioned for this project by the City and prepared by consulting firm LSA, was prepared for the project in accordance with CEQA (see Informat ional Item #1). The analysis, which was informed by a number of technical studies which were peer reviewed by LSA. These studies include air quality and greenhouse gases, biological resources, cultural resources, geotechnical analysis, a phase I environmen tal analysis, and a transportation study. The Initial Study demonstrated that the project would not have a significant impact on the environment under CEQA.

As such, a Draft Negative Declaration was prepared and circulated for public review in accordance with the requirements of CEQA (see Exhibit “A”). A comment letter from the Alameda County Water District (ACWD) was received on December 3, 2024 (enclosed as Informational 5). Comments contained in the letter are related to ACWD’s recommended clarifications for the circulated Draft Initial Study, applicable development standards and policies for the project, and past industrial use of the site.

The site previously contained leaking underground storage tanks (LUST) that were removed under the oversight of the Regional Water Quality Control Board and ACWD, and these agencies issued a no-further-action letter. ACWD recommends, however, that the site’s past industrial use be considered during development of a soil management plan (SMP) that is implemented during the construction of the project to address the potential discovery of soil contaminants. The applicant has reviewed ACWD’s comments, which they have agreed to satisfy during the building permit review process and implement during construction. The SMP w ill be prepared and approved by the City and ACWD in accordance with Fremont Municipal Code Section FMC 18.218.050 [Standard development requirements for resource protection] prior to building permit issuance. Accordingly, no special mitigation measures are required to address the comments because the City’s Ordinance and the recommended conditions of approval for the project clarify the applicability of this section to the project have been included in Exhibit F, which staff has met and shared with ACWD.

A memorandum has been prepared by LSA to document ACWD’s comments, comment responses, and changes and/or corrections made to the Draft Initial Study/Negative Declaration (enclosed as Informational 6).

PUBLIC NOTICE AND COMMENT

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Public hearing notification is applicable for the entitlements being requested. A total of 28 hearing notices were mailed to all owners and occupants of property within 300 square feet of the site, as well as all interested parties. The hearing notices were mailed on November 26, 2024. A Public Hearing Notice was also published by The Tri-City Voice on November 26, 2024.

City standard courtesy notice signs identifying the project were posted at the site in April 2024. These signs, located on Fremont Boulevard and Ice House Terrace, i dentify the project and provide a description of the proposed entitlements. The signs are currently at the site and visible to passersby.

During the course of the CEQA review for the project, two separate notices were provided to local tribal representati ves in accordance with state law related to General Plan Amendments ( SB18) and preparation of an initial study (AB52). Requests for tribal consultation were received from the Confederated Villages of Lisjan and the North Valley Yokuts tribes. The City met with both tribes’ representatives to discuss their consultation requests. No requests for changes to the project or special conditions were received and the consultations were closed at the end of each meeting.

RECOMMENDATION

1. Hold public hearing;

Recommend that the City Council:

2. Find, in accordance with CEQA Guidelines Section 15074 that it has considered the Negative Declaration as shown in Exhibit “A” together with any comments received during the public review process, that is was prepared in a ccordance with the requirements of CEQA, that there is no substantial evidence that the project will have a significant effect on the environment, and that this action reflects the independent judgment and analysis of the City of Fremont;

3. Find that the General Plan Amendment conforms with and contains the requirements provided for in the City’s planning processes, constitutes a suitable and logical change in the plan for physical development of the City of Fremont, and is in the public interest.

4. Find the project is in conformance with the relevant provisions contained in the City’s General Plan, including the designated goals and polices set forth in the Land Use, Mobility, and Economic Development Chapters of the General Plan as enumerated in the staff report;

5. Find that the project plans as shown in Exhibit “D” fulfill the applicable requirements set forth in the Fremont Municipal Code;

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6. Adopt a resolution approving a General Plan Amendment to change the land use designation from Regional Commercial to Tech Industrial, as shown in Exhibit “B;”

7. Introduce an ordinance rezoning the project site from Regional Commercial (C -R) to Tech Industrial (I -T) based upon the findings and subject to the conditions of approval set forth in Exhibit “F;”

8. Direct staff to prepare and the City Clerk to publish a summary of the resolution and ordinance.

ENCLOSURES
• Exhibit A - Draft Negative Declaration
• Exhibit B - General Plan Amendment
• Exhibit C - Rezoning Exhibit
• Exhibit D - Project Plans
• Exhibit E - LLA Plats and Calcs
• Exhibit F - Findings Conditions of Approval
• Informational 1 - Palisade Fremont Blvd Initial Study • Informational 2 - Palisade Fremont Boulevard Economic Analysis • Informational 3 - Project Renderings
• Informational 4 - Public Correspondence
• Informational 5 - ACWD Comments December 3, 2024
• Informational 6 - Palisade Fremont Blvd IS-ND RTC Errata Memo 12.5.24

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Minutes Planning Commission – December 12, 2024 PAGE 1

MINUTES

FREMONT PLANNING COMMISSION
REGULAR MEETING OF DECEMBER 12, 2024

CALL TO ORDER: Chairperson Zhang called the meeting to order at 7:00 p.m.

