Fremont City Council Meeting: 06/09/26 07:00 PM
3300 Capitol Avenue Div/Dept: Planning
Fremont, CA 94538 Category: Development Project
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5745) DOC ID: 5745
Updated: 6/5/2026 10:54 AM by Alberto Quintanilla Page 1 Sterling Osgood Road GPA & Rezoning – 43800 Osgood Road - PLN2025-00100 - (Public Hearing) To consider a proposed General Plan Amendment from Regional Commercial to Tech Industrial, a corresponding Rezoning from Commercial – Regional (C-R) to Tech Industrial (I-T), a Discretionary Design Review Permit, and other land use entitlements for the 11.21-acre property at 43800 Osgood Road in the Irvington Community Plan Area; and to consider a Negative Declaration prepared and circulated for the project in accordance with the requirements of the California Environmental Quality Act (CEQA).
Contact Persons:
Name: Marc Cleveland David Wage
Title: Associate Planner Planning Manager
Div/Dept: Planning Community Development
Phone: 510-494-4543 510-494-4447
E-Mail: [email protected] [email protected]
Executive Summary: The Applicant proposes a General Plan Amendment to redesignate the land use of a 11.21-acre site located at 43800 Osgood Road from Regional Commercial to Tech Industrial, a corresponding Rezoning from Regional Commercial (C-R) to Tech Industrial (I-T), a Discretionary Design Review Permit, and other minor entitlement approvals.
Background: The project site was the home of Fry’s Electronics, a predominantly Bay Area electronics chain retail store that has since ceased all operations. The existing 143,815-square-foot building that housed Fry’s’ retail-commercial operations, completed in 1999, was originally intended as a speculative industrial warehouse building consistent with the site’s previous zoning, I-L (Light Industrial). In 1998, while it was under construction, GPA-98-8, Z-98-7 and U-98-3 were approved which changed the land use and zoning from I-L (Light Industrial) to I-R (Restricted Industrial) with a Commercial/Industrial Overlay District, which expanded uses to include large-box retail under a use permit, such as the former Fry’s Electronics at the site. Upon establishment of the C-R (Regional Commercial) land use in the General Plan, the site was redesignated and rezoned (to its current Regional Commercial status) as part of the City-wide General Plan Updates and Rezonings in 2011 and 2015, respectively.
Fry’s Electronics operated at this location until 2021, when the company ceased operations. The Property has remained vacant since that closure, and the current owner purchased it in June 2024.
Council Staff Report (ID # 5745) Meeting of June 9, 2026 Updated: 6/5/2026 10:54 AM by Alberto Quintanilla Page 2 Planning Commission Hearing
On April 23, 2026, the Planning Commission held a public hearing to consider the proposed project. After receiving staff and applicant presentations and testimony from the public, the commissioners discussed the proposal and ultimately voted 6-0 (one commissioner absent) to recommend approval of the project to the City Council.
Discussion/Analysis:
Project Description
The project site is currently developed with an approximately 143,815- square-foot, 37-foot-tall building with an associated surface parking lot. The applicant is requesting approval of a General Plan Amendment, Rezoning, Discretionary Design Review Permit, and other minor entitlements to accommodate the adaptive reuse of the existing building for proposed industrial operations.
Proposed building and site improvements would include demolishing certain existing tenant improvement features; replacing the existing roof; upgrading power service to the building; the addition of an interior mezzanine level of approximately 6,000 square feet in the southwest corner of the building; new loading and receiving docks and drive-in doors; and façade design improvements. The interior layout of the building will be determined by future tenants. The eastern portion of the building will provide an outdoor employee amenity area with a shade structure. No changes to the building’s height or footprint are proposed.
The proposed project would include up to 18 docking doors and 3 drive-in doors on the building’s south elevation. The proposed project would include a total of 365 auto parking stalls, 62 trailer parking stalls, and 44 bicycle rack parking stalls. Of the auto parking provided, 75 stalls would be electric vehicle (EV) capable, four stalls would be auto accessible, and four stalls would be van accessible. Of the 75 EV capable stalls, 56 stalls would not include electric vehicle supply equipment (EVSE), 17 stalls would include EVSE, one stall would be auto accessible, and one stall would be van accessible. There would be 62 separate stalls dedicated to truck trailer parking. The bicycle parking is divided into 24 short-term bicycle spaces and 20 bicycle spaces.
