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Informational 7 - Planning Commission Staff Report

Fremont City Council
January 14, 2025

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Informational 7 - Planning Commission Staff Report
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January 14, 2025
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Planning Commission
December 12, 2024

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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 Planning Commission Report (ID # 5317) Meeting of December 12, 2024 PALISADE FREMONT BOULEVARD PLN2024-00080 Page 2
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 Planning Commission Report (ID # 5317) Meeting of December 12, 2024 PALISADE FREMONT BOULEVARD PLN2024-00080 Page 3
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, Planning Commission Report (ID # 5317) Meeting of December 12, 2024 PALISADE FREMONT BOULEVARD PLN2024-00080 Page 4
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 Planning Commission Report (ID # 5317) Meeting of December 12, 2024 PALISADE FREMONT BOULEVARD PLN2024-00080 Page 5
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 Planning Commission Report (ID # 5317) Meeting of December 12, 2024 PALISADE FREMONT BOULEVARD PLN2024-00080 Page 6
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:

Planning Commission Report (ID # 5317) Meeting of December 12, 2024 PALISADE FREMONT BOULEVARD PLN2024-00080 Page 7

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
Planning Commission Report (ID # 5317) Meeting of December 12, 2024 PALISADE FREMONT BOULEVARD PLN2024-00080 Page 8

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
Planning Commission Report (ID # 5317) Meeting of December 12, 2024 PALISADE FREMONT BOULEVARD PLN2024-00080 Page 9
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.

Planning Commission Report (ID # 5317) Meeting of December 12, 2024 PALISADE FREMONT BOULEVARD PLN2024-00080 Page 10
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 Planning Commission Report (ID # 5317) Meeting of December 12, 2024 PALISADE FREMONT BOULEVARD PLN2024-00080 Page 11
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.

Planning Commission Report (ID # 5317) Meeting of December 12, 2024 PALISADE FREMONT BOULEVARD PLN2024-00080 Page 12
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:

Planning Commission Report (ID # 5317) Meeting of December 12, 2024 PALISADE FREMONT BOULEVARD PLN2024-00080 Page 13

(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.

Planning Commission Report (ID # 5317) Meeting of December 12, 2024 PALISADE FREMONT BOULEVARD PLN2024-00080 Page 14
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
Planning Commission Report (ID # 5317) Meeting of December 12, 2024 PALISADE FREMONT BOULEVARD PLN2024-00080 Page 15
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;

Planning Commission Report (ID # 5317) Meeting of December 12, 2024 PALISADE FREMONT BOULEVARD PLN2024-00080 Page 16

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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