PRESENT: Chairperson Zhang
Vice Chairperson Basrai
Commissioners Craig, Ezzy, Yee, Ramamurthi
Commissioner Liu (arrived at 7:07 p.m.)

Commissioner Ezzy introduced himself as the newest appointment to the Planning Commission.

ABSENT: None

STAFF PRESENT: Joel Pullen, Planning Manager
Heather Lee, Senior Deputy City Attorney
James Willis, Senior Planner
Marc Cleveland, Associate Planner
Donovan Lazaro, Economic Development Director
Kim Salazar, Recording Clerk
Khanh Vo, IT Specialist II
Chavez Company, Remote Stenocaptioning
Napoleon Batalao, Video Technician

APPROVAL OF MINUTES: Commissioner Yee moved to approved minutes for the special meeting of November 21, 2024 and Commissioner Ramamurthi seconded. Motion carried by a unanimous vote of those present .

Commissioner Liu was absent for the vote and Commissioner Ezzy abstained.

DISCLOSURES: Commissioner Yee toured the project site for Item 1 (PLN2022- 00331) and spoke with a resident in the area. Commissioner Yee toured the project site for Item 2 (PLN2024 -00080) on two separate occasions, one with the applicant, and then revisited the project site for Item 3 (PLN2025-00071).

Commissioner Ramamurthi drove by the project sites for Items 1 (PLN2022-00331) and 3 (PLN2025-00071).

Commissioner Ezzy drove by the project site for Item 2 (PLN2024-00080) and received an introductory communication

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from the applicant. Commissioner Ezzy also drove by the project site for Item 3 (PLN2025-00071).

Commissioner Craig drove by the project site for Item 2 (PLN2024-00080) and spoke with the applicant, as well as community members in the area. Commissioner Craig also drove by the project site for Item 3 (PLN2025-00071) and spoke with community members in the area.

Vice Chairperson Basrai drove by the project site for Item 1 (PLN2022-00331) a couple of times, and met with the applicant for Item 2 (PLN2024 -00080) to discuss the project. Vice Chairperson Basrai drove by the project site for Item 3 (PLN2025- 00071) multiple times and spoke with a few residents in the area.

Chairperson Zhang drove by the project site s for Item s 1 (PLN2022-00331) and 2 (PLN2024 -00080); and revisited the project site for Item 3 (PLN2025-00071) and spoke with a couple of residents in the area.

Commissioner Liu arrived at 7:07 p.m.

Commissioner Liu stated that he would be recusing himself from the public hearing for Item 1 (PLN2022-00331), due to a previous business relationship with the applicant. Commissioner Liu drove by the project site for Item 3 (PLN2025-00071).

Timestamps from the video webcast are listed below each Public Hearing Item Number and are in hours format, as follows: (hours:minutes:seconds). Video webcasts of Planning Commission meetings can be found at: https://fremontca.viebit.com/#

CONSENT CALENDAR None

PUBLIC/ORAL
COMMUNICATIONS None

PUBLIC HEARING ITEMS

Item 1. LI BAO LI TOWNHOMES – 4467 Central Avenue – PLN2022-00331 – To (00:10:15) consider a Discretionary Design Review, Vesting Tentative Tract Map No. 8692, Modification of Zoning Standards, and a Private Street to construct 10 for -sale, attached townhouse units across two buildings on an approximately 0.45 acre site at 4467 Central Avenue in the Centerville Community Plan Area; and to consider a finding that no further environmental review is required pursuant to an exemption from the requirements of the California Environmental Quality Act (CEQA) per CEQA Section 15332, Infill Development Projects, and a finding that no further environmental

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review is required pursuant to CEQA Guidelines Section 15183, as the project is consistent with the density established by the General Plan, for which an Environmental Impact Report (EIR) (SCH#2010082060) was previously prepared and certified, and CEQA Guidelines Sections 15162 and 15164, as none of the circumstances requiring preparation of a subsequent or supplemental EIR have occurred.

Commissioner Liu recused himself from the public hearing of this item and exited Chambers.

Planning Manager Joel Pullen gave a brief explanation of why th is item was being continued.