Council Staff Report (ID # 5745) Meeting of June 9, 2026 Updated: 6/5/2026 10:54 AM by Alberto Quintanilla Page 3
The proposed project would include new landscaping within new interior parking areas as well as along on the eastern, southern, and western boundaries of the project site. It is the intent to provide a solid evergreen screen from public right-of-way along the east and south landscape setbacks. New and revitalized landscape is proposed along the frontage of the project on Osgood Road with colorful and enhanced planting at entries to define entry points to the site. The proposed project would retain 76 trees out of the existing 133 currently existing on the site and plant an additional 198 trees located throughout the site.
The proposed project would install a new six-foot ADA compliant sidewalk along Osgood Road, as well as create a new ADA pedestrian curb ramp at the corner of Osgood Road and Auto Mall Park Way. A new traffic signal would be installed on Osgood Road to facilitate the safe exiting out of the north driveway going southbound on Osgood Road. The applicant also proposes coordinating the repair of a guardrail that has been damaged on the Corner of Osgood Road and Auto Mall Parkway.
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, administrative, sales, and engineering facilities, as well as warehouse and distribution, e-commerce fulfillment, and manufacturing facilities. The proposed General Plan Amendment would be consistent with the following General Plan goals and policies:
Land Use Goal 2-2.1: Opportunity Areas for Growth and Change – Guide new growth and development to specific areas, including 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 Council Staff Report (ID # 5745) Meeting of June 9, 2026 Updated: 6/5/2026 10:54 AM by Alberto Quintanilla Page 4 longer viable due to changing market conditions, demographics, or retail trends.
Land Use Policy 2-5.1: Land Supply and Job Growth – Maintain an industrial 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 should 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 alter the land use allowances of the site, which features an existing vacant building that has had no activity since 2021. The adaptive reuse of the building and site would be consistent with other sites along Osgood Road north of Auto Mall Parkway (to Blacow Road), which all uniformly carry an industrial designation. Conversion to the Tech Industrial designation and implementation of the proposed project would facilitate a significant investment in an underperforming 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.
Economic Development Policy 6-1.1: Increasing the Tax Base – Encourage economic development that generates sales tax, property tax, and other revenues that help sustain 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 provided 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 million 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.
Council Staff Report (ID # 5745) Meeting of June 9, 2026 Updated: 6/5/2026 10:54 AM by Alberto Quintanilla Page 5 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 employment 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 vacant since 2021 with no known commercial tenant prospects owing to the uniquely large size of the space.
According to the City commissioned Market Assessment and Economic Benefits Analysis for Change of Use at 43800 Osgood Road prepared by Strategic Economics (Informational 1), the trend towards customers purchasing goods online has hurt the site’s viability as a regional commercial center. The area’s existing supply of retail-commercial uses limits 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 that are allowable under the current zoning. The recent closure of the REI store south of the site, across Auto Mall Parkway, demonstrates the challenge large retail tenants have had in this area. Furthermore, the site has poor pedestrian 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 advanced manufacturing, product distribution, and last-mile strategic locations, all of which are permitted in the proposed I-T zoning district. 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 industrial uses 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, with the added benefit of increased economic development opportunities for the City. Per the consultant, new industrial space at the subject site would be well-positioned to attract a diverse set of Council Staff Report (ID # 5745) Meeting of June 9, 2026 Updated: 6/5/2026 10:54 AM by Alberto Quintanilla Page 6 businesses, including businesses engaged in advanced manufacturing, and warehouse and distribution activities. Because Fremont is the highest performing industrial market in the region, facilities such as this are likely to attract best-in-class end users that will add to the City’s already dynamic industrial economy.
The proposed project would be subject to development impact fees, after credits for the existing building. Under the current fee schedule, the project can be expected to pay onetime impact fees of over $65,000 for a warehouse user and over $63,000 for a manufacturing user. Year one tax revenue would be anticipated to be $123,760 for a warehouse use and $132,877 for a manufacturing use. Total tax revenues to the City over a 10- year outlook would approximate $1,308,765 for a warehouse use and about $1,402,069 for a manufacturing use.
Findings for Approval
Pursuant to FMC Section In order to approve the proposed project, it must be found to be consistent with the General Plan and Zoning Ordinance.
Based upon the above analysis, the Planning Commission recommended at the April 23, 2026, Planning Commission meeting that the City Council find that 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 City Council may approve or approve with modifications 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, convenience, and general welfare of the city.