Chairperson Zhang opened and closed the public hearing, as there were no public speakers for this item.

IT WAS MOVED (YEE/CRAIG) AND CARRIED BY THE FOLLOWING VOTE (6- 0-0-0-1) THE PLANNING COMMISSION – HELD PUBLIC HEARING; AND
CONTINUED THE PROJECT TO A DATE UNCERTAIN.

The motion carried by the following vote:

AYES: 6 – Basrai, Craig, Ezzy, Ramamurthi, Yee, Zhang
NOES: 0
ABSTAIN: 0
ABSENT: 0
RECUSE: 1 – Liu

Commissioner Liu rejoined the meeting in Chambers.

Item 2. PALISADE FREMONT BOULEVARD – Fremont Boulevard & Ice House (00:15:50) Terrace – PLN2024-00080 – To consider a proposed General Plan Amendment from Regional Commercial to Tech Industrial, corresponding rezoning from Commercial – Regional (C -R) to Tech Industrial (I-T), Discretionary Design Review, Lot Line Adjustment, and Summary Vacation of public utility easements to facilitate the development of an approximately 70,000 -square-foot industrial building; and to consider a Draft Negative Declaration prepared and circulated for the project in accordance with the requirements of the California Environmental Quality Act (CEQA).

Planning Manager Joel Pullen introduced the item.

Senior Planner James Willis gave a comprehensive presentation with assistance from Economic Development Director Donovan Lazaro . Staff responded to questions regarding fiscal benefits, bike lanes, anticipated type of industries, history of rezoning requests, features of a contemporary manufacturing facility, and commercial versus industrial zoned uses.

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Chairperson Zhang opened the public hearing for this item.

John Peterson , partner with North Palisade Partners , spoke to the project and responded to questions related to subdivision possibilities, solar, expansion possibilities, and traffic flow for trucks.

Victor De la Torre and Olegario Guzman, both representing Liuna Laborers, spoke in support of the project.

Kelly Abreu, Fremont resident, spoke regarding industrial development, and stated he supported the project.

Chairperson Zhang closed the public hearing on this item.

IT WAS MOVED (EZZY/CRAIG) AND CARRIED BY THE FOLLOWING VOTE (7-0-0-0-0) THE PLANNING COMMISSION – HELD PUBLIC HEARING; AND
RECOMMENDED THAT THE CITY COUNCIL:

FIND, IN ACCORDANCE WITH CEQA GUIDELINES SECTION 15074 THAT IT

HAS CONSIDERED THE NEGATIVE DECLARATION AS SHOWN IN EXHIBIT “A” TOGETHER WITH ANY COMMENTS RECEIVED DURING THE PUBLIC

REVIEW PROCESS, THAT WAS PREPARED IN ACCORDANCE WITH THE

REQUIREMENTS OF CEQA, THAT THERE IS NO SUBSTANTIAL EVIDENCE

THAT THE PROJECT WILL HAVE A SIGNIFICANT EFFECT ON THE

ENVIRONMENT, AND THAT THIS ACTION REFLECTS THE INDEPENDENT JUDGMENT AND ANALYSIS OF THE CITY OF FREMONT;
AND

FIND THAT THE GENERAL PLAN AMENDMENT CONFORMS WITH AND
CONTAINS THE REQUIREMENTS PROVIDED FOR IN THE CITY’S

PLANNING PROCESSES, CONSTITUTES A SUITABLE AND LOGICAL

CHANGE IN THE PLAN FOR PHYSICAL DEVELOPMENT OF THE CITY OF FREMONT, AND IS IN THE PUBLIC INTEREST;
AND

FIND THE PROJECT IS IN CONFORMANCE WITH THE RELEVANT
PROVISIONS CONTAINED IN THE CITY’S GENERAL PLAN, INCLUDING THE

DESIGNATED GOALS AND POLICES SET FORTH IN THE LAND USE,

MOBILITY, AND ECONOMIC DEVELOPMENT CHAPTERS OF THE GENERAL PLAN AS ENUMERATED IN THE STAFF REPORT;
AND
FIND THAT THE PROJECT PLANS AS SHOWN IN EXHIBIT “D” FULFILL THE

APPLICABLE REQUIREMENTS SET FORTH IN THE FREMONT MUNICIPAL CODE;
AND

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ADOPT A RESOLUTION APPROVING A GENERAL PLAN AMENDMENT TO

CHANGE THE LAND USE DESIGNATION FROM REGIONAL COMMERCIAL TO TECH INDUSTRIAL, AS SHOWN IN EXHIBIT “B;”
AND

INTRODUCE AN ORDINANCE REZONING THE PROJECT SITE FROM

REGIONAL COMMERCIAL (C-R) TO TECH INDUSTRIAL (I-T) BASED UPON

THE FINDINGS AND SUBJECT TO THE CONDITIONS OF APPROVAL SET FORTH IN EXHIBIT “F;”
AND

DIRECT STAFF TO PREPARE AND THE CITY CLERK TO PUBLISH A SUMMARY OF THE RESOLUTION AND ORDINANCE.

The motion carried by the following vote:

AYES: 7 – Basrai, Craig, Ezzy, Liu, Ramamurthi, Yee, Zhang NOES: 0
ABSTAIN: 0
ABSENT: 0
RECUSE: 0

Chairperson Zhang called for a brief recess at 8:15 p.m. and reconvened the meeting at 8:28 p.m.

Item 3. ELLSWORTH MIXED USE EXTENSION – 43401 Ellsworth Street – PLN2025- (01:30:06) 00071 – To consider a 24-month time extension for a project previously entitled under PLN2021-00292 comprising a Discretionary Design Review Permit, Tentative Tract Map No. 8596, and a Private Street in conjunction with a mixed use development containing approximately 4,581 square feet of commercial space and 12 residential units consisting of six duet units in three buildings and six detached townhomes in the Mission San Jose Community Plan Area and the Mission San Jose Historical Overlay District; and to consider exemptions for the proposed extension from the Cali fornia Environmental Quality Act (CEQA), each on a separate and independent basis, pursuant to CEQA Guidelines §15061(b)(3) (Review for Exemption), §15162 (Subsequent EIRs and Negative Declarations), and/or §15183 (Projects Consistent with a Community Plan, General Plan, or Zoning).

Planning Manager Joel Pullen introduced the item and Associate Planner Marc Cleveland responded to questions from the Commission regarding extension timelines.

Chairperson Zhang opened the public hearing for this item.

Terry Wang, Project Manager at Robson Homes , responded to questions from the Commission regarding the delay of the project.

Chairperson Zhang closed the public hearing for this item.

IT WAS MOVED (RAMAMURTHI/YEE) AND CARRIED BY THE FOLLOWING VOTE (7-0-0-0-0) THE PLANNING COMMISSION – HELD PUBLIC HEARING:

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AND

FOUND THAT NO FURTHER ENVIRONMENTAL REVIEW IS REQUIRED

PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) GUIDELINES, PER SECTION 15061(B)(3) AS THE TIME EXTENSION CAN BE

SEEN WITH CERTAINTY TO NOT HAVE A SIGNIFICANT EFFECT ON THE ENVIRONMENT, CEQA GUIDELINES SECTION 15162 AS THE PROPOSED

EXTENSION IS CONSISTENT WITH THE PREVIOUSLY PREPARED AND

ADOPTED EIR AND NONE OF THE CIRCUMSTANCES NECESSITATING

PREPARATION OF A SUBSEQUENT OR SUPPLEMENTAL EIR ARE PRESENT (SCH# 2018072040), AND/OR CEQA GUIDELINE S SECTION 15183, AS THE

PROJECT IS CONSISTENT WITH THE DENSITY ESTABLISHED BY THE

GENERAL PLAN, AND/OR ZONING FOR WHICH AN ENVIRONMENTAL IMPACT REPORT (EIR) (SCH#2010082060) WAS PREVIOUSLY PREPARED AND CERTIFIED. EACH OF THE FOREGOING PROVIDES A SEPARATE AND INDEPENDENT BASIS FOR CEQA COMPLIANCE;
AND
APPROVED A 24 -MONTH TIME EXTENSION FOR THE PROJECT’S

DISCRETIONARY DESIGN REVIEW PERMIT, VESTING TENTATIVE TRACT MAP NO. 8596, AND PRIVATE STREET, SUBJECT TO THE ORIGINAL FINDINGS AND CONDITIONS.

The motion carried by the following vote:

AYES: 7 – Basrai, Craig, Ezzy, Liu, Ramamurthi, Yee, Zhang NOES: 0
ABSTAIN: 0
ABSENT: 0
RECUSE: 0

Item 4. 2024 CODE UPDATE – HOUSING ELEMENT IMPLEMENTATION – (01:44:22) Citywide – PLN2025-00074 – To consider adoption of a resolution for objective design standards for historic homes to implement programs contained within the adopted Housing Element and an ordinance for an associated text amendment to the Historic Resources Chapter (FMC Chapter 18.175); and to consider exemptions for the proposed amendments from the requirements of the California Environmental Quality Act (CEQA), each on a separate and independent basis, pursuant to CEQA Guidelines §15061 (Review for Exemption), §15183 (Projects Consistent with a Community Plan, General Plan, or Zoning) and/or §15162, Subsequent EIRs and Negative Declarations, §15262 (Feasibility and Planning Studies), and §15378 (Project).