Analysis: The proposed General Plan Amendment to designate the project site Tech Industrial will undo the land use designation change (to Regional Commercial) that was enacted by the 2011 General Plan Update, reverting the site back to industrial land use where it would be positioned for greater Council Staff Report (ID # 5745) Meeting of June 9, 2026 Updated: 6/5/2026 10:54 AM by Alberto Quintanilla Page 7 City benefit and economic success. A land use change to Tech Industrial will facilitate a substantial rehabilitation of the site and existing building that will improve the site’s visual character and support City innovation goals and enhance its strong industrial base, providing significant jobs and tax revenues. Public improvements such as fully redeveloped sidewalks and a new traffic signal are consistent with City welfare and interests.
The corresponding Rezoning from Regional Commercial (C-R) to the proposed Tech Industrial (I-T) designation supports and recognizes the essential role in the Silicon Valley economy and the high volume of business- to-business sales tax to the City that flexible industrial developments, such as those supported by the proposed project, contribute. Additionally, the proposed Rezoning will improve an under-utilized, tenant-less site that is not well positioned to attract new local- or regional-serving retail-commercial development due to a number of factors including 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.
Discretionary Design Review:
Pursuant to FMC 18.235.060, the City Council may approve, conditionally approve, or deny an application for discretionary design review. The City Council shall approve or conditionally approve an application for discretionary design review only when all of the following findings can be made:
(a) The proposed 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, which includes modification to the site’s building and surface features, would conform to the Tech Industrial development standards and the Citywide Design Guidelines.
Council Staff Report (ID # 5745) Meeting of June 9, 2026 Updated: 6/5/2026 10:54 AM by Alberto Quintanilla Page 8 (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 the public health or safety; or a non-multifamily 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 public health, safety, or welfare. The project site is located within an industrial area with existing industrial uses. 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 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 Osgood Road and new landscaping would enhance the site overall.
Tree Removal:
Pursuant to FMC Section 18.215.070, the following finding is required in order to allow for the proposed removal 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 of 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.
Council Staff Report (ID # 5745) Meeting of June 9, 2026 Updated: 6/5/2026 10:54 AM by Alberto Quintanilla Page 9 Analysis: The project had an arborist report prepared which identified trees that would need to be removed to allow implementation of the proposed project. 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.
Fiscal Impact: This project would be subject to citywide Development Impact Fees, including fees for fire protection, capital facilities, and traffic facilities. The project would also be subject to the commercial linkage 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.
Environmental Review: An Initial Study was prepared by consulting firm LSA for the project in accordance with the requirements of the California Environmental Quality Act (CEQA) (see Informational Item #1). The analysis was informed by a number of peer-reviewed technical studies, including those pertaining to air quality and greenhouse gases, biological resources, cultural resources, geotechnical analysis, a Phase I environmental site assessment, and transportation impacts. The Initial Study demonstrated that the project would not have a significant impact on the environment under CEQA, and that all potentially significant impacts are sufficiently addressed by the standard development requirements for resource protection adopted in the zoning ordinance. No mitigation measures were deemed necessary for project implementation. Accordingly, staff recommends adoption of the Negative Declaration attached as Exhibit A, with findings as specified in the Resolution attached as Exhibit B.
ATTACHMENTS:
• PLN2025-00100 Exhibit A - Negative Declaration and Initial Study • PLN2025-00100 Exhibit B - General Plan Amendment
• PLN2025-00100 Exhibit B - General Plan Amendment Resolution • PLN2025-00100 Exhibit C - Rezoning
• PLN2025-00100 Exhibit C - Rezoning Ordinance
• PLN2025-00100 Exhibit D - Project Plans
• PLN2025-00100 Exhibit E - Findings and Conditions of Approval Council Staff Report (ID # 5745) Meeting of June 9, 2026 Updated: 6/5/2026 10:54 AM by Alberto Quintanilla Page 10 • PLN2025-00100 Informational 1 - Market Assessment and Economic Benefits Analysis for Change of Use at 43800 Osgood
• PLN2025-00100 Informational 2 - PC Staff Report
• PLN2025-00100 Osgood Rd GPA Power Point
Recommendation: Staff and the Planning Commission recommend that the City Council:
1. Adopt a Resolution adopting the Negative Declaration and adopting the General Plan Amendment, each attached thereto, and making specified findings, and
2. Waive first reading and introduce an Ordinance approving the Rezoning of the project site, and the Project Plans based on the findings and subject to the conditions of approval.