Planning Manager Joel Pullen introduced the item.

Senior Planner James Willis gave a comprehensive presentation with assistance from consultants Stacy Kozakavich, from Page & Turnbull, and Aaron Aknin from Good City Company, and also responded to clarifying questions from the Commission.

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Chairperson Zhang opened and closed the public hearing, as there were no public speakers for this item.

IT WAS MOVED (BASRAI/CRAIG) AND CARRIED BY THE FOLLOWING VOTE (7-0-0-0-0) THE PLANNING COMMISSION – HELD PUBLIC HEARING; AND
RECOMMENDED THAT THE CITY COUNCIL:

FIND THAT THE PROJECT IS EXEMPT FROM THE REQUIREMENTS OF THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PER, WITHOUT LIMITATION, CEQA GUIDELINES SECTION 15061 REVIEW FOR
EXEMPTION, CEQA GUIDELINES SECTION 15262 FEASIBILITY AND PLANNING STUDIES, AND CEQA GUIDELINES 15378 PROJECT, AND FIND

THAT NO FURTHER ENVIRONMENTAL REVIEW IS REQUIRED PURSUANT TO CEQA GUIDELINES SECTION 15183, AS THE PROJECT IS CONSISTENT

WITH THE GENERAL PLAN, FOR WHICH AN ENVIRONMENTAL IMPACT REPORT (EIR) (SCH#2010082060) WAS PREVIOUSLY PREPARED AND CERTIFIED AND/OR §15162 SUBSEQUENT EIRS AND NEGATIVE
DECLARATIONS;
AND

FIND THAT THE PROPOSED ZONING TEXT AMENDMENT AND OBJECTIVE STANDARDS ARE CONSISTENT WITH THE FREMONT GENERAL PLAN; AND

FIND THAT THE PROPOSED ZONING TEXT AMENDMENT AND OBJECTIVE

STANDARDS FURTHER THE PUBLIC INTEREST, CONVENIENCE, AND

GENERAL WELFARE OF THE CITY BY ENSURING CONSISTENCY
BETWEEN THE FMC AND THE CITY’S GENERAL PLAN, WITH STATE LAW,

AND PROVIDE FOR A STREAMLINING OF THE PROCESS OF REVIEWING

ELIGIBLE HISTORIC RESOURCES BY PROVIDING DEVELOPMENT

STANDARDS THAT ARE RELEVANT TO CURRENT DEVELOPMENT

REGULATIONS, OBJECTIVE, EASY TO USE, FLEXIBLE AND EQUITABLE, AND ENSURE THE HEALTH AND SAFETY OF FREMONT RESIDENTS;
AND
INTRODUCE THE ORDINANCE AMENDING TITLE 18 (PLANNING AND ZONING) ATTACHED TO THIS REPORT AS EXHIBIT B;
AND

ADOPT THE RESOLUTION ATTACHED TO THIS REPORT AS EXHIBIT C, IMPLEMENTING PROGRAM 4 OF THE CITY’S 2023-2031 HOUSING ELEMENT

TO IDENTIFY OBJECTIVE DESIGN STANDARDS FOR MODIFYING ELIGIBLE

HISTORIC RESOURCES FOR SINGLE FAMILY AND TWO FAMILY
RESIDENTIAL DEVELOPMENT.

The motion carried by the following vote:

AYES: 7 – Basrai, Craig, Ezzy, Liu, Ramamurthi, Yee, Zhang NOES: 0
ABSTAIN: 0

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ABSENT: 0
RECUSE: 0

DISCUSSION ITEMS

MISCELLANEOUS ITEMS

Information from Commission and Staff:

• Information from staff, as reported by Planning Manager Joel Pullen:

o The next meeting is tentatively scheduled for January 23, 2025. o Reminder that t he annual Planning Commission Academy is scheduled for March 5 -7, 2025 in Santa Rosa, California.
o Election of Officers will be held during the first meeting in 2025.

• Actions from City Council Regular Meetings: None

• Information from Commission:

o Commissioner Yee encouraged his fellow Commissioners to attend the Planning Commission Academy in March.
o Chairperson Zhang publicly thanked staff and his fellow Commissioners for their support during his time as Chair.

ADJOURNMENT

Meeting adjourned at 9:30 p.m.

SUBMITTED and APPROVED BY:

Kim Salazar, Recording Clerk Joel Pullen, AICP, Secretary Planning Commission Planning Commission